₦airaland Forum

awesomeJ:
Finally:
Naira closed at 1396.99 today.

🎉🎉

Next we await strengthening below 1350.

This should make some already reported FX related gains in banking stocks comprehensive income turn into losses. Though the severity may be muted due to growing incomes.

BabsO2:
This should make some already reported FX related gains in banking stocks comprehensive income turn into losses. Though the severity may be muted due to growing incomes.

For most companies, their fx exposures are net liabilities. So this strengthening will translate into gains. Although this won't materialize until end Q1.

Am I missing your point though?

What I see is every company that recorded FX gains in 2025 did so on naira strengthening, more strengthening thus only translates into more gains for them.

PZ for instance will might have to value their FX Obligations below 1350 next month. Another N70 gains for them.

https://www.youtube.com/watch?v=NhadzclaG7E

A summary of today's trading session on the NGX

awesomeJ:
For most companies, their fx exposures are net liabilities. So this strengthening will translate into gains. Although this won't materialize until end Q1.

Am I missing your point though?

What I see is every company that recorded FX gains in 2025 did so on naira strengthening, more strengthening thus only translates into more gains for them.

PZ for instance will might have to value their FX Obligations below 1350 next month. Another N70 gains for them.

Your point is clear but I think you missed his.

While many manufacturing companies, FMCGs, consumer goods and even telcos bellwethers lost due to the falling naira, the banks on their other hand, (and a few other companies) had currency revaluation gains.

He is asking if this recovery in the naira will reverse those previously booked revaluation gains of banks.

I hope it’s clear now.

Cheers

Iskalamong

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awesomeJ:
Bitcoin /USD is down 6.7%
USd / naira is down 2%

Double wahala for people that bought Bitcoin with naira.

Even the legendary gold dipped today. Down c.3%

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iskalamong:
Even the legendary gold dipped today. Down c.3%

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It is currently in green

iskalamong:
Your point is clear but I think you missed his.

While many manufacturing companies, FMCGs, consumer goods and even telcos bellwethers lost due to the falling naira, the banks on their other hand, (and a few other companies) had currency revaluation gains.

He is asking if this recovery in the naira will reverse those previously booked revaluation gains of banks.

I hope it’s clear now.

Cheers

Iskalamong

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Na banks go report FX losses this time while the manufacturers will report FX gains

iskalamong:
Your point is clear but I think you missed his.

While many manufacturing companies, FMCGs, consumer goods and even telcos bellwethers lost due to the falling naira, the banks on their other hand, (and a few other companies) had currency revaluation gains.

He is asking if this recovery in the naira will reverse those previously booked revaluation gains of banks.

I hope it’s clear now.

Cheers

Iskalamong

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Didn't the 0% long NOP policy from 2024 fix this? Most banks already realized the FX gains in 2024 na.

Apart from those like ACCESSCORP who have significant foreign subsidiary assets.

Agbalowomeri:
Na banks go report FX losses this time while the manufacturers will report FX gains

Especially Access.

Agbalowomeri:
Na banks go report FX losses this time while the manufacturers will report FX gains

CBN supposed to share in the forex loss since they shared in the gain last time

awesomeJ:
For most companies, their fx exposures are net liabilities. So this strengthening will translate into gains. Although this won't materialize until end Q1.

Am I missing your point though?

What I see is every company that recorded FX gains in 2025 did so on naira strengthening, more strengthening thus only translates into more gains for them.

PZ for instance will might have to value their FX Obligations below 1350 next month. Another N70 gains for them.

I am talking about banks. Not manufacturing companies.

pluto09:
PAT is 6.46b and OS is 13.86b
How did they arrive at an eps of N0.93k?

It’s based on the weighted average OS. See Note 24. Depends on when the the private placement came in. Probably October/November based on the ratio.

unite4real:
CBN supposed to share in the forex loss since they shared in the gain last time

I think govt taxed only the realized gains. But gains not yet realized were not taxed. Realized gains means the Fx assets were already disposed. Hence no losses can occur with respect to them if naira strengthens.

awesomeJ:
Especially Access.

Was thinking of buy Access. If naira strengthens it may hit them more indeed.

This man

emmanuelewumi:
It doesn't include their debt and cash positions

BabsO2:
I am talking about banks. Not manufacturing companies.

Yes, I didn't read your post well.
@iskalamong helped my hastiness.

You're right about unrealized fx gains from 2024 becoming losses.

We'll see that in FY '25 results for those who have unrealized gains from 2024.

BabsO2:
Was thinking of buy Access. If naira strengthens it may hit them more indeed.

Ask Agba for price. Don't be surprised if he quotes single digit. He has point to hold on to now.

awesomeJ:
Yes, I didn't read your post well.
@iskalamong helped my hastiness.

You're right about unrealized fx gains from 2024 becoming losses.

We'll see that in FY '25 results for those who have unrealized gains from 2024.

FCMB unaudited has N5b in comprehensive statement recorded clearly as a loss due to FX Translation and another 30b due to fair values (likely FX related if one looks through the notes. But with massive growth recorded in PAT in 2025 these loses are did not impact the comprehensive income growth that much. WEMA doubled growth in PAT and comprehensive income with no FX wahala.

zendi:
Ojukwu wrote in the condolence register that Awolowo was the greatest President Nigeria never had.

In my case, I'm alive and and strong, but it may be from the above that I am the greatest teacher, or pastor, that Nigeria has missed.

Those people are great at explaining.

Retiring as a classroom teacher/ pastor or passive lecturer could also be in the books.

You aint out of the woods yet.

emmanuelewumi:
Just trying to say the stock with the lowest PE might have the highest EV/EBIT, due to high debt and little cash

found out it could be used across different sectors.
Ese.

unite4real:
CBN supposed to share in the forex loss since they shared in the gain last time

You dey mind them.

awesomeJ:
Finally:
Naira closed at 1396.99 today.

🎉🎉

Next we await strengthening below 1350.

Dont see Naira below 1317

BabsO2:
FCMB unaudited has N5b in comprehensive statement recorded clearly as a loss due to FX Translation and another 30b due to fair values (likely FX related if one looks through the notes. But with massive growth recorded in PAT in 2025 these loses are did not impact the comprehensive income growth that much. WEMA doubled growth in PAT and comprehensive income with no FX wahala.

Exactly 💯💯

PuristForest:
Dont see Naira below 1317

That would be fair enough.

1317 means we could again buy PMS at #650 retail, a price level not seen since 2023.

Like so for most other imported items: cars and all.

But more importantly it would be awesome that the currency does 2 years of back to back strengthening, I don't think I've ever witnessed that.

aj8:
Best to wait until some clarity around their core business. Mining Gold / Lithium beyond sand. Do get back if you discover significant progress on their gold prospecting and refinery . PE is understandably high 21.09.

What's common sense target on Vitafoam pls

Xidget:
What's common sense target on Vitafoam pls

Please apply Vitafoams PE ratio = 10.8

Q12026 =3.35
Estimated EPS at FY based on the above = 3.35 x 4 = 13.4
Estimate price based on the multiple = 10.8x 13.4 = 144.72
Based on the Q12026 for now.

However , any crash to below 3.35 x 4 x 5 =67 will always be a bargain.

Common Sense is simply based on an average of our collective emotional PEs…. below which every one is definitely happy to buy as long as the growth is organic.

Hope that was helpful.

Please for all those asking for Common Sense Targets. All my posts are made here on this platform. I do not operate nor intend to operate any other platform besides this.

Please kindly note that once a stock zooms past its Common Sense Target, you can henceforth gauge price based on its P/E multiple. Common Sense Target allows you to gain a front row seat. Thereafter decide the next step..continue to sit or stand and walk away to return or never to return. Wherever I see value, I will post. There will not be many but surely be profitable if they come. A stock however good or strong, if it falls to below the Common Sense Value, will definitely become a bargain as long as the growth is organic. However, to gauge further trajectory above its CommonSense price, it is best to apply its P/E.

aj8:
It’s based on the weighted average OS. See Note 24. Depends on when the private placement came in. Probably October/November based on the ratio.

Same applies to Wema Bank fyi. Don't do the calculation on the total OS till the full year when the funds would have been fully weighted. Always check the notes to the EPS if the value seems strange.

emmanuelewumi:
Can you also try the Enterprise Value/Earning Before Interest and Taxes


Unilever PE is over 17, but the EV/ EBIT is 6.45

Here are the values below which still put Meyer way behind them.

MEYER.
PE RATIO 17.27X
EV/EBIT is 19X


BERGER P.
PE RATIO 11.72X
EV/EBIT. 7.1X


CAP.
PE RATIO 10.58X
EV/EBIT 6.6X

https://www.tradingview.com/markets/stocks-nigeria/market-movers-large-cap/

Easy source for PEs etc….

https://www.youtube.com/watch?v=Y_uxcbY1-LU

A few stocks I'd be watching closely in today's trading session on the NGX.