The Nigerian Exchange (NGX) has extended its strong momentum into 2026, building on one of its most impressive rallies in recent years. The market’s red-hot performance in 2025 has set a high bar. Yet, early indicators suggest that investor confidence remains intact.
As of January 13, the NGX had delivered a 6.57 per cent year-to-date return. This early gain has reinforced expectations that the market could once again outperform. Investors are increasingly positioning for a repeat of last year’s success.
However, as prices rise, stock selection is becoming more critical. Valuations are starting to diverge across sectors and individual names. While some stocks remain attractively priced, others are already trading at significant premiums.
In this feature, BusinessDay analyses 10 stocks that stand out based on valuation metrics. These include price-to-earnings and price-to-book ratios. This analysis does not constitute investment advice. Rather, it highlights stocks that, on paper, still offer upside potential in 2026.
May & Baker has emerged as one of the strongest performers in the healthcare space. Its shares traded at N28.55 as of January 14. The stock has returned 50.3 per cent year-to-date.
Despite this sharp rally, valuation metrics suggest continued investor interest. The company trades at a nine-month price-to-earnings ratio of 14.77x. This indicates that the market is still pricing in earnings growth. Its price-to-book ratio stands at 3.93x, meaning investors are paying N3.93 for every N1 of net assets. This premium reflects confidence in its product portfolio and brand equity.
Jaiz Bank has recorded one of the strongest gains among banking stocks. Its share price rose to N7.46 as of January 14. The stock has delivered a year-to-date return of 64 per cent.
The non-interest lender trades on a nine-month P/E ratio of 14.54x. Its price-to-book ratio is notably higher at 4.87x. This suggests that investors are willing to pay a premium for growth. Expectations around balance sheet expansion and earnings growth continue to support the valuation.
Aradel Holdings offers a more measured valuation profile. The stock traded at N792.60, up 18.3 per cent year-to-date. Its nine-month P/E ratio stands at 14.26x.
The company’s price-to-book ratio of 2.30x suggests moderate asset pricing. Investors appear to be betting on steady earnings growth rather than speculative upside. The valuation reflects cautious optimism.
Access Holdings remains one of the cheapest large-cap banks on the NGX. Its shares traded at N22.90 as of January 14. Year-to-date, the stock is up 9.29 per cent.
The group trades on a nine-month P/E ratio of just 2.89x. Its price-to-book ratio is even more striking at 0.31x. This means investors are paying only 31 kobo for every N1 of net assets. The valuation suggests a significant upside as the bank enters a period of consolidation after an expansionary phase.
Vitafoam’s shares closed at N99.00. The stock has gained 7.61 per cent so far in 2026. It trades on a nine-month P/E ratio of 10.50x.
However, its price-to-book ratio is higher at 4.14x. This indicates a strong premium on assets. Investors appear confident in the company’s operational resilience and market leadership in the manufacturing space.
NEM Insurance continues to attract growing investor attention. Its share price stood at N31.00 as of January 14. The stock has returned 15.7 per cent year-to-date.
The insurer trades on a nine-month P/E ratio of 10.08x. Its price-to-book ratio of 1.92x suggests a reasonable valuation. This leaves room for further re-rating as earnings improve.
Fidson Healthcare has posted a strong rally in the first few days of 2026. Its shares traded at N73.10, delivering a year-to-date return of 45.9 per cent. The company trades on a nine-month P/E ratio of 21.07x. Its price-to-book ratio is 5.71x.
United Bank for Africa remains attractively valued. Its shares traded at N45.20 as of January 14. The stock is up 8.52 per cent year-to-date.
UBA trades on a nine-month P/E ratio of 3.33x. Its price-to-book ratio stands at 0.46x, currently under half of GTCO’s 1.07x. This discount reflects market caution, despite the bank’s broad African footprint and diversified earnings base.
NASCON traded at N115.00 per share, up 6.98 per cent year-to-date. The salt producer trades on a nine-month P/E ratio of 9.58x.
However, its price-to-book ratio of 5.01x shows a significant premium on assets. Investors appear to favour the stock for its defensive qualities amid macroeconomic uncertainty.
Custodian Investment rounds out the list. The stock traded at N44.15 as of January 14. Year-to-date, it is up 6.98 per cent.
The company trades on a nine-month P/E ratio of 5.82x. Its price-to-book ratio stands at 1.48x. This conservative valuation could appeal to investors seeking stability with modest upside.
As the NGX rally matures, valuation discipline is becoming increasingly important. Momentum remains strong, but pricing gaps are widening. Stocks with solid fundamentals and reasonable valuations are likely to shape market performance in 2026.