Mitsubishi Motors Corporation

DB:MMO Stock Report

Market Cap: €4.0b

Mitsubishi Motors Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: MMO (€2.68) is trading below our estimate of fair value (€5.01)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for MMO. This is calculated by dividing MMO's market cap by their current earnings.
What is MMO's PE Ratio?
PE Ratio5.2x
EarningsJP¥125.17b
Market CapJP¥650.63b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MMO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average6.2x
PAH3 Porsche Automobil Holding
2.7x18.5%€10.6b
BMW Bayerische Motoren Werke
5.3x5.6%€43.2b
VOW3 Volkswagen
3.3x9.6%€42.1b
P911 Dr. Ing. h.c. F. Porsche
13.5x11.3%€54.0b
MMO Mitsubishi Motors
5.2x2.0%€650.6b

Price-To-Earnings vs Peers: MMO is good value based on its Price-To-Earnings Ratio (5.2x) compared to the peer average (6.3x).

Price to Earnings Ratio vs Industry

How does MMO's PE Ratio compare vs other companies in the Global Auto Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
MMO 5.2xIndustry Avg. 15.6xNo. of Companies13PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MMO is good value based on its Price-To-Earnings Ratio (5.2x) compared to the Global Auto industry average (15.7x).

Price to Earnings Ratio vs Fair Ratio

What is MMO'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.

MMO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.2x
Fair PE Ratio6.4x

Price-To-Earnings vs Fair Ratio: MMO is good value based on its Price-To-Earnings Ratio (5.2x) compared to the estimated Fair Price-To-Earnings Ratio (6.4x).

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 MMO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€2.68
€2.78
+3.8%
14.5%€3.36€2.22n/a12
Nov ’25€2.75
€2.78
+1.4%
14.5%€3.36€2.22n/a12
Oct ’25€2.42
€2.91
+20.1%
15.4%€3.79€2.30n/a12
Sep ’25€2.58
€3.03
+17.6%
12.4%€3.78€2.48n/a12
Aug ’25€2.59
€2.99
+15.4%
9.8%€3.61€2.61n/a12
Jul ’25€2.62
€2.95
+12.9%
13.6%€3.97€2.41n/a12
Jun ’25€2.55
€3.00
+17.5%
12.7%€3.97€2.41n/a12
May ’25€2.93
€3.18
+8.6%
10.5%€4.10€2.73n/a12
Apr ’25€2.99
€3.16
+5.7%
11.2%€4.12€2.68n/a12
Mar ’25€2.83
€3.25
+15.0%
13.3%€4.14€2.70n/a12
Feb ’25€2.91
€3.44
+18.2%
12.0%€4.24€2.89n/a13
Jan ’25€2.83
€3.60
+27.5%
12.8%€4.64€2.92n/a13
Dec ’24€3.00
€3.82
+27.5%
12.1%€4.96€3.28n/a13
Nov ’24€3.07
€3.91
+27.3%
12.5%€5.06€3.35€2.7513
Oct ’24€4.09
€3.92
-4.1%
11.9%€5.08€3.36€2.4213
Sep ’24€3.56
€3.84
+7.7%
12.0%€5.07€3.36€2.5813
Aug ’24€3.78
€3.73
-1.3%
13.6%€5.11€3.19€2.5913
Jul ’24€3.16
€3.44
+8.8%
5.3%€3.80€3.17€2.6212
Jun ’24€2.97
€3.80
+28.0%
13.0%€5.37€3.36€2.5513
May ’24€3.44
€3.90
+13.3%
13.6%€5.46€3.28€2.9313
Apr ’24€3.58
€4.03
+12.4%
13.9%€5.65€3.39€2.9912
Mar ’24€3.79
€3.91
+3.1%
15.1%€5.53€3.04€2.8312
Feb ’24€3.61
€3.97
+10.1%
16.2%€5.65€3.11€2.9111
Jan ’24€3.60
€4.20
+16.7%
15.7%€5.69€3.13€2.8312
Dec ’23€4.37
€4.12
-5.9%
15.6%€5.62€3.09€3.0013
Nov ’23€3.42
€3.57
+4.5%
11.0%€4.08€2.99€3.0714

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

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