Nissin Foods Holdings Co.,Ltd.

DB:NF2 Stock Report

Market Cap: €7.6b

Nissin Foods HoldingsLtd Valuation

Is NF2 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 NF2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NF2 (€25.4) is trading below our estimate of fair value (€36.54)

Significantly Below Fair Value: NF2 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for NF2?

Key metric: As NF2 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for NF2. This is calculated by dividing NF2's market cap by their current earnings.
What is NF2's PE Ratio?
PE Ratio23.4x
EarningsJP¥51.21b
Market CapJP¥1.20t

Price to Earnings Ratio vs Peers

How does NF2's PE Ratio compare to its peers?

The above table shows the PE ratio for NF2 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average10.7x
SZU Südzucker
6.5x-10.2%€2.2b
SSH Südwestdeutsche Salzwerke
14.8xn/a€588.4m
NLM FRoSTA
11.7xn/a€398.5m
KWS KWS SAAT SE KGaA
9.6x1.2%€1.9b
NF2 Nissin Foods HoldingsLtd
23.4x5.1%€1.2t

Price-To-Earnings vs Peers: NF2 is expensive based on its Price-To-Earnings Ratio (23.4x) compared to the peer average (10.7x).


Price to Earnings Ratio vs Industry

How does NF2's PE Ratio compare vs other companies in the European Food Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
NF2 23.4xIndustry Avg. 13.3xNo. of Companies21PE01020304050+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: NF2 is expensive based on its Price-To-Earnings Ratio (23.4x) compared to the European Food industry average (13.3x).


Price to Earnings Ratio vs Fair Ratio

What is NF2'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.

NF2 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.4x
Fair PE Ratio19.6x

Price-To-Earnings vs Fair Ratio: NF2 is expensive based on its Price-To-Earnings Ratio (23.4x) compared to the estimated Fair Price-To-Earnings Ratio (19.6x).


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 NF2 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€25.40
€31.10
+22.5%
11.3%€35.97€24.81n/a10
Dec ’25€25.00
€31.10
+24.4%
11.3%€35.97€24.81n/a10
Nov ’25€24.40
€31.28
+28.2%
12.0%€36.17€24.11n/a10
Oct ’25€25.00
€32.21
+28.9%
11.8%€36.69€24.88n/a10
Sep ’25€24.00
€32.40
+35.0%
12.3%€36.55€24.78n/a10
Aug ’25€27.00
€31.40
+16.3%
10.7%€36.26€25.73n/a10
Jul ’25€23.40
€30.85
+31.9%
10.6%€35.76€25.38n/a10
Jun ’25€23.20
€32.29
+39.2%
9.5%€36.50€25.90n/a11
May ’25€25.00
€34.07
+36.3%
9.8%€40.48€28.21n/a11
Apr ’25€25.40
€34.70
+36.6%
10.5%€41.04€28.60n/a10
Mar ’25€26.80
€34.89
+30.2%
9.1%€40.61€28.31n/a9
Feb ’25€29.80
€35.57
+19.4%
7.5%€41.09€31.13n/a9
Jan ’25€31.20
€35.83
+14.8%
6.3%€38.69€32.24n/a9
Dec ’24€30.50
€33.10
+8.5%
11.8%€37.56€26.09€25.0010
Nov ’24€27.67
€30.94
+11.8%
8.2%€34.14€26.50€24.4010
Oct ’24€26.00
€29.66
+14.1%
9.4%€33.78€26.39€25.008
Sep ’24€26.17
€29.28
+11.9%
9.1%€33.84€26.43€24.009
Aug ’24€25.67
€28.25
+10.1%
8.9%€32.18€24.35€27.009
Jul ’24€25.00
€28.25
+13.0%
8.9%€32.18€24.35€23.409
Jun ’24€27.00
€28.92
+7.1%
10.6%€33.93€24.55€23.209
May ’24€29.50
€29.34
-0.5%
9.0%€34.42€24.91€25.009
Apr ’24€27.17
€29.33
+8.0%
8.5%€33.20€25.20€25.409
Mar ’24€25.50
€28.72
+12.6%
10.7%€33.55€24.70€26.8011
Feb ’24€23.33
€27.23
+16.7%
10.0%€31.81€23.56€29.8011
Jan ’24€24.00
€26.69
+11.2%
8.6%€31.06€23.01€31.2012
Dec ’23€23.83
€26.87
+12.8%
8.9%€31.59€22.23€30.5012

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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