nathanielpresents/ethiopian-capital-markets-equity-research

Institutional equity research report and financial valuation models for Ethio Telecom and CBE ahead of the ESX launch. # Equity Research Report: Ethiopian Securities Exchange (ESX) Valuation **Author:** Natnael Seyum Haile **Date:** June 2026 **Coverage Universe:** Ethio Telecom (ETEL) & Commercial Bank of Ethiopia (CBEB) --- ## Executive Summary This repository contains a deep-dive, institutional-grade equity research report analyzing the foundational market anchors of the upcoming **Ethiopian Securities Exchange (ESX)**. The analysis covers competitive dynamics, macro catalysts like currency liberalization, and structural valuations. ### 📄 Click Here to Open & Download the Full PDF Report --- ## Investment Summary & Ratings | Company | Proposed Ticker | Institutional Rating | Target Price (ETB) | Valuation Model Used | | :--- | :---: | :---: | :---: | :--- | | **Ethio Telecom** | ETEL | **BUY** | ETB 145.00 | 5-Year Free Cash Flow to Firm (FCFF) | | **Commercial Bank of Ethiopia** | CBEB | **HOLD** | ETB 310.00 | Two-Stage Dividend Discount Model (DDM) | ## Core Methodologies Used * **Ethio Telecom (ETEL):** Valuation modeled via an intensive infrastructure cycle framework (16.5% WACC, 6.0% Terminal Growth), heavily capturing the high-margin monetization scaling of the *telebirr* digital payment ecosystem. * **Commercial Bank of Ethiopia (CBEB):** Valuation modeled via a sustainable earnings retention framework (18.0% Cost of Equity), balancing structural asset dominance against central bank interest-rate policy re-alignments. --- *Disclaimer: Prepared strictly for portfolio management simulation and academic asset allocation evaluation purposes.*