Cairo – Mubasher: Mubasher Trade Research has set the fair value of EFG Hermes at EGP 28 per share, according to a report released on Sunday.

Currently, EFG Hermes’ share is trading at a price-to-earnings (P/E) ratio of 11.79 times for fiscal year 2019 based on a current market price of EGP 18.75 a share, the report showed.

The company’s share “is currently relatively undervalued at the current market price,” the report added.

In addition, EFG Hermes’ share is trading at a price to book value (P/BV) ratio of 0.97 times according to the current market price of EGP 18.75 per share.

During the second quarter of 2019, EFG Hermes’ profits attributed to shareholders registered EGP 303.5 million, rising by 49% year-on-year from EGP 203 million.

The growth in net profits was ascribed to a 26% rise in total revenues which hiked to EGP 1.523 billion in Q2-19 from EGP 1.202 billion in Q2-18 as well as a 49% drop in income tax expense which hit EGP 36.6 million in Q2-19, compared to EGP 72.3 million in the prior-year period.