Update shared on 29 Oct 2025
Fair value Increased 5.31%Analysts have raised their price target for Tokyo Electron from ¥27,872 to ¥29,351. They cite expectations for stronger revenue growth and higher profit margins going forward.
What's in the News
- Taiwan prosecutors indicted three individuals accused of stealing advanced chip technology from Taiwan Semiconductor Manufacturing and passing it to Tokyo Electron to enhance its etching machines and win more business (Wall Street Journal).
- Tokyo Electron joined a consortium led by Resonac Corporation to jointly develop panel-level organic interposers, a next-generation semiconductor packaging technology. The launch of a prototype production line is scheduled for 2026.
- The company revised its earnings forecast downward for the fiscal year ending March 31, 2026, projecting lower net sales, operating income, and net income compared to prior guidance.
- Year-end dividend guidance was revised to JPY 240.00 per share, down from the previously expected JPY 373.00 per share.
- Tokyo Electron’s board decided to continue the stock delivery program for company officers in Japan and abroad.
Valuation Changes
- Fair Value Estimate: Increased moderately from ¥27,872 to ¥29,351.
- Discount Rate: Slightly higher, now at 8.48% compared to 8.44% previously.
- Revenue Growth: Projected to rise, with expectations moving from 6.22% to 6.69%.
- Net Profit Margin: Forecast to improve modestly, increasing from 21.99% to 22.22%.
- Future Price-to-Earnings Ratio: Expected to increase from 24.97x to 25.69x.
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