Daiwa House Industry Co., Ltd.

DB:DWH Stock Report

Market Cap: €18.0b

Daiwa House Industry Valuation

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

Below Fair Value: DWH (€28) is trading below our estimate of fair value (€48.83)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for DWH. This is calculated by dividing DWH's market cap by their current earnings.
What is DWH's PE Ratio?
PE Ratio9.8x
EarningsJP¥300.61b
Market CapJP¥2.95t

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for DWH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.9x
FC9 FCR Immobilien
13.2x9.1%€97.2m
8802 Mitsubishi Estate
14.8x4.4%JP¥2.6t
DLF DLF
52.4x16.3%₹1.9t
8801 Mitsui Fudosan
19.3x11.1%JP¥3.5t
DWH Daiwa House Industry
9.8x4.1%€3.0t

Price-To-Earnings vs Peers: DWH is good value based on its Price-To-Earnings Ratio (9.8x) compared to the peer average (24.9x).

Price to Earnings Ratio vs Industry

How does DWH's PE Ratio compare vs other companies in the European Real Estate Industry?

24 CompaniesPrice / EarningsEstimated GrowthMarket Cap
DWH 9.8xIndustry Avg. 18.1xNo. of Companies32PE01224364860+
24 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: DWH is good value based on its Price-To-Earnings Ratio (9.8x) compared to the European Real Estate industry average (18x).

Price to Earnings Ratio vs Fair Ratio

What is DWH'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.

DWH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.8x
Fair PE Ratio21.5x

Price-To-Earnings vs Fair Ratio: DWH is good value based on its Price-To-Earnings Ratio (9.8x) compared to the estimated Fair Price-To-Earnings Ratio (21.5x).

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 DWH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€28.00
€29.60
+5.7%
5.8%€31.65€26.78n/a9
Nov ’25€27.00
€29.80
+10.4%
6.0%€31.99€27.07n/a9
Oct ’25€27.60
€30.53
+10.6%
5.4%€33.31€28.19n/a9
Sep ’25€27.60
€28.78
+4.3%
6.1%€31.29€25.40n/a9
Aug ’25€25.20
€26.19
+3.9%
5.0%€27.80€23.74n/a9
Jul ’25€23.40
€26.44
+13.0%
5.0%€28.06€23.97n/a9
Jun ’25€24.20
€26.99
+11.5%
4.1%€28.30€25.35n/a9
May ’25€26.00
€28.49
+9.6%
6.0%€30.75€26.18n/a9
Apr ’25€27.00
€28.69
+6.2%
6.1%€31.03€26.42n/a9
Mar ’25€26.60
€29.27
+10.0%
6.2%€31.36€26.70n/a9
Feb ’25€27.80
€29.76
+7.0%
5.3%€31.44€27.04n/a9
Jan ’25€26.80
€28.33
+5.7%
5.2%€30.70€26.40n/a9
Dec ’24€25.80
€28.33
+9.8%
5.2%€30.70€26.40n/a9
Nov ’24€26.00
€28.36
+9.1%
4.3%€30.23€26.45€27.0010
Oct ’24€25.20
€28.41
+12.8%
4.2%€30.45€26.64€27.608
Sep ’24€25.60
€25.41
-0.8%
10.5%€28.63€19.91€27.609
Aug ’24€24.60
€25.10
+2.1%
8.9%€28.11€20.12€25.209
Jul ’24€23.80
€25.83
+8.5%
9.6%€29.33€21.00€23.409
Jun ’24€23.80
€25.87
+8.7%
9.5%€29.55€21.15€24.209
May ’24€23.20
€24.93
+7.5%
8.0%€28.68€21.51€26.009
Apr ’24€21.40
€25.26
+18.0%
7.7%€29.01€21.76€27.009
Mar ’24€21.40
€25.34
+18.4%
7.5%€29.23€21.92€26.6010
Feb ’24€21.60
€26.67
+23.5%
9.5%€33.24€23.49€27.8010
Jan ’24€21.40
€25.62
+19.7%
10.1%€32.24€22.78€26.8010
Dec ’23€21.80
€25.25
+15.8%
9.8%€31.90€22.54€25.8010
Nov ’23€20.20
€24.71
+22.3%
10.3%€31.20€21.71€26.0010

Analyst Forecast: Target price is less than 20% higher than the current share price.

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