British American Investments Company – Kenya (BRITAM) has made investors very happy of late. The stock is among the Nairobi Securities Exchange’s best performers this year, posting a dazzling 94.7% return.
Now the shares trade a shade below 2.5x their book value. Is that too rich a price? Or is there upside left here?
Let’s take a look at earnings (and Kenya’s long-term bond rate) to give us a clearer picture.