Forward PE of 17.7. I would never touch this counter. Nice company, nice profit growth. Perfect market and industry position. Too expensive on a valuation basis. Too damn expensive. Assuming safaricom gives out all its profits as dividends, it would take you 17.7 years to recoup your money back, all factors constant (assuming flat profit growth for the next 17 years). However, vodafone's PE is 37.89 so maybe the counter still has room for capital gains.

Vodafone's PE is 37.89. This means that when evaluating telecommunications stocks, the traditional PE ratio may not account for much. Considering that safaricom may have a higher growth potential than vodafone (because it is in Africa), safaricom may be very undervalued. I dont understand how people value technology and telecommunications stocks.

Unga is good. I think I am a value investor. I see no value in safaricom at the current price. When buying a stock, I look at two things, profit after tax growth for the last 3-4 years,dividend yield, and the current valuation. Safaricom passes the PAT growth test. However, it fails in the valuation and dividend yield test at current prices. I can only buy safaricom at around Ksh 10-11 but I believe it is unrealistic to expect such a price any time soon.

Buda, from my records the last time Safcom touched your peak buy at 11 was January 31st 2014 and it went back to 12 in a week. The last time 10 was touched was December 19th 2013 and it was up to 11 in a week. The share price has never gone to that price range again. Best of luck with the waiting period

My current ABP is 16.05.With the current price of 21.00,the challenge then is how to decrease the abp further.Anyone with the idea?