Idemitsu Kosan Co.,Ltd.

DB:I7B Stock Report

Market Cap: €8.3b

Idemitsu KosanLtd Valuation

Is I7B 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 I7B when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: I7B (€6.15) is trading above our estimate of fair value (€6.1)

Significantly Below Fair Value: I7B is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for I7B?

Key metric: As I7B is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for I7B. This is calculated by dividing I7B's market cap by their current earnings.
What is I7B's PE Ratio?
PE Ratio8.2x
EarningsJP¥163.01b
Market CapJP¥1.33t

Price to Earnings Ratio vs Peers

How does I7B's PE Ratio compare to its peers?

The above table shows the PE ratio for I7B vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average35.4x
CE2 CropEnergies
15.3x-7.5%€1.0b
CE2 CropEnergies
82.8xn/a€1.2b
HINDPETRO Hindustan Petroleum
19.2x30.3%₹807.7b
DINO HF Sinclair
24.1x23.6%US$7.9b
I7B Idemitsu KosanLtd
8.2x3.8%€1.3t

Price-To-Earnings vs Peers: I7B is good value based on its Price-To-Earnings Ratio (8.2x) compared to the peer average (35.4x).

Price to Earnings Ratio vs Industry

How does I7B's PE Ratio compare vs other companies in the European Oil and Gas Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
I7B 8.2xIndustry Avg. 9.1xNo. of Companies17PE0612182430+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: I7B is good value based on its Price-To-Earnings Ratio (8.2x) compared to the European Oil and Gas industry average (9.1x).

Price to Earnings Ratio vs Fair Ratio

What is I7B'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.

I7B PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.2x
Fair PE Ratio20.4x

Price-To-Earnings vs Fair Ratio: I7B is good value based on its Price-To-Earnings Ratio (8.2x) compared to the estimated Fair Price-To-Earnings Ratio (20.4x).

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 I7B forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€6.15
€7.23
+17.6%
10.7%€8.54€5.74n/a7
Nov ’25€6.25
€7.07
+13.1%
11.2%€8.41€5.65n/a7
Oct ’25€6.35
€7.49
+17.9%
10.4%€8.97€6.02n/a8
Sep ’25€6.55
€6.90
+5.4%
13.6%€8.66€5.56n/a8
Aug ’25€5.95
€6.31
+6.1%
13.6%€8.03€5.16n/a8
Jul ’25€6.00
€6.56
+9.4%
13.8%€8.32€5.35n/a8
Jun ’25€6.25
€6.19
-1.0%
12.0%€7.24€4.77n/a8
May ’25€6.35
€6.31
-0.6%
12.5%€7.46€4.91n/a8
Apr ’25€6.25
€6.23
-0.3%
12.4%€7.53€4.96n/a8
Mar ’25€6.00
€5.62
-6.4%
17.2%€7.07€3.88n/a8
Feb ’25€5.15
€5.08
-1.4%
17.0%€6.25€3.95n/a7
Jan ’25€4.86
€5.04
+3.7%
16.0%€6.45€4.08n/a7
Dec ’24€5.00
€4.85
-3.1%
17.1%€6.26€3.96n/a8
Nov ’24€4.28
€4.54
+6.2%
13.2%€5.45€3.80€6.258
Oct ’24€4.32
€4.45
+3.0%
13.8%€5.43€3.79€6.358
Sep ’24€4.04
€4.36
+7.9%
11.2%€5.19€3.79€6.558
Aug ’24€3.78
€4.39
+16.0%
10.2%€5.27€3.75€5.958
Jul ’24€3.58
€4.62
+29.1%
20.3%€6.83€3.76€6.008
Jun ’24€3.56
€4.89
+37.3%
19.8%€7.10€3.91€6.258
May ’24€3.76
€5.21
+38.6%
18.3%€7.34€4.15€6.358
Apr ’24€3.90
€5.37
+37.6%
16.3%€7.39€4.40€6.258
Mar ’24€4.16
€5.47
+31.5%
15.4%€7.41€4.42€6.008
Feb ’24€4.44
€5.71
+28.6%
17.3%€7.66€4.03€5.158
Jan ’24€4.24
€5.49
+29.4%
15.4%€6.94€3.88€4.868
Dec ’23€4.40
€5.57
+26.5%
15.5%€6.98€3.89€5.008
Nov ’23€4.36
€5.41
+24.1%
14.8%€6.81€3.80€4.288

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

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