Kobe Steel, Ltd.

DB:KST Stock Report

Market Cap: €3.9b

Kobe Steel Valuation

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

Below Fair Value: KST (€9.37) is trading below our estimate of fair value (€14.1)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for KST. This is calculated by dividing KST's market cap by their current earnings.
What is KST's PE Ratio?
PE Ratio7.5x
EarningsJP¥85.79b
Market CapJP¥639.15b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for KST vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.9x
EIS Eisen- und Hüttenwerke
18.5xn/a€202.4m
NDA Aurubis
9x-6.2%€3.4b
FPE3 Fuchs
19.2x8.9%€5.1b
WCH Wacker Chemie
28.8x37.0%€3.6b
KST Kobe Steel
7.5x2.8%€639.2b

Price-To-Earnings vs Peers: KST is good value based on its Price-To-Earnings Ratio (7.5x) compared to the peer average (18.9x).

Price to Earnings Ratio vs Industry

How does KST's PE Ratio compare vs other companies in the European Metals and Mining Industry?

15 CompaniesPrice / EarningsEstimated GrowthMarket Cap
KST 7.5xIndustry Avg. 11.8xNo. of Companies15PE0816243240+
15 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: KST is good value based on its Price-To-Earnings Ratio (7.5x) compared to the European Metals and Mining industry average (12.4x).

Price to Earnings Ratio vs Fair Ratio

What is KST'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.

KST PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.5x
Fair PE Ratio13.6x

Price-To-Earnings vs Fair Ratio: KST is good value based on its Price-To-Earnings Ratio (7.5x) compared to the estimated Fair Price-To-Earnings Ratio (13.6x).

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 KST forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€9.37
€13.35
+42.5%
16.2%€16.76€11.01n/a5
Nov ’25€9.32
€13.16
+41.3%
16.2%€16.53€10.86n/a5
Oct ’25€10.58
€13.85
+30.9%
15.6%€17.15€11.48n/a5
Sep ’25€10.89
€13.98
+28.4%
12.6%€16.65€11.76n/a5
Aug ’25€10.99
€13.26
+20.7%
11.5%€15.69€11.08n/a6
Jul ’25€11.37
€12.88
+13.3%
10.7%€14.88€11.08n/a6
Jun ’25€11.70
€12.61
+7.9%
12.6%€14.97€9.98n/a6
May ’25€11.23
€12.63
+12.5%
13.6%€15.58€10.39n/a6
Apr ’25€12.30
€12.63
+2.7%
13.6%€15.58€10.39n/a6
Mar ’25€12.50
€12.55
+0.4%
12.4%€14.81€10.18n/a6
Feb ’25€12.60
€12.32
-2.2%
12.6%€15.03€10.33n/a6
Jan ’25€11.40
€11.87
+4.1%
15.5%€14.67€8.86n/a6
Dec ’24€10.60
€11.87
+12.0%
15.5%€14.67€8.86n/a6
Nov ’24€11.20
€12.07
+7.8%
15.3%€15.05€9.09€9.326
Oct ’24€12.10
€11.27
-6.8%
14.3%€13.28€8.22€10.586
Sep ’24€12.30
€10.50
-14.6%
14.9%€12.64€8.22€10.896
Aug ’24€9.95
€8.71
-12.4%
13.5%€10.83€6.94€10.996
Jul ’24€8.20
€8.39
+2.3%
8.4%€9.34€7.02€11.376
Jun ’24€7.35
€8.02
+9.2%
13.9%€9.71€6.36€11.706
May ’24€6.65
€7.17
+7.8%
12.7%€8.88€6.21€11.236
Apr ’24€7.17
€6.94
-3.2%
22.1%€9.17€4.23€12.306
Mar ’24€6.55
€4.85
-26.0%
20.2%€6.30€3.32€12.506
Feb ’24€4.88
€4.65
-4.6%
16.2%€5.66€3.40€12.606
Jan ’24€4.51
€4.65
+3.2%
16.2%€5.66€3.40€11.406
Dec ’23€4.32
€4.59
+6.3%
16.0%€5.62€3.37€10.606
Nov ’23€4.20
€4.83
+15.2%
16.8%€5.65€3.39€11.206

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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