Mitsubishi Chemical Group Corporation

DB:M3C Stock Report

Market Cap: €7.2b

Mitsubishi Chemical Group Valuation

Is M3C undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • 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 M3C when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: M3C (€5.09) is trading below our estimate of fair value (€10.82)

Significantly Below Fair Value: M3C is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for M3C?

Key metric: As M3C is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for M3C. This is calculated by dividing M3C's market cap by their current earnings.
What is M3C's PE Ratio?
PE Ratio12.8x
EarningsJP¥93.31b
Market CapJP¥1.19t

Price to Earnings Ratio vs Peers

How does M3C's PE Ratio compare to its peers?

The above table shows the PE ratio for M3C vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average42.3x
BAS BASF
76.3x34.2%€37.9b
EVK Evonik Industries
36.2x33.1%€8.3b
FPE3 Fuchs
19.6x8.9%€5.2b
SY1 Symrise
37.2x13.1%€14.6b
M3C Mitsubishi Chemical Group
12.8x18.4%€1.2t

Price-To-Earnings vs Peers: M3C is good value based on its Price-To-Earnings Ratio (12.8x) compared to the peer average (42.3x).

Price to Earnings Ratio vs Industry

How does M3C's PE Ratio compare vs other companies in the European Chemicals Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
M3C 12.8xIndustry Avg. 17.7xNo. of Companies11PE01224364860+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: M3C is good value based on its Price-To-Earnings Ratio (12.8x) compared to the European Chemicals industry average (17.7x).

Price to Earnings Ratio vs Fair Ratio

What is M3C'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.

M3C PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.8x
Fair PE Ratio19.6x

Price-To-Earnings vs Fair Ratio: M3C is good value based on its Price-To-Earnings Ratio (12.8x) 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 M3C forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€5.09
€6.43
+26.2%
12.0%€7.91€5.29n/a10
Nov ’25€4.83
€6.50
+34.6%
11.6%€8.00€5.60n/a10
Oct ’25€5.59
€6.63
+18.6%
12.2%€8.22€5.75n/a10
Sep ’25€5.14
€6.25
+21.6%
11.9%€8.05€5.51n/a10
Aug ’25€5.45
€6.00
+10.2%
7.9%€6.94€5.37n/a10
Jul ’25€5.14
€5.71
+11.0%
9.2%€6.67€4.99n/a9
Jun ’25€5.02
€5.83
+16.0%
8.2%€6.56€4.95n/a9
May ’25€5.28
€5.83
+10.3%
8.2%€6.56€4.95n/a9
Apr ’25€5.50
€5.83
+6.0%
8.2%€6.56€4.95n/a9
Mar ’25€5.17
€5.94
+14.9%
12.6%€7.79€5.04n/a10
Feb ’25€5.46
€6.14
+12.5%
13.2%€7.88€5.19n/a10
Jan ’25€5.67
€6.32
+11.5%
12.9%€8.13€5.35n/a10
Dec ’24€5.78
€5.95
+2.9%
13.0%€7.90€4.95n/a11
Nov ’24€5.61
€5.95
+6.1%
13.0%€7.90€4.95€4.8311
Oct ’24€5.81
€5.85
+0.7%
15.7%€7.98€4.75€5.5910
Sep ’24€5.45
€5.57
+2.1%
12.7%€6.59€4.50€5.1410
Aug ’24€5.34
€5.51
+3.2%
13.3%€6.60€4.51€5.4510
Jul ’24€5.38
€5.50
+2.4%
12.2%€6.63€4.53€5.1410
Jun ’24€5.15
€5.82
+12.9%
16.9%€7.74€4.00€5.0210
May ’24€5.20
€5.84
+12.5%
17.7%€7.73€4.00€5.289
Apr ’24€5.40
€6.08
+12.5%
17.4%€8.11€4.33€5.509
Mar ’24€5.45
€5.93
+8.7%
18.3%€7.99€4.27€5.179
Feb ’24€5.05
€5.52
+9.3%
12.5%€6.50€3.90€5.4610
Jan ’24n/a
€5.45
0%
12.8%€6.76€4.27€5.6710
Dec ’23€5.05
€5.40
+6.8%
12.2%€6.62€4.18€5.7811
Nov ’23€4.52
€5.51
+21.8%
15.3%€6.81€4.08€5.6111

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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