MEGMILK SNOW BRAND Co.,Ltd.

DB:6MG Stock Report

Market Cap: €1.1b

MEGMILK SNOW BRANDLtd Valuation

Is 6MG 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 6MG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6MG (€16.1) is trading below our estimate of fair value (€22.15)

Significantly Below Fair Value: 6MG is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6MG?

Key metric: As 6MG is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 6MG. This is calculated by dividing 6MG's market cap by their current earnings.
What is 6MG's PE Ratio?
PE Ratio8.7x
EarningsJP¥20.87b
Market CapJP¥180.95b

Price to Earnings Ratio vs Peers

How does 6MG's PE Ratio compare to its peers?

The above table shows the PE ratio for 6MG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average9.9x
SSH Südwestdeutsche Salzwerke
14.8xn/a€625.2m
SZU Südzucker
6.8x-10.2%€2.3b
NLM FRoSTA
11.9xn/a€415.6m
SMB Schwälbchen Molkerei Jakob Berz
6.2xn/a€51.9m
6MG MEGMILK SNOW BRANDLtd
8.7x-4.3%€180.9b

Price-To-Earnings vs Peers: 6MG is good value based on its Price-To-Earnings Ratio (8.7x) compared to the peer average (9.9x).

Price to Earnings Ratio vs Industry

How does 6MG's PE Ratio compare vs other companies in the European Food Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
6MG 8.7xIndustry Avg. 13.2xNo. of Companies17PE0816243240+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 6MG is good value based on its Price-To-Earnings Ratio (8.7x) compared to the European Food industry average (13.3x).

Price to Earnings Ratio vs Fair Ratio

What is 6MG'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.

6MG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.7x
Fair PE Ratio14x

Price-To-Earnings vs Fair Ratio: 6MG is good value based on its Price-To-Earnings Ratio (8.7x) compared to the estimated Fair Price-To-Earnings Ratio (14x).

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 6MG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€16.50
€17.04
+3.3%
12.5%€19.78€14.61n/a3
Nov ’25€15.20
€17.49
+15.0%
12.5%€20.30€14.99n/a3
Oct ’25€16.60
€17.49
+5.3%
12.5%€20.30€14.99n/a3
Sep ’25€16.00
€17.49
+9.3%
12.5%€20.30€14.99n/a3
Aug ’25€16.90
€16.77
-0.8%
12.5%€19.47€14.38n/a3
Jul ’25€14.90
€15.67
+5.2%
9.1%€17.30€13.84n/a3
Jun ’25€14.50
€15.55
+7.3%
9.6%€17.69€14.15n/a4
May ’25€14.80
€16.05
+8.4%
9.6%€18.26€14.60n/a4
Apr ’25€16.00
€15.83
-1.1%
10.1%€18.59€14.87n/a4
Mar ’25€13.40
€14.99
+11.9%
1.7%€15.42€14.80n/a4
Feb ’25€14.40
€14.61
+1.5%
15.1%€16.66€10.89n/a4
Jan ’25€13.30
€14.61
+9.8%
15.1%€16.66€10.89n/a4
Dec ’24€13.10
€14.43
+10.2%
15.4%€16.28€10.64n/a4
Nov ’24€14.90
€13.85
-7.0%
17.4%€16.52€10.80€15.204
Oct ’24€14.30
€13.85
-3.1%
17.4%€16.52€10.80€16.604
Sep ’24€15.00
€13.00
-13.3%
16.2%€16.45€10.75€16.004
Aug ’24€12.40
€12.06
-2.8%
5.9%€12.83€10.90€16.904
Jul ’24€12.20
€11.87
-2.7%
11.0%€13.39€9.97€14.904
Jun ’24€12.50
€11.87
-5.1%
11.0%€13.39€9.97€14.504
May ’24€12.90
€11.78
-8.7%
8.5%€13.13€10.30€14.804
Apr ’24€12.00
€11.78
-1.8%
8.5%€13.13€10.30€16.004
Mar ’24€12.10
€12.28
+1.5%
9.6%€13.30€10.43€13.404
Feb ’24€12.50
€12.68
+1.5%
9.6%€13.73€10.77€14.404
Jan ’24€12.40
€12.13
-2.1%
10.5%€13.39€10.50€13.304
Dec ’23€11.80
€11.57
-2.0%
9.2%€13.16€10.25€13.104
Nov ’23€10.70
€11.64
+8.8%
9.2%€13.25€10.32€14.904

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

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