Daikin Industries,Ltd.

WBAG:DKI Stock Report

Market Cap: €33.2b

Daikin IndustriesLtd Valuation

Is DKI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of DKI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DKI (€113.75) is trading below our estimate of fair value (€115.2)

Significantly Below Fair Value: DKI is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DKI?

Key metric: As DKI is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for DKI. This is calculated by dividing DKI's market cap by their current earnings.
What is DKI's PE Ratio?
PE Ratio20.7x
EarningsJP¥258.96b
Market CapJP¥5.36t

Price to Earnings Ratio vs Peers

How does DKI's PE Ratio compare to its peers?

The above table shows the PE ratio for DKI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.2x
ASSA B ASSA ABLOY
24.1x9.5%SEK 369.1b
ANDR Andritz
10.3x8.8%€5.2b
SGO Compagnie de Saint-Gobain
15.2x8.6%€43.7b
LII Lennox International
31.1x7.9%US$23.4b
DKI Daikin IndustriesLtd
20.7x9.5%€5.4t

Price-To-Earnings vs Peers: DKI is expensive based on its Price-To-Earnings Ratio (20.7x) compared to the peer average (20.2x).

Price to Earnings Ratio vs Industry

How does DKI's PE Ratio compare vs other companies in the European Building Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
DKI 20.7xIndustry Avg. 19.9xNo. of Companies13PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: DKI is expensive based on its Price-To-Earnings Ratio (20.7x) compared to the European Building industry average (19.9x).

Price to Earnings Ratio vs Fair Ratio

What is DKI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DKI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.7x
Fair PE Ratio15.6x

Price-To-Earnings vs Fair Ratio: DKI is expensive based on its Price-To-Earnings Ratio (20.7x) compared to the estimated Fair Price-To-Earnings Ratio (15.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst DKI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€113.75
€137.90
+21.2%
11.3%€154.36€111.14n/a15
Nov ’25€112.50
€134.33
+19.4%
11.7%€151.28€108.92n/a15
Oct ’25€123.75
€138.62
+12.0%
10.8%€155.17€117.93n/a15
Sep ’25€115.40
€144.83
+25.5%
11.7%€176.39€117.59n/a15
Aug ’25€129.45
€153.86
+18.9%
13.9%€193.20€117.09n/a15
Jul ’25€127.65
€151.71
+18.9%
14.2%€187.06€116.91n/a15
Jun ’25€134.30
€151.97
+13.2%
15.7%€188.76€109.71n/a14
May ’25€129.20
€147.50
+14.2%
15.8%€188.59€113.16n/a13
Apr ’25€126.55
€153.59
+21.4%
13.8%€189.81€122.46n/a13
Mar ’25€131.45
€155.17
+18.0%
13.1%€191.32€123.43n/a14
Feb ’25€147.20
€166.02
+12.8%
14.3%€217.34€124.20n/a14
Jan ’25€146.20
€175.85
+20.3%
15.6%€230.05€127.81n/a16
Dec ’24€137.05
€172.89
+26.1%
14.4%€225.38€125.21n/a18
Nov ’24€139.90
€182.40
+30.4%
13.2%€227.91€126.62€112.5017
Oct ’24€149.00
€182.40
+22.4%
13.2%€227.91€126.62€123.7517
Sep ’24€161.80
€181.46
+12.1%
13.5%€228.60€127.00€115.4017
Aug ’24€182.55
€190.08
+4.1%
13.7%€230.12€127.84€129.4517
Jul ’24€187.25
€185.00
-1.2%
12.9%€228.04€126.69€127.6518
Jun ’24€184.55
€187.70
+1.7%
11.8%€214.87€134.30€134.3017
May ’24€162.55
€177.77
+9.4%
11.5%€209.82€133.22€129.2017
Apr ’24€163.95
€182.87
+11.5%
11.4%€216.94€137.74€126.5517
Mar ’24€160.80
€181.66
+13.0%
10.3%€213.50€137.74€131.4517
Feb ’24€159.15
€187.02
+17.5%
9.4%€215.59€143.73€147.2017
Jan ’24€143.70
€181.13
+26.0%
10.2%€220.85€138.03€146.2018
Dec ’23€159.20
€186.01
+16.8%
11.1%€224.66€140.42€137.0518
Nov ’23€154.50
€190.55
+23.3%
12.6%€228.43€128.49€139.9018

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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