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In today's blog we take a look at the phenomenal rise in the share price of Naspers from 2007 to current levels in October 2017 on an interactive animated graph which shows the exponential growth experienced in Nasper's share price over time.
The animated graphic uses the average share price per month for the animation. Data was obtained from PSG. See www.psg.coz.za |
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Animated graphic
The animated line graph below shows the average monthly share price for Naspers from November 2007 up to October 2017. While the share price has shown magnificent growth over the years, it is still trading at a discount to the value of their Tencent holding.
For those readers who do not know a lot about Naspers, the following provides some background and insights into the history and operations of the biggest listed share by market cap on the JSE.
According to Nasper's website they define themselves as follows.
Their strategy according to their website:
We believe in the power of local backed by global scale and we look for opportunities to address big societal needs in markets where we see the greatest growth potential. The below image summarises their strategy
- Naspers was founded in 1915 to produce a Dutch newspaper. In the 1920's it added book publishing to its newspaper operations and grew into one of Africa's leading media groups over the next 60 years.
- It then founded Mnet 1985 and the rest as they say is history. This lead to DSTV, online media websites etc in South Africa and acquisitions across the world with their major investmet in Tencent taking place in 2001.
- Naspers is a global interner and entertainment group and one of the largest technology investors in the world.
- Operating in more than 120 countries and markets with long-term growth potential, Naspers builds leading companies that empower people and enrich communities
- The group has sizeable investments in Tencent (SEHK 00700), Mail.ru (LSE: MAIL), MakeMyTrip Limited (NASDAQ:MMYT) and Flipkart. Naspers is listed on the Johannesburg Stock Exchange (NPN.SJ) and has an ADR listing on the London Stock Exchange (LSE: NPSN)
Their strategy according to their website:
We believe in the power of local backed by global scale and we look for opportunities to address big societal needs in markets where we see the greatest growth potential. The below image summarises their strategy
Naspers (NPN) strategy
Their holdings are extremely diverse and spread across the world. Those in South Africa will know their best assets such as DSTV and Mnet, SuperSport, Media24 and Showmax.
While Naspers's biggest single investment is in Chinese internet and entertainment giant, TenCent. Significant growth in Tencent subscribers and earnings over the last number of years have lead to astronomical growth in the share price of Naspers over the last two years.The image below shows Naspers' revenue per segment. As can be seen from the image below the bulk of Naspers' revenue comes from the listed investments (just over 50%) , with video entertainment coming a distant second at 23%.
While Naspers's biggest single investment is in Chinese internet and entertainment giant, TenCent. Significant growth in Tencent subscribers and earnings over the last number of years have lead to astronomical growth in the share price of Naspers over the last two years.The image below shows Naspers' revenue per segment. As can be seen from the image below the bulk of Naspers' revenue comes from the listed investments (just over 50%) , with video entertainment coming a distant second at 23%.
Naspers revenue per segment
While the Naspers share price continues to reach new highs, its market capital is still below the value of their biggest holding (Tencent). So investors buying into Naspers basically gets all their other businesses for free as the price they paying is less than their holding in Tencent is worth.
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