Nestle Nigeria Plc’s Market Capitalization has crossed the N1 trillion mark amid renewed buying interests on the local bourse.
At the close of trade today, November 10, the Market Capitalization of Nestle is ₦1.127 trillion.
Its share price is N1421.70, with total Outstanding shares of 792,656,252.
The initial widespread pessimism over the performance of equities due to the negative COVID-19 impact spiked a huge sell-off on the local bourse.
As a result of this, the market capitalization of the company fell below N650 billion in March 2020.
However, the renewed confidence of investors in the consumer goods giant, spiked buying interests in the shares of the company, after the company released its third-quarter financial results. This drove the share price of Nestle up to its current level.
In like manner, the parent company of Nestle Nigeria, Nestle S.A seized this opportunity to increase its stake in the company, as the relative valuation of Nestle Nigeria and the confidence of the parent’s company in the long-term fundamentals of the company inspired the world’s largest food and beverage company to accumulate additional units of Nestle Nigeria shares.
What you should know
Market capitalization is the aggregate valuation of a company based on its current share price and the total number of outstanding stocks.
Nairametrics arrived at Nestle’s market capitalization of N1.13 trillion by multiplying its share price of N1421.70, at the close of trade today with its total outstanding shares of 792,656,252.
The buying interests by investors was spiked by the company’s revenue and profits, which recovered in the third quarter of 2020 after the COVID-19 disruption.
This changed investors’ sentiments about the company’s fundamentals. It’s trade segment and supply value chain made analysts review their models, which spiked the 21% increase in the market capitalization of the company.