Elders, I seek your thoughts on this. Kenya Airways (KQ) was re-listed on the Nairobi Securities Exchange (NSE) on Monday, January 6th, with shares priced at just Ksh 3 each. As of today, January 13th, the share price has doubled, with the day’s average at Ksh 6.3.
Estimated Fair Value
Based on valuation models, particularly Discounted Cash Flow (DCF) analysis, KQ’s shares have an estimated fair value of Ksh 18.44. This suggests the stock is currently trading at a 20% discount to its fair value.
Valuation Metrics
The Price-to-Sales (P/S) ratio for KQ is 0.2x, significantly lower than industry peers. This indicates the stock may be undervalued relative to its sales and market position.
Given these factors, do you think KQ is a good addition to a portfolio? Personally, I think it might be worth taking a calculated risk. What are your thoughts?
Look at traded volumes too, unaweza kuta only 500 shares were sold/bought by same broker…price manipulation manenos. Very many guys have KQ shares they want to offload now that they’re ableeto