Update shared on 18 Nov 2025
Fair value Increased 7.21%Narrative Update on Mitsubishi Electric: Analyst Price Target Revision
Analysts have raised their fair value estimate for Mitsubishi Electric from ¥3,668 to ¥3,933. This revision is attributed to slightly improved revenue growth and profit margins, while changes in discount rates and future price-to-earnings expectations have remained minor.
What's in the News
- Mitsubishi Electric completed a share buyback program, repurchasing over 29.8 million shares for approximately ¥100 billion as announced in April 2025 (Key Developments).
- Declared an interim dividend of JPY 25 per share for the fiscal year ending March 31, 2026, representing a JPY 5 increase year over year (Key Developments).
- Raised revenue guidance for the fiscal year ending March 31, 2026 to JPY 5,670.0 billion, citing positive exchange rate impacts and infrastructure segment sales growth, while keeping the operating profit forecast unchanged (Key Developments).
- Entered a strategic alliance with the University of Sydney and others to develop a thermal comfort index aimed at improving well-being in office environments (Key Developments).
- Announced the CielVision aerial display system, leveraging new proprietary digital-optical technology to create high-definition images projected in mid-air (Key Developments).
Valuation Changes
- Fair Value Estimate has risen from ¥3,668 to ¥3,933, reflecting a modest upward revision.
- Discount Rate increased marginally from 7.25% to 7.28%.
- Revenue Growth expectation has improved slightly, moving from 3.03% to 3.31%.
- Net Profit Margin is up from 7.18% to 7.47%, indicating an expectation of better profitability.
- Future P/E multiple has decreased from 21.44x to 20.80x. This suggests a modest reduction in valuation multiples.
Disclaimer
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