Bridgestone Corporation

DB:BGT Stock Report

Market Cap: €22.9b

Bridgestone Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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 BGT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BGT (€32.99) is trading below our estimate of fair value (€53.57)

Significantly Below Fair Value: BGT is trading below fair value by more than 20%.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for BGT. This is calculated by dividing BGT's market cap by their current earnings.
What is BGT's PE Ratio?
PE Ratio11.7x
EarningsJP¥313.72b
Market CapJP¥3.68t

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for BGT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average12.5x
CON Continental
12.3x23.4%€12.4b
HLE HELLA GmbH KGaA
29x17.1%€9.6b
VOW3 Volkswagen
3.3x9.6%€41.0b
BMW Bayerische Motoren Werke
5.3x3.9%€42.7b
BGT Bridgestone
11.7x11.3%€3.7t

Price-To-Earnings vs Peers: BGT is good value based on its Price-To-Earnings Ratio (11.7x) compared to the peer average (12.5x).

Price to Earnings Ratio vs Industry

How does BGT's PE Ratio compare vs other companies in the European Auto Components Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
BGT 11.7xIndustry Avg. 9.1xNo. of Companies9PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BGT is expensive based on its Price-To-Earnings Ratio (11.7x) compared to the European Auto Components industry average (9.1x).

Price to Earnings Ratio vs Fair Ratio

What is BGT'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.

BGT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.7x
Fair PE Ratio8.3x

Price-To-Earnings vs Fair Ratio: BGT is expensive based on its Price-To-Earnings Ratio (11.7x) compared to the estimated Fair Price-To-Earnings Ratio (8.3x).

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 BGT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€33.15
€39.02
+17.7%
6.7%€43.65€34.30n/a12
Nov ’25€32.86
€38.41
+16.9%
7.2%€44.08€33.67n/a12
Oct ’25€35.20
€40.29
+14.5%
8.9%€47.40€34.76n/a12
Sep ’25€35.06
€40.45
+15.4%
8.5%€47.35€35.51n/a12
Aug ’25€35.65
€39.30
+10.2%
9.3%€46.11€33.27n/a12
Jul ’25€36.03
€39.94
+10.8%
7.4%€46.00€34.36n/a12
Jun ’25€39.90
€39.96
+0.2%
7.1%€45.13€34.58n/a11
May ’25€41.20
€41.11
-0.2%
6.6%€46.74€35.81n/a11
Apr ’25€40.79
€40.19
-1.5%
8.5%€46.76€35.83n/a11
Mar ’25€39.28
€39.78
+1.3%
9.0%€44.86€33.19n/a11
Feb ’25€39.69
€39.61
-0.2%
7.5%€44.12€33.56n/a12
Jan ’25€36.98
€40.73
+10.2%
8.5%€45.79€34.82n/a12
Dec ’24€37.48
€38.50
+2.7%
8.1%€43.31€33.41n/a13
Nov ’24€36.46
€39.29
+7.8%
8.1%€44.53€34.35€32.8613
Oct ’24€36.53
€38.49
+5.4%
7.0%€42.50€34.26€35.2012
Sep ’24€35.62
€37.79
+6.1%
7.2%€42.20€32.12€35.0612
Aug ’24€37.17
€39.34
+5.8%
7.6%€43.93€33.44€35.6512
Jul ’24€37.33
€38.16
+2.2%
6.1%€41.68€33.21€36.0311
Jun ’24€36.90
€37.59
+1.9%
5.8%€41.12€33.82€39.9011
May ’24€35.85
€38.10
+6.3%
5.6%€41.81€34.67€41.2011
Apr ’24€36.81
€38.38
+4.3%
7.0%€42.99€34.25€40.7911
Mar ’24€35.68
€36.91
+3.5%
6.9%€41.32€33.40€39.2810
Feb ’24€33.75
€38.22
+13.2%
6.1%€43.15€35.24€39.6910
Jan ’24€33.08
€38.16
+15.4%
7.5%€44.93€34.40€36.9810
Dec ’23€35.94
€38.16
+6.2%
7.5%€44.93€34.40€37.4810
Nov ’23€36.27
€37.71
+4.0%
8.2%€43.26€33.65€36.4611

Analyst Forecast: Target price is less than 20% higher than the current share price.

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