Sekisui House Valuation

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

Below Fair Value: SPH (€21.8) is trading above our estimate of fair value (€12.18)

Significantly Below Fair Value: SPH is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SPH. This is calculated by dividing SPH's market cap by their current earnings.
What is SPH's PE Ratio?
PE Ratio	9.8x
Earnings	JP¥232.81b
Market Cap	JP¥2.29t

SPH 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/Revenue	1x
Enterprise Value/EBITDA	11x
PEG Ratio	1.7x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SPH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	37.2x
PUM PUMA	25.4x	18.6%	€6.5b
ADS adidas	100.5x	38.1%	€38.3b
TOL Toll Brothers	10.3x	1.8%	US$15.9b
BOSS Hugo Boss	12.6x	13.1%	€2.7b
SPH Sekisui House	9.8x	5.9%	€2.3t

Price-To-Earnings vs Peers: SPH is good value based on its Price-To-Earnings Ratio (9.8x) compared to the peer average (37.2x).

Price to Earnings Ratio vs Industry

How does SPH's PE Ratio compare vs other companies in the European Consumer Durables Industry?

5 Companies	Price / Earnings	Estimated Growth	Market Cap

5 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: SPH is good value based on its Price-To-Earnings Ratio (9.8x) compared to the European Consumer Durables industry average (12.4x).

Price to Earnings Ratio vs Fair Ratio

What is SPH'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.

SPH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	9.8x
Fair PE Ratio	18.1x

Price-To-Earnings vs Fair Ratio: SPH is good value based on its Price-To-Earnings Ratio (9.8x) compared to the estimated Fair Price-To-Earnings Ratio (18.1x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.