Asahi Kasei Valuation

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

Below Fair Value: ASAA (€6.75) is trading below our estimate of fair value (€9.89)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ASAA. This is calculated by dividing ASAA's market cap by their current earnings.
What is ASAA's PE Ratio?
PE Ratio	20.8x
Earnings	JP¥73.21b
Market Cap	JP¥1.52t

ASAA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.8x
Enterprise Value/EBITDA	6.3x
PEG Ratio	1.1x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ASAA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	25.8x
FPE3 Fuchs	19.1x	8.7%	€5.0b
SIM0 SIMONA	10.9x	n/a	€357.0m
EVK Evonik Industries	36x	33.1%	€8.2b
SY1 Symrise	37.3x	13.2%	€14.6b
ASAA Asahi Kasei	20.8x	18.3%	€1.5t

Price-To-Earnings vs Peers: ASAA is good value based on its Price-To-Earnings Ratio (20.8x) compared to the peer average (25.8x).

Price to Earnings Ratio vs Industry

How does ASAA's PE Ratio compare vs other companies in the European Chemicals Industry?

2 Companies	Price / Earnings	Estimated Growth	Market Cap

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: ASAA is expensive based on its Price-To-Earnings Ratio (20.8x) compared to the European Chemicals industry average (17.1x).

Price to Earnings Ratio vs Fair Ratio

What is ASAA'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.

ASAA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	20.8x
Fair PE Ratio	19.2x

Price-To-Earnings vs Fair Ratio: ASAA is expensive based on its Price-To-Earnings Ratio (20.8x) compared to the estimated Fair Price-To-Earnings Ratio (19.2x).

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 ASAA forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	€6.75	€8.00 +18.6%	12.4%	€10.08	€6.78	n/a	11
Nov ’25	€6.76	€7.86 +16.2%	12.4%	€9.65	€6.70	n/a	11
Oct ’25	€6.52	€7.95 +21.9%	14.6%	€10.00	€6.37	n/a	10
Sep ’25	€6.33	€7.77 +22.8%	15.4%	€9.89	€6.31	n/a	10
Aug ’25	€6.23	€7.67 +23.1%	13.5%	€9.28	€6.31	n/a	10
Jul ’25	€5.80	€6.79 +17.0%	10.3%	€8.27	€5.91	n/a	10
Jun ’25	€5.90	€6.74 +14.1%	9.5%	€7.95	€5.89	n/a	10
May ’25	€6.41	€6.78 +5.7%	11.4%	€8.22	€5.91	n/a	10
Apr ’25	€6.60	€6.78 +2.8%	11.4%	€8.22	€5.91	n/a	10
Mar ’25	€6.43	€6.75 +5.1%	10.2%	€8.29	€5.96	n/a	9
Feb ’25	€6.81	€6.83 +0.3%	12.3%	€8.76	€5.82	n/a	9
Jan ’25	€6.47	€6.91 +6.8%	12.5%	€9.03	€6.00	n/a	10
Dec ’24	€6.15	€6.37 +3.6%	12.8%	€8.64	€5.55	n/a	11
Nov ’24	€5.82	€6.32 +8.6%	11.8%	€8.50	€5.67	€6.76	11
Oct ’24	€5.91	€6.35 +7.6%	12.3%	€8.54	€5.70	€6.52	10
Sep ’24	€5.97	€6.38 +6.9%	12.2%	€8.52	€5.62	€6.33	10
Aug ’24	€6.15	€6.53 +6.2%	11.6%	€8.57	€5.65	€6.23	10
Jul ’24	€6.13	€6.75 +10.1%	12.7%	€9.00	€5.93	€5.80	10
Jun ’24	€6.26	€6.66 +6.4%	14.2%	€8.99	€5.19	€5.90	10
May ’24	€6.35	€6.74 +6.3%	13.8%	€8.91	€5.35	€6.41	10
Apr ’24	€6.34	€7.18 +13.3%	13.9%	€9.24	€5.54	€6.60	9
Mar ’24	€6.53	€7.09 +8.6%	11.8%	€9.03	€5.98	€6.43	10
Feb ’24	€6.86	€7.77 +13.2%	17.4%	€11.20	€6.22	€6.81	10
Jan ’24	€6.62	€8.00 +20.8%	17.7%	€11.03	€6.69	€6.47	10
Dec ’23	€7.15	€8.11 +13.3%	15.2%	€10.88	€6.60	€6.15	11
Nov ’23	€6.47	€8.08 +24.9%	17.4%	€11.27	€6.42	€5.82	11

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

Discover undervalued companies

Stanmore Resources

AU$2.8b

Engages in the exploration, development, production, and sale of metallurgical coal in Australia.

S0D

AU$1.88

0.5%

-16.8%

Tokuyama

JP¥197.6b

Produces and sells various chemical products in Japan.

TBT

JP¥16.70

5.0%

16.0%

Mitsubishi Chemical Group

JP¥1.2t

Provides performance products, chemicals, industrial gases, health care products, and other products in Japan and internationally.

M3C

JP¥5.27

2.9%

-8.1%