Sumitomo Chemical Company, Limited

MUN:SMM0 Stock Report

Market Cap: €3.8b

Sumitomo Chemical Company Valuation

Is SMM0 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-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SMM0 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SMM0 (€11.8) is trading below our estimate of fair value (€20.74)

Significantly Below Fair Value: SMM0 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SMM0?

Key metric: As SMM0 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for SMM0. This is calculated by dividing SMM0's market cap by their current revenue.
What is SMM0's PS Ratio?
PS Ratio0.2x
SalesJP¥2.50t
Market CapJP¥611.47b

Price to Sales Ratio vs Peers

How does SMM0's PS Ratio compare to its peers?

The above table shows the PS ratio for SMM0 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.8x
LXS LANXESS
0.3x2.8%€2.0b
BAS BASF
0.6x4.5%€38.0b
WCH Wacker Chemie
0.6x5.2%€3.5b
FPE3 Fuchs
1.6x3.6%€5.1b
SMM0 Sumitomo Chemical Company
0.2x4.5%€611.5b

Price-To-Sales vs Peers: SMM0 is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (0.8x).

Price to Sales Ratio vs Industry

How does SMM0's PS Ratio compare vs other companies in the DE Chemicals Industry?

3 CompaniesPrice / SalesEstimated GrowthMarket Cap
2HRA H&R GmbH KGaA
0.1x3.0%US$132.56m
NSAK OTI Greentech
0.03xn/aUS$594.62k
B7Y Byotrol
0.04xn/aUS$246.97k
No more companies available in this PS range
SMM0 0.2xIndustry Avg. 1.0xNo. of Companies4PS00.40.81.21.62+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: SMM0 is good value based on its Price-To-Sales Ratio (0.2x) compared to the European Chemicals industry average (1x).

Price to Sales Ratio vs Fair Ratio

What is SMM0's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SMM0 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.2x
Fair PS Ratio0.4x

Price-To-Sales vs Fair Ratio: SMM0 is good value based on its Price-To-Sales Ratio (0.2x) compared to the estimated Fair Price-To-Sales Ratio (0.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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