Sumitomo Bakelite Company Limited

MUN:SZ8 Stock Report

Market Cap: €2.1b

Sumitomo Bakelite Valuation

Is SZ8 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 SZ8 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SZ8 (€22.6) is trading below our estimate of fair value (€27.51)

Significantly Below Fair Value: SZ8 is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SZ8?

Key metric: As SZ8 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SZ8. This is calculated by dividing SZ8's market cap by their current earnings.
What is SZ8's PE Ratio?
PE Ratio14.6x
EarningsJP¥23.50b
Market CapJP¥343.98b

Price to Earnings Ratio vs Peers

How does SZ8's PE Ratio compare to its peers?

The above table shows the PE ratio for SZ8 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average28.5x
WCH Wacker Chemie
28.9x37.0%€3.6b
ACT AlzChem Group
11.9x12.6%€594.3m
EVK Evonik Industries
36x33.1%€8.2b
SY1 Symrise
37.3x13.2%€14.6b
SZ8 Sumitomo Bakelite
14.6x8.7%€344.0b

Price-To-Earnings vs Peers: SZ8 is good value based on its Price-To-Earnings Ratio (14.6x) compared to the peer average (28.5x).

Price to Earnings Ratio vs Industry

How does SZ8's PE Ratio compare vs other companies in the European Chemicals Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SZ8 14.6xIndustry Avg. 17.1xNo. of Companies12PE01224364860+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SZ8 is good value based on its Price-To-Earnings Ratio (14.6x) compared to the European Chemicals industry average (17.1x).

Price to Earnings Ratio vs Fair Ratio

What is SZ8'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.

SZ8 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.6x
Fair PE Ratio14.3x

Price-To-Earnings vs Fair Ratio: SZ8 is expensive based on its Price-To-Earnings Ratio (14.6x) compared to the estimated Fair Price-To-Earnings Ratio (14.3x).

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 SZ8 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€22.60
€30.03
+32.9%
8.9%€33.49€25.43n/a6
Nov ’25€23.40
€30.19
+29.0%
9.0%€33.10€25.13n/a6
Oct ’25€25.20
€29.97
+18.9%
13.2%€34.13€23.70n/a6
Sep ’25€23.80
€30.21
+26.9%
12.9%€33.65€23.81n/a6
Aug ’25€24.80
€29.10
+17.3%
11.2%€31.75€22.46n/a6
Jul ’25€26.60
€28.80
+8.3%
11.4%€31.90€22.15n/a6
Jun ’25€25.20
€28.01
+11.2%
12.9%€32.38€22.08n/a6
May ’25€26.20
€28.06
+7.1%
14.0%€33.68€22.96n/a6
Apr ’25€28.20
€28.06
-0.5%
14.0%€33.68€22.96n/a6
Mar ’25€27.00
€25.61
-5.1%
5.1%€27.24€23.48n/a5
Feb ’25€22.90
€24.64
+7.6%
5.9%€27.06€23.33n/a5
Jan ’25€23.40
€25.15
+7.5%
3.8%€26.44€24.18n/a5
Dec ’24€22.00
€22.47
+2.1%
10.0%€24.56€18.11n/a5
Nov ’24€20.80
€22.71
+9.2%
10.1%€25.38€19.98€23.405
Oct ’24€20.40
€22.71
+11.3%
10.1%€25.38€19.98€25.205
Sep ’24€21.80
€21.44
-1.6%
13.7%€25.38€17.76€23.805
Aug ’24€19.60
€20.63
+5.3%
9.0%€23.00€17.89€24.805
Jul ’24€18.80
€20.25
+7.7%
7.4%€22.79€18.24€26.605
Jun ’24€18.80
€20.27
+7.8%
6.9%€22.30€18.58€25.205
May ’24€17.20
€19.89
+15.6%
6.6%€21.88€18.23€26.204
Apr ’24€17.60
€20.49
+16.4%
6.5%€22.85€19.04€28.205
Mar ’24€16.40
€20.73
+26.4%
6.9%€23.19€18.98€27.005
Feb ’24€14.60
€21.29
+45.8%
7.8%€23.81€19.48€22.904
Jan ’24€13.70
€21.59
+57.6%
8.1%€23.74€19.27€23.404
Dec ’23€15.40
€22.52
+46.2%
9.7%€24.98€19.70€22.004
Nov ’23€13.50
€22.52
+66.8%
9.7%€24.98€19.70€20.804

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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