Every company has a fair value, whether good or bad and if you have followed my recommendations as a trader, you'd notice that I don't joke with GOOD stocks; fundamentally sound companies that are oversold/undervalued.

3 months ago, I dropped a 25-minute video on YouTube where I discussed the upside potential of Ecobank (click here to watch it)

I boldly forecasted Ecobank's rally from N16 and why you should buy the stock for a 25-30% return.

How did I discover an undervalued banking stock like Ecobank (ETI)?

I have mastered the process of valuing a fundamentally sound stock with a high level of accuracy.

Another stock I had predicted its move using my fair value estimate strategy was BETAGLASS, a stock I mopped up at N30+ with fair value printing at N47+.

Learning how to value a stock in the Nigerian stock is one sure way to find hidden gems and get in earlier before others.

You don't have to pick random stocks for valuation, here are the 3 steps to uncover the best stocks in the market:

1. I look for the top 1% stock with the best fundamentals.
2. I discount their earnings using a modest risk-adjusted rate that reflects the 10-year bond yield.
3. I buy the ones that their share prices are far below my fair value estimate.

Here is a video clip (culled from one of my video courses).

I used an Excel sheet to calculate the fair value of Ecobank when the banking stock sold for N16.

You'll also notice that most of the stocks here have rallied to reflect their value.

If you'd like to get my course on how to value Nigerian stocks for trading, click here.