John Joyi

Modeling Leadership| Bsc in Economics Edu| Investors| Application of Knowledge is Power|

[Judah MD @ThatJuDaH]

Day 2 of how to value a stock

Yesterday, we talked about PE ratio and how you can't depend on it alone to value a stock.

Today I want to introduce you to another metric. The Price/Earnings-to-Growth ratio.

PEG Ratio = PE Ratio ÷ Earnings Growth Rate

It helps you answer one important question:

“Am I paying a fair price for this company’s growth?”

Example:

A company has:
• PE ratio of 20
• Expected earnings growth of 25%

PEG = 20 ÷ 25 = 0.8

How to interpret it:

• PEG below 1 → potentially undervalued relative to growth
• PEG around 1 → fairly valued
• PEG above 1 → possibly expensive

Let's bring it into context with a real life example of two stocks in the same industry

Wapco vs Buacement

[Judah MD @ThatJuDaH]

Ever wondered how to know if a stock is overvalued or undervalued?

This is important because that's one of the ways you can identify companies that can 2x to 5x. Some people identified and snatched up TIP when it was still in the single digits, and some people identified and bought Aradel when it was still N400.

Let's talk today about one of the most common valuation tools: The PE Ratio.

PE Ratio (Price-to-Earnings) = how much you’re paying for ₦1 of a company’s profit.

If a stock has a PE of 10, it means investors are willing to pay ₦10 for every ₦1 the company earns annually.

How to use it:

• Valuation check: Compare PE to similar companies (that is companies in the same industry. For instance, Aradel vs Seplat, Dangote Cement vs Buacement vs Wapco). If peers trade at 15x and your stock is at 8x, it might be undervalued (or the market knows something you don't. There may be some macroeconomic risks facing the company or the market doesn't believe the company will do well in the long run).

• Growth matters: A high PE isn’t always bad. Fast-growing companies deserve higher PEs. A slow/no-growth company with a high PE? That’s a red flag.

• Market context: If the average market PE is around 10x and you’re buying a company at 20x, you’re betting on strong future growth.

• Simple rule of thumb: Low PE = potentially cheap. High PE = potentially expensive

But ALWAYS ask: why?

PE doesn’t give answers. It helps you ask better questions.

In summary, you can't use PE alone to value a company. If you decide to buy only stocks with low PE, you may pile up a basket of crap cos maybe, just maybe, the PE is low for a reason.

In the coming days, I will be talking about other metrics that can help you value a company so you get a real picture of whether a company is really undervalued by the market relative to its earnings potential or not.

What other metrics do YOU use to value a company?

#NigerianStocks #ValueInvesting #PEratio #InvestSmartNG

[John Joyi @joyi_john]

That’s why financial literacy is the first principle in building financial success.

Their site has revealed the lies already.
People should be careful out there.

[Judah MD @ThatJuDaH]

They have come with another scam oo

@investbamboo they said they want partner with you oo

Come and dissociate yourself from them before they use you to defraud others

“Welcome to PayGlow mutual Fund Investment platform. A platform that allows you earn daily through various investment plan.

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Unlike other mutual Fund platforms, You can start your mutual Fund Investment journey with as low as #4000 & explore or grow your wealth gradually with 100% capital protection.

WE ARE NOT A PONZI SCHEME
PayGlow Mutual Fund Investment platform isn't a ponzi scheme or a get-rich-quick platform. It's a system that allows investors to grow their wealth gradually via Stock market, equity with our low risk investment plan and 100% capital protection. Our platform is looking forward to partnership with Bamboo investment to explore”

[John Joyi @joyi_john]

@ThatJuDaH People should be careful, one fake platform will come one day collect 1 years of savings from ignorant people.

[John Joyi @joyi_john]

@ThatJuDaH No legitimate mutual funds pay fixed profits every 24 hours.

[John Joyi @joyi_john]

@TomolaGroup Interested

[Toby @TomolaGroup]

Saving alone will never make you wealthy, and the math proves it without mercy.

Inflation is running near 16% while savings accounts pay single digits. Every year, your saved money loses purchasing power, quietly and without fail. The balance grows while its real value shrinks.

Saving is defence, protecting you from emergencies. Investing is offence, growing your purchasing power over time. You need both to survive, but only one of them builds wealth.

[Toby @TomolaGroup]

TIP just released its H1 2026 results and they look solid.

Revenue more than doubled to ₦6.95 billion, gross profit more than doubled, and profit before tax more than doubled to almost ₦3 billion.

This is a quiet Nigerian waste management and industrial cleaning company serving the oil and gas sector, and it is scaling fast. In Q2 alone sales rose thirty-one percent, gross profit jumped ninety percent, and profit after tax climbed fifty-four percent.

Net assets jumped over 400% to ₦17.3 billion while working capital rose more than 500%.

For shareholders, the Directors proposed the company’s first interim dividend of 20 kobo per share.

Strong numbers, a much stronger balance sheet, and cash going back to owners.

[John Joyi @joyi_john]

@ThatJuDaH A lay man explanation. Nice one

[Judah MD @ThatJuDaH]

Interim is like, we don make small money this year

Oya use this one hold body for now from our profits

Final is like, this is everything we have made this year, and this is what we are rewarding you with for being a shareholder.

Some companies pay some profit during half year as interim and the rest as a final dividend after the years report is concluded.

Some even do quarterly payments like SEPLAT and NIDF

While some others just wait till end of the year and pay everything at once as a final dividend

Owning a share of a company won’t guarantee you a dividend anyway as UBA and Acess holders can testify to 😂🏃🏃🏃

They only pay dividends when they make sufficient profit and if regulations (eg in the banking sector) allow them to

So if you are in a loss making company, nothing concern you and dividend

[John Joyi @joyi_john]

POV: When your passion for finance meet an opportunity to serve

#NGX #NYSC

[Wale Banks 📊 @iamwalebanks]

How to Analyze NGX 🇳🇬 Stocks Using Metrics

A Step-by-Step Guide 🧵👇🏽

[Wealth Coach Omiete @wealthcoachomi]

Everyone needs liquid asset investments. If you still see the stock market as a scam, your older self may never forgive you.

[Olumide Adesina @olumidecapital]

Establish a safety net so you are never forced to liquidate investments during a downturn before putting capital into 🇳🇬 stock market

[Olumide Adesina @olumidecapital]

"It's not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for." — Robert Kiyosaki

[The Initiates Plc @Theinitiatesplc]

80% of Nigeria's waste ends up in open dumps: leaking methane, poisoning groundwater, and swallowing scarce urban land.

Recovery first. Value addition next. Landfill last. That's the circular economy in practice.

The Initiates Plc: Ending the open-dump era. ♻️

[Ola Adams @AlfaAdam001]

The first checkpoint in every fundamental analysis is revenue growth.

[Nurseinvestor @abalu_uthman]

Don’t lose money today.

Good morning.

[Compounding Naira @compoundinnaira]

It is not your job to save everyone, you should always put yourself first.

After making plans for today’s survival, make plans for future survival. Even after future arrangements, have multiple backup plans in case things don’t work out as planned.

Only after doing all these should you consider saving others.

[Wale Banks 📊 @iamwalebanks]

Patience is an investment strategy.

Impatience is usually an exit strategy.