Kao Corporation

DB:KAO Stock Report

Market Cap: €18.0b

Kao Valuation

Is KAO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: KAO (€37.52) is trading above our estimate of fair value (€33.76)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for KAO. This is calculated by dividing KAO's market cap by their current earnings.
What is KAO's PE Ratio?
PE Ratio35.4x
EarningsJP¥82.36b
Market CapJP¥2.92t

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for KAO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average48.9x
BEI Beiersdorf
37.8x12.7%€27.9b
HEN3 Henkel KGaA
18.7x6.5%€31.2b
EL Estée Lauder Companies
112.7x36.0%US$22.9b
PUIG Puig Brands
26.3x15.2%€10.8b
KAO Kao
35.4x12.2%€2.9t

Price-To-Earnings vs Peers: KAO is good value based on its Price-To-Earnings Ratio (35.4x) compared to the peer average (48.9x).

Price to Earnings Ratio vs Industry

How does KAO's PE Ratio compare vs other companies in the European Personal Products Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
KAO 35.4xIndustry Avg. 21.8xNo. of Companies3PE01224364860+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: KAO is expensive based on its Price-To-Earnings Ratio (35.4x) compared to the European Personal Products industry average (21.8x).

Price to Earnings Ratio vs Fair Ratio

What is KAO'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.

KAO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio35.4x
Fair PE Ratio26.3x

Price-To-Earnings vs Fair Ratio: KAO is expensive based on its Price-To-Earnings Ratio (35.4x) compared to the estimated Fair Price-To-Earnings Ratio (26.3x).

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 KAO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€37.52
€44.78
+19.3%
8.7%€51.39€38.54n/a10
Nov ’25€38.81
€44.47
+14.6%
8.7%€51.04€38.28n/a10
Oct ’25€43.29
€46.26
+6.9%
8.2%€52.47€39.35n/a10
Sep ’25€39.95
€45.67
+14.3%
7.6%€49.12€39.17n/a10
Aug ’25€39.68
€41.77
+5.3%
8.6%€46.91€36.48n/a10
Jul ’25€36.75
€41.56
+13.1%
8.2%€47.06€36.60n/a10
Jun ’25€40.07
€41.46
+3.5%
8.0%€47.48€36.93n/a10
May ’25€38.32
€38.23
-0.2%
11.6%€44.40€32.56n/a10
Apr ’25€34.05
€39.57
+16.2%
11.7%€46.47€34.08n/a9
Mar ’25€34.60
€40.82
+18.0%
16.5%€54.28€32.51n/a9
Feb ’25€36.20
€41.06
+13.4%
16.8%€54.78€32.81n/a9
Jan ’25€36.50
€41.75
+14.4%
16.8%€56.75€33.99n/a9
Dec ’24€34.80
€38.65
+11.1%
18.9%€54.54€26.65n/a11
Nov ’24€34.50
€37.89
+9.8%
21.3%€56.01€25.46€38.8111
Oct ’24€34.60
€37.50
+8.4%
21.6%€55.87€25.39€43.2911
Sep ’24€35.40
€36.67
+3.6%
23.4%€55.83€25.38€39.9511
Aug ’24€33.90
€38.71
+14.2%
24.7%€58.59€25.97€39.6811
Jul ’24€32.70
€38.71
+18.4%
24.7%€58.59€25.97€36.7511
Jun ’24€32.65
€39.59
+21.2%
22.1%€58.51€25.93€40.0712
May ’24€36.50
€40.77
+11.7%
21.2%€59.59€26.75€38.3212
Apr ’24€35.12
€42.07
+19.8%
21.7%€61.10€27.43€34.0511
Mar ’24€34.24
€41.46
+21.1%
20.7%€60.61€27.20€34.6012
Feb ’24€35.97
€43.99
+22.3%
19.6%€62.20€28.27€36.2012
Jan ’24€36.69
€42.38
+15.5%
21.7%€61.94€28.15€36.5013
Dec ’23€37.73
€42.87
+13.6%
21.0%€61.78€28.08€34.8014
Nov ’23€36.32
€42.88
+18.1%
19.7%€60.13€27.33€34.5015

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

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