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Erudite AfricaCenter of Excellence
← Investment Analysis and Portfolio Management

Fundamental analysis and valuation

Module 03 / 5 · 65 min

Work from the economy to the industry to the company, read the annual report of an Ethiopian bank or insurer, and value its shares with dividends, multiples and an eye on corporate actions.

In this module you will learn to

  • Carry out a top-down economy, industry and company analysis for an Ethiopian listed company
  • Read the key lines of an Ethiopian bank's and insurer's annual report
  • Value a share with the Gordon growth model, P/E and P/B, and explain dividend policy in Ethiopian share companies
  • Explain the effect of rights issues, bonus issues, splits, mergers and buybacks on price and holders

Built on

  • Erudite Africa course specification 2.d: Investment Analysis and Portfolio Management, Levels 1 and 2 (October 2026)
  • Erudite Africa Training Module: Ethiopian Context, programme overview and regulatory register (October 2026)
  • Capital Market Proclamation No. 1248/2021; ECMA Directives No. 980/2024 and No. 996/2024; ESX Rulebook (December 2024)
  • NBE directives as listed in the lessons: SBB/92/2024, SBB/95/2025, SBB/72/2019, FXD/01/2024, NBE/INT/13/2026; NBE Monetary Policy Committee release No. 7 (July 2026)
  • NBE financial sector data for FY2024/25 and ESX and ECMA market data, as compiled in Investopia sector research (October 2026)

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.