Mitsubishi Gas Chemical Company, Inc.

DB:MUG Stock Report

Market Cap: €3.6b

Mitsubishi Gas Chemical Company Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: MUG (€17.7) is trading below our estimate of fair value (€39.15)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for MUG. This is calculated by dividing MUG's market cap by their current earnings.
What is MUG's PE Ratio?
PE Ratio17.8x
EarningsJP¥32.31b
Market CapJP¥573.95b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MUG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average50.4x
BAS BASF
75.5x34.2%€37.5b
WCH Wacker Chemie
28.3x37.0%€3.5b
FPE3 Fuchs
18.7x8.7%€4.9b
SDF K+S
79.2x61.1%€2.0b
MUG Mitsubishi Gas Chemical Company
17.8x17.9%€574.0b

Price-To-Earnings vs Peers: MUG is good value based on its Price-To-Earnings Ratio (17.8x) compared to the peer average (50.4x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
MUG 17.8xIndustry Avg. 17.3xNo. of Companies12PE01224364860+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MUG is expensive based on its Price-To-Earnings Ratio (17.8x) compared to the European Chemicals industry average (17.3x).

Price to Earnings Ratio vs Fair Ratio

What is MUG'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.

MUG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.8x
Fair PE Ratio17.6x

Price-To-Earnings vs Fair Ratio: MUG is expensive based on its Price-To-Earnings Ratio (17.8x) compared to the estimated Fair Price-To-Earnings Ratio (17.6x).

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 MUG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€17.70
€21.26
+20.1%
12.5%€24.16€16.47n/a9
Nov ’25€15.60
€20.95
+34.3%
12.0%€23.39€16.62n/a8
Oct ’25€17.20
€21.23
+23.4%
13.9%€23.93€15.93n/a8
Sep ’25€16.50
€20.55
+24.5%
12.9%€22.51€15.73n/a8
Aug ’25€16.70
€19.77
+18.4%
12.9%€21.68€15.15n/a8
Jul ’25€17.50
€19.20
+9.7%
12.7%€21.03€14.87n/a8
Jun ’25€16.90
€16.96
+0.4%
18.3%€20.91€12.47n/a8
May ’25€16.20
€16.54
+2.1%
16.5%€21.12€12.73n/a7
Apr ’25€15.00
€16.30
+8.6%
18.6%€21.50€11.67n/a7
Mar ’25€15.10
€15.47
+2.4%
14.6%€18.44€11.68n/a7
Feb ’25€14.70
€15.12
+2.9%
15.6%€18.74€11.87n/a7
Jan ’25€14.00
€15.01
+7.2%
16.0%€19.35€12.25n/a7
Dec ’24€14.00
€14.86
+6.1%
17.8%€19.00€11.65n/a8
Nov ’24€12.60
€14.85
+17.9%
19.7%€19.55€10.09€15.608
Oct ’24€12.40
€15.11
+21.9%
18.6%€19.76€10.20€17.209
Sep ’24€12.40
€15.08
+21.6%
20.1%€20.79€10.08€16.509
Aug ’24€13.40
€15.60
+16.4%
19.0%€21.18€10.91€16.709
Jul ’24€12.90
€15.72
+21.9%
18.6%€22.00€11.33€17.508
Jun ’24€12.70
€15.66
+23.3%
19.6%€22.03€10.68€16.908
May ’24€12.90
€15.94
+23.5%
19.6%€22.25€10.79€16.208
Apr ’24€13.20
€17.11
+29.6%
19.9%€23.46€11.37€15.007
Mar ’24€13.20
€16.20
+22.7%
20.4%€21.54€10.56€15.106
Feb ’24€13.00
€17.10
+31.5%
20.3%€21.86€10.72€14.706
Jan ’24€12.60
€17.68
+40.3%
14.9%€21.55€13.07€14.006
Dec ’23€13.50
€17.68
+31.0%
14.9%€21.55€13.07€14.006
Nov ’23€12.60
€18.05
+43.2%
17.5%€21.78€12.80€12.606

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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