Remember that valuation = Numbers + Story. Is the story from management trusted, can they turnaround the company in the face of stiff competition from both informal and formal sector?
True, good point. I was looking back at their share price back in the dollarisation days. Market cap got up to over $200m at some points, about 20 times more than the current. Their numbers were good, but not that good. S, thereo must have been a good story behind them.
OK should close a number of branches as a cost cutting measure ,innovate and open an online shop just like banks going digital and create spaza/tuckshop like agency where people can collect their groceries , therefore lowering the prices and compete with the informal retailers but leveraging with their brand.
Unfortunately, multiples are not comparable across nationalities, thus it is not correct to compare the Shoprite P/E ratio of over 20 with any Zimbabwean company.
Remember that valuation = Numbers + Story. Is the story from management trusted, can they turnaround the company in the face of stiff competition from both informal and formal sector?
True, good point. I was looking back at their share price back in the dollarisation days. Market cap got up to over $200m at some points, about 20 times more than the current. Their numbers were good, but not that good. S, thereo must have been a good story behind them.
OK should close a number of branches as a cost cutting measure ,innovate and open an online shop just like banks going digital and create spaza/tuckshop like agency where people can collect their groceries , therefore lowering the prices and compete with the informal retailers but leveraging with their brand.
Unfortunately, multiples are not comparable across nationalities, thus it is not correct to compare the Shoprite P/E ratio of over 20 with any Zimbabwean company.
A great read as always