Wazua
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Safaricom HY 2018
Rank: Veteran Joined: 4/4/2016 Posts: 1,997 Location: Kitale
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Ericsson wrote:Ebenyo wrote:Ericsson wrote:Musimo wrote:VituVingiSana wrote:Ebenyo wrote:Horton wrote:Ebenyo wrote:Safaricom current net asset value per share is kshs 2.40 against the current share price of kshs 29.75.
This describes the firm as "enjoy while the ride last". True but I think this dhould be valued as a tech stock The principle applies to all companies. If safaricom folds up today,each shareholder will be paid kshs 2.40 per share. According to the current price,thats a massive blow to those with the near average buying price. Someone who has played the market for the last ten years and with a below ABP of kshs 2.40 will be the one to benefit. Dear Ebenyo, Caution... If Safcom folds up today then the NAV will be less than 2.40 as most "fixed assets" may not fetch the book value unless there are competitors willing to fight over the assets. The major asset would probably be the (mobile/bandwidth) licenses not "fixed assets"... The franchise/brand is worth much more. It's a cash-printing machine. A firm like Unga [which I have been looking at in detail] is different in that it has: Land - Can be sold to anyone Equipment - Specialized and can be sold to competitors [if they want them] Brands - Can be sold to competitors but these can be "damaged" easily by a complacent management I would think that maybe safaricom would also value Mpesa as an asset, alongside the frequencies for 4G among others. Maybe it being classified as a tech stock would be in order as suggested previously. Then again, on matters valuations I am the most lay of laymen, so some further breakdown on what it would classify as assets would be welcome. For tech companies valuation is normally done based on the following; --Free Cash flow --Patents and licences like spectrum fees,4G licence,Mpesa --Comparable Analysis where you look at the EBITDA.A multiple is then done to get the value e.g 10 times EBITDA The current EBITDA is kshs 54,270,000,000. This gives a NAV of kshs 15.90 per share by your estimation. Wrong its more than that. Use the value of the last audited Full year results It was about 79bn i have used the latest HY 18 results. There is a difference on liquidation and selling of safaricom. If its liquidated today,shareholders will loose big.While there could be a minimal lose if its sold. Towards the goal of financial freedom
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Rank: Elder Joined: 12/4/2009 Posts: 10,701 Location: NAIROBI
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Ebenyo wrote:Ericsson wrote:Ebenyo wrote:Ericsson wrote:Musimo wrote:VituVingiSana wrote:Ebenyo wrote:Horton wrote:Ebenyo wrote:Safaricom current net asset value per share is kshs 2.40 against the current share price of kshs 29.75.
This describes the firm as "enjoy while the ride last". True but I think this dhould be valued as a tech stock The principle applies to all companies. If safaricom folds up today,each shareholder will be paid kshs 2.40 per share. According to the current price,thats a massive blow to those with the near average buying price. Someone who has played the market for the last ten years and with a below ABP of kshs 2.40 will be the one to benefit. Dear Ebenyo, Caution... If Safcom folds up today then the NAV will be less than 2.40 as most "fixed assets" may not fetch the book value unless there are competitors willing to fight over the assets. The major asset would probably be the (mobile/bandwidth) licenses not "fixed assets"... The franchise/brand is worth much more. It's a cash-printing machine. A firm like Unga [which I have been looking at in detail] is different in that it has: Land - Can be sold to anyone Equipment - Specialized and can be sold to competitors [if they want them] Brands - Can be sold to competitors but these can be "damaged" easily by a complacent management I would think that maybe safaricom would also value Mpesa as an asset, alongside the frequencies for 4G among others. Maybe it being classified as a tech stock would be in order as suggested previously. Then again, on matters valuations I am the most lay of laymen, so some further breakdown on what it would classify as assets would be welcome. For tech companies valuation is normally done based on the following; --Free Cash flow --Patents and licences like spectrum fees,4G licence,Mpesa --Comparable Analysis where you look at the EBITDA.A multiple is then done to get the value e.g 10 times EBITDA The current EBITDA is kshs 54,270,000,000. This gives a NAV of kshs 15.90 per share by your estimation. Wrong its more than that. Use the value of the last audited Full year results It was about 79bn i have used the HY 18 results which is the latest. Your point is if safaricom will be sold while i was talking about liquidation. HY results are not audited and are never used in valuation of a company. A company is valued using FY audited. Use last audited FY results Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,701 Location: NAIROBI
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http://www.theeastafrica...8342-838mysz/index.html
And opportunity for safaricom to enter Uganda by bailing out its sister Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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 Pesa Nane plans to be shilingi when he grows up.
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Rank: Member Joined: 1/30/2011 Posts: 207
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watesh wrote:Ebenyo wrote:This could be an option for those passed by safaricom. They will have to prove their profitability and sustainable onward growth.Otherwise it will just be speculators den. Will it even list on the NSE? Perhaps the London bourse...
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Rank: Elder Joined: 12/4/2009 Posts: 10,701 Location: NAIROBI
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http://www.kbc.co.ke/144...nected-safaricom-fibre/
More than 144,000 homes countrywide are now within reach of Safaricom’s Fibre to the home service in Nairobi County. Safaricom connected Ngummo and Newa estates to its Fibre benefiting more than 1,200 homes on Sunday. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,701 Location: NAIROBI
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sh.31 smashed Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,701 Location: NAIROBI
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Foreign investors taking positions in anticipation of good full year results Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Elder Joined: 12/4/2009 Posts: 10,701 Location: NAIROBI
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Full year results to be announced on 10 May 2018 Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,701 Location: NAIROBI
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33 per share smashed ruthlessly Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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Rank: Elder Joined: 12/4/2009 Posts: 10,701 Location: NAIROBI
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Maybe in dreams Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 1/30/2011 Posts: 207
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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 Happy for her but who will replace her? She is the engine behind Safaricom "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Elder Joined: 11/5/2010 Posts: 2,459
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murchr wrote: Happy for her but who will replace her? She is the engine behind Safaricom Not quite. She got that job two years ago after Peter Arina was forced out. Peter is the guy who can be called the engine behind Safaricom. Started out during Michael Joseph's days and even then his title used to change from time to time but he was always the 2nd in command. He literally inducted Bob to the company. Incidentally, its Peter Arina who brought in most of the senior mgt from his former employer, Unilever. Including Sylvia.
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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FRM2011 wrote:murchr wrote: Happy for her but who will replace her? She is the engine behind Safaricom Not quite. She got that job two years ago after Peter Arina was forced out. Peter is the guy who can be called the engine behind Safaricom. Started out during Michael Joseph's days and even then his title used to change from time to time but he was always the 2nd in command. He literally inducted Bob to the company. Incidentally, its Peter Arina who brought in most of the senior mgt from his former employer, Unilever. Including Sylvia. Peter Arina the thief? He went to EA Cables and couldn't do nothing. Those who worked at Safcom and Unilever will tell you this woman is such a heavy lifter. If you wonder who made the pre-pay platform in Safaricom sexy, that was Silvia. No joke "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Elder Joined: 11/5/2010 Posts: 2,459
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murchr wrote:FRM2011 wrote:murchr wrote: Happy for her but who will replace her? She is the engine behind Safaricom Not quite. She got that job two years ago after Peter Arina was forced out. Peter is the guy who can be called the engine behind Safaricom. Started out during Michael Joseph's days and even then his title used to change from time to time but he was always the 2nd in command. He literally inducted Bob to the company. Incidentally, its Peter Arina who brought in most of the senior mgt from his former employer, Unilever. Including Sylvia. Peter Aina the thief? He went to EA Cables and couldn't do nothing. Those who worked at Safcom and Unilever will tell you this woman is such a heavy lifter. If you wonder who made the pre-pay platform in Safaricom sexy, that was Silvia. No joke I worked for this company at some point and I can tell you PA is a legend. That winning culture that has made safcom what it is today came from him. Everyone, Sylvia included, grew under him. As for eating, let us just say not many people at Safaricom would survive if a thorough investigation was to be done. Too much money and the internal control systems are always playing catch up. Remember the scandal revolving around premium services ? Where subscribers were being charged daily for services they never signed up for ? The figures were running to hundreds of millions. Almost the entire dept had to be sent home and PA got caught up as the overall boss.
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Elder Joined: 12/4/2009 Posts: 10,701 Location: NAIROBI
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murchr wrote: Happy for her but who will replace her? She is the engine behind Safaricom The manner in which it was reported in NTV news yesterday was like she was edged out of safaricom. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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