Capitec’s Icarus trajectory
The bank’s share price has been shooting the lights out for years. But trading at such a premium to its peers, it was inevitable that cracks would emerge
06 October 2022 - 05:00
The market reaction to Capitec’s first-half results — the share price plummeted almost 14% in two days — brutally underscores what many have been saying for a while: Capitec is just too expensive.
Trading at a p:e well north of 20 for the past couple of years, Capitec commanded a rich premium compared with the four largest traditional full-service banks. The latter are trading at just north or below a p:e of 10...
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