Suntory Beverage & Food Limited

DB:7SN Stock Report

Market Cap: €9.8b

Suntory Beverage & Food Valuation

Is 7SN 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 7SN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 7SN (€30.68) is trading below our estimate of fair value (€70.16)

Significantly Below Fair Value: 7SN is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 7SN?

Key metric: As 7SN is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 7SN. This is calculated by dividing 7SN's market cap by their current earnings.
What is 7SN's PE Ratio?
PE Ratio15.8x
EarningsJP¥98.83b
Market CapJP¥1.56t

Price to Earnings Ratio vs Peers

How does 7SN's PE Ratio compare to its peers?

The above table shows the PE ratio for 7SN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average12.7x
MUT Mineralbrunnen Überkingen-Teinach GmbH KGaA
11.9xn/a€103.8m
SZU Südzucker
6.7x-10.2%€2.2b
KWS KWS SAAT SE KGaA
9.8x-1.0%€1.9b
COKE Coca-Cola Consolidated
22.2xn/aUS$11.4b
7SN Suntory Beverage & Food
15.8x4.3%€1.6t

Price-To-Earnings vs Peers: 7SN is expensive based on its Price-To-Earnings Ratio (15.8x) compared to the peer average (12.7x).

Price to Earnings Ratio vs Industry

How does 7SN's PE Ratio compare vs other companies in the European Beverage Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
7SN 15.8xIndustry Avg. 17.0xNo. of Companies7PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 7SN is good value based on its Price-To-Earnings Ratio (15.8x) compared to the European Beverage industry average (17.3x).

Price to Earnings Ratio vs Fair Ratio

What is 7SN'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.

7SN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.8x
Fair PE Ratio19.8x

Price-To-Earnings vs Fair Ratio: 7SN is good value based on its Price-To-Earnings Ratio (15.8x) compared to the estimated Fair Price-To-Earnings Ratio (19.8x).

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 7SN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€30.82
€37.68
+22.2%
10.4%€43.26€31.07n/a9
Nov ’25€30.10
€38.45
+27.8%
10.4%€44.16€31.72n/a9
Oct ’25€34.48
€38.45
+11.5%
10.4%€44.16€31.72n/a9
Sep ’25€32.54
€38.41
+18.0%
10.4%€43.94€31.56n/a9
Aug ’25€31.10
€36.79
+18.3%
11.6%€45.08€31.03n/a9
Jul ’25€32.14
€36.30
+12.9%
11.7%€44.41€30.57n/a9
Jun ’25€32.98
€35.10
+6.4%
10.1%€41.01€31.05n/a10
May ’25€29.56
€35.48
+20.0%
9.5%€42.60€31.03n/a10
Apr ’25€30.80
€35.43
+15.0%
10.8%€43.13€30.81n/a9
Mar ’25€29.60
€35.30
+19.3%
8.7%€40.73€30.86n/a10
Feb ’25€30.00
€35.46
+18.2%
8.5%€41.06€31.11n/a10
Jan ’25€30.00
€36.50
+21.7%
7.9%€41.96€32.43n/a10
Dec ’24€28.20
€35.49
+25.8%
7.2%€39.53€32.12n/a11
Nov ’24€28.60
€36.60
+28.0%
7.2%€40.71€33.08€30.1011
Oct ’24€28.40
€36.52
+28.6%
7.9%€40.54€32.93€34.489
Sep ’24€29.60
€36.51
+23.3%
9.5%€40.69€30.17€32.5410
Aug ’24€31.60
€37.45
+18.5%
9.0%€41.17€30.53€31.1010
Jul ’24€32.80
€37.45
+14.2%
9.0%€41.17€30.53€32.1410
Jun ’24€34.80
€38.51
+10.7%
8.7%€42.85€32.27€32.9810
May ’24€33.80
€37.79
+11.8%
7.8%€41.60€32.87€29.5610
Apr ’24€33.98
€38.46
+13.2%
6.8%€42.25€33.94€30.8010
Mar ’24€32.94
€37.20
+12.9%
8.5%€41.51€30.44€29.6012
Feb ’24€30.36
€38.11
+25.5%
8.1%€42.41€31.10€30.0012
Jan ’24€31.66
€39.70
+25.4%
7.6%€44.85€34.17€30.0013
Dec ’23€31.86
€39.25
+23.2%
6.8%€43.79€35.45€28.2013
Nov ’23€33.72
€38.67
+14.7%
5.8%€42.74€34.60€28.6013

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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