Invest trust Bank Zambia:The share price review By Kampamba Shula

Who is Invest Trust Bank?

BACKGROUND Investrust Bank plc is a registered commercial bank in Zambia and has been in existence since 19 September 1996. The shareholders and directors of the Bank are seasoned bankers with proven track records at the highest levels.

INVESTRUST BANK PLC - BOARD OF DIRECTORS

	Dr. Justin B. Zulu Chairman First Zambian Governor, Bank of Zambia and former Executive Director at International Monetary Fund.
	Mr Friday C. Ndhlovu Managing Director Former Managing Director of Zambia National Commercial Bank.
	Mr Reuben L. Bvulani Director Former General Manager at the Bank of Zambia.
	Mrs. Eva Jhala Director Lawyer and former Permanent Secretary in the Ministry of Legal Affairs.
	Mr. Newton Lungu Director Chartered Accountant and Managing Partner, Newton Lungu & Associates.

Invest Trust Stock Price Analysis BY Kampamba Shula


Invest Trust Bank trades today at K17 but usually around K20.

It has no price to earnings ratio recorded but has an abnormal price to book value ratio of 1433.79.

But given their earnings per share to be K1.23,we can calculate their PE Ratio given the market price.
This gives us a PE ratio of 13.82,which is quite good.
But their book value ratio leaves much to desired.
In simple terms this means their ordinary shares are overpriced by that ratio to their actual Book Value.My question is that is the market right in overvaluing their shares,possibly expecting greater earnings in Future or is this an accounting error...take a look for your self at the price to book value ratio of Investtrust in the pdf file below.

LUSE MARKET REPORT