The shares of Dangote Sugar Refinery Plc have been rated high by analysts at FSDH Securities Limited, saying the shares are currently trading at a very heavily discounted rate.
According to a statement issued by the Dangote Group in Abuja yesterday, Dangote Sugar shares closed at N3.92 per share last week.
"But in their review of the performance of the company and its future prospects, analysts at FSDH Securities said the fare value for the stock is N6.94 per share. In arriving at N6.94, the analysts said that they reviewed top line and bottom line of the company in relation to its third quarter result ended September 31, 2011.
"According to them, they used two valuation methods which are Discounted Future Earnings (DFE) and Discounted Free Cash Flow (DCF). They projected Turnover, Earnings Before Interest and Tax (EBIT), Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) and Profit After Tax (PAT) for the periods ending December 2011, 2012, 2013, 2014 and 2015, " the statement said, adding that "they also estimated turnover of N106.25 billion, N120.74billion, N137.21billion, N153.19billion and N168.73billion respectively.