Update shared on 16 Dec 2025
Fair value Increased 2.93%Narrative Update
Analysts have modestly raised their fair value estimate for Mitsubishi Electric from ¥4,089.6 to ¥4,209.6, citing slightly stronger expected revenue growth, improved profit margins, and a higher future P/E multiple.
What's in the News
- Raised full year 2026 revenue guidance to JPY 5,670.0 billion on weaker yen and stronger Infrastructure segment sales, while keeping operating profit forecast unchanged at JPY 430.0 billion (Corporate guidance).
- Completed share repurchases totaling 29,893,600 shares, or 1.44 percent of shares outstanding, for roughly JPY 100 billion under the April 28, 2025 buyback program (Buyback tranche updates).
- Declared an increased interim dividend of JPY 25 per share for fiscal 2026, up JPY 5 year over year, which signals confidence in earnings and cash generation (Dividend increase).
- Unveiled multiple Maisart AI based technologies, including physics embedded AI for equipment degradation, in vehicle intoxication detection systems and high precision contactless vital sign sensors, targeting safety, productivity and health use cases (Product related announcements).
- Expanded sustainability and energy efficiency initiatives through collaborations on high voltage renewable energy power conversion systems and railway energy saving projects in Manila, as well as new high voltage power semiconductor modules aimed at carbon neutrality (Strategic alliances and product related announcements).
Valuation Changes
- Fair Value Estimate has risen slightly to ¥4,209.6 from ¥4,089.6, reflecting modestly improved fundamentals.
- Discount Rate has fallen marginally to 7.21 percent from 7.26 percent, implying a slightly lower required return.
- Revenue Growth assumption has increased slightly to about 3.50 percent from about 3.39 percent annually.
- Net Profit Margin forecast has edged up to about 7.63 percent from about 7.51 percent, indicating modestly better profitability expectations.
- Future P/E multiple has risen slightly to about 21.64x from about 21.45x, supporting a somewhat higher valuation multiple.
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