Hitachi Valuation

Is HIA1 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 HIA1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HIA1 (€23.57) is trading below our estimate of fair value (€30.92)

Significantly Below Fair Value: HIA1 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for HIA1?

Other financial metrics that can be useful for relative valuation.

HIA1 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2x
Enterprise Value/EBITDA14.6x
PEG Ratio2.6x

Price to Earnings Ratio vs Peers

How does HIA1's PE Ratio compare to its peers?

The above table shows the PE ratio for HIA1 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.8x
SIE Siemens
17.9x5.5%€142.5b
INH INDUS Holding
8.6x13.0%€583.0m
MBB MBB
24x23.1%€580.8m
ENR Siemens Energy
44.6x21.3%€25.7b
HIA1 Hitachi
26.7x10.1%€18.5t

Price-To-Earnings vs Peers: HIA1 is expensive based on its Price-To-Earnings Ratio (26.7x) compared to the peer average (23.8x).


Price to Earnings Ratio vs Industry

How does HIA1's PE Ratio compare vs other companies in the European Industrials Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.5%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.5%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: HIA1 is expensive based on its Price-To-Earnings Ratio (26.7x) compared to the European Industrials industry average (16.8x).


Price to Earnings Ratio vs Fair Ratio

What is HIA1'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.

HIA1 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26.7x
Fair PE Ratio26x

Price-To-Earnings vs Fair Ratio: HIA1 is expensive based on its Price-To-Earnings Ratio (26.7x) compared to the estimated Fair Price-To-Earnings Ratio (26x).


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 HIA1 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€23.57
€25.95
+10.1%
11.7%€30.29€18.81n/a15
Sep ’25€22.00
€25.79
+17.2%
11.8%€30.12€18.63n/a14
Aug ’25€20.46
€24.53
+19.9%
13.9%€29.90€18.50n/a14
Jul ’25€21.51
€20.47
-4.9%
14.4%€24.81€13.00n/a14
Jun ’25€19.00
€18.48
-2.8%
15.9%€20.79€10.34n/a14
May ’25€17.26
€17.63
+2.2%
16.0%€20.79€10.45n/a14
Apr ’25€16.82
€16.15
-4.0%
19.1%€20.70€10.91n/a14
Mar ’25€15.75
€15.65
-0.7%
16.4%€20.39€10.87n/a15
Feb ’25€14.62
€15.47
+5.8%
15.0%€19.49€11.07n/a15
Jan ’25€13.12
€14.58
+11.2%
13.5%€17.22€10.00n/a15
Dec ’24€12.82
€13.86
+8.1%
13.9%€16.70€9.70n/a15
Nov ’24€12.08
€13.65
+12.9%
12.9%€16.45€10.00n/a15
Oct ’24€11.65
€13.14
+12.8%
14.9%€16.46€9.12n/a15
Sep ’24€12.61
€12.97
+2.8%
14.4%€16.45€9.11€22.0015
Aug ’24€11.92
€11.99
+0.6%
13.1%€14.02€8.62€20.4615
Jul ’24€11.31
€11.49
+1.6%
13.2%€13.85€8.51€21.5115
Jun ’24€10.70
€11.64
+8.9%
10.9%€13.39€8.97€19.0015
May ’24€9.94
€11.65
+17.1%
10.7%€13.55€9.08€17.2615
Apr ’24€9.88
€11.85
+19.9%
11.3%€13.89€8.75€16.8214
Mar ’24€9.48
€11.75
+24.0%
10.1%€13.14€8.81€15.7514
Feb ’24€9.42
€11.75
+24.8%
11.1%€13.28€8.90€14.6214
Jan ’24€9.42
€11.57
+22.9%
11.1%€13.80€8.00€13.1213
Dec ’23€10.24
€11.57
+13.0%
11.1%€13.80€8.00€12.8213
Nov ’23€9.49
€11.18
+17.9%
11.5%€13.62€7.90€12.0814
Oct ’23€8.64
€11.84
+37.1%
11.6%€14.28€8.28€11.6514
Sep ’23€9.90
€12.21
+23.3%
10.8%€14.67€8.95€12.6114

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


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