Dangote Cement Market Capitalisation Increased by 28% In November
The Market Capitalization of Dangote Cement Plc increased from N2.73 trillion at the open of trade on the 2nd of November 2020, to N3.49 trillion at the close of trade on the 30th of November, representing increased by 28.13 per cent during the period under review.
According to market analysts the hunt for value on the bourse led to a wild increase in the share price and also the market capitalization of key companies on the Nigerian Stock Exchange in the month of November.
One of such companies is Dangote Cement, which the renewed buying interest can be attributed to the strong performance displayed in the third quarter of 2020, despite the challenging macroeconomic environment.
Given the strategic positioning of the cement producer in the industry, Dangote cement reached a record high EBITDA margin of 24 per cent in the third quarter of 2020.G
The Group net profit of N82 billion, a 135.1 per cent higher than the profit reported by the Group in the third quarter of 2019 made analysts review their models, and also the Group’s valuation.
Market capitalization is the aggregate valuation of a company based on its current share price and the total number of outstanding stocks.
It also tells how much investors value a company, and gives an idea of what a company is worth on the stock exchange, as well as investors’ perception of a company’s future prospects.
