Fair Market Value of CRDB Bank PLC Shares (TANZANIA)

We have estimated the Fair Market Value of 100.0% of the common stock of CRDB Bank PLC as of March 2009 to be TZS 240.21 PER SHARE. This represents the weighted average value as computed in the Financial Analyst . Valuations of businesses are estimated and not absolute and therefore, analysts usually take the average of the results of the valuation. In this analysis Financial Analyst© employed the same valuation principle.

According to the valuation, CRDB Bank PLC shares are being offered and sold at a discount of 37.5%. The shares are undervalued at TZS 150.00 on the Market. Just like water finds its own level, prices of undervalued stocks have a tendency to go up or rise towards their estimated true value. This was evidenced in the National Microfinance Bank (Tanzania) PLC offer whose shares were offered at an estimated discount of 40% and the bank's share prices almost doubled within a few weeks after the initial public offering. CRDB Bank PLC shares present another opportunity.