Update shared on 13 Nov 2025
Fair value Increased 13%Analysts have raised their price target for Tokyo Electron from ¥29,351 to ¥33,307, citing improved revenue growth projections and marginally higher profit margins as key factors supporting the upward revision.
What's in the News
- Tokyo Electron is reportedly involved in a case in which three individuals were indicted in Taiwan for allegedly stealing chip technology from TSMC to support its business efforts (Wall Street Journal).
- The company raised its consolidated earnings guidance for the fiscal year ending March 31, 2026, reflecting higher expectations for net sales, operating income, and net income attributable to owners of parent.
- Tokyo Electron increased its interim dividend for the first half of the fiscal year ending March 31, 2026, to JPY 264 per share, with updated guidance for the year-end dividend as well.
- The company is participating in the newly established ‘JOINT3’ semiconductor consortium with 26 other global companies, aiming to accelerate development of next-generation semiconductor packaging technology.
Valuation Changes
- Fair Value Estimate: Increased from ¥29,351 to ¥33,307, reflecting stronger fundamentals and updated projections.
- Discount Rate: Increased modestly from 8.48% to 8.82%, suggesting a slightly higher required rate of return.
- Revenue Growth: Revised upward from 6.69% to 7.28%, indicating more optimistic sales forecasts.
- Net Profit Margin: Marginally higher, moving from 22.22% to 22.25%.
- Future P/E Ratio: Increased from 25.69x to 28.24x, reflecting stronger growth expectations and higher valuation multiples.
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