Japan Prime Realty Investment Corporation

DB:58JA Stock Report

Market Cap: €2.1b

Japan Prime Realty Investment Valuation

Is 58JA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • 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 58JA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 58JA (€2020) is trading above our estimate of fair value (€1404.77)

Significantly Below Fair Value: 58JA is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 58JA?

Key metric: As 58JA is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 58JA. This is calculated by dividing 58JA's market cap by their current earnings.
What is 58JA's PE Ratio?
PE Ratio22.2x
EarningsJP¥14.89b
Market CapJP¥330.56b

Price to Earnings Ratio vs Peers

How does 58JA's PE Ratio compare to its peers?

The above table shows the PE ratio for 58JA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average41.4x
HABA Hamborner REIT
64.2x10.8%€525.5m
EQC Equity Commonwealth
51.8xn/aUS$2.2b
K71U Keppel REIT
26.6x12.0%S$3.3b
8976 Daiwa Office Investment
23.2x5.4%JP¥287.3b
58JA Japan Prime Realty Investment
22.2x2.5%€330.6b

Price-To-Earnings vs Peers: 58JA is good value based on its Price-To-Earnings Ratio (22.2x) compared to the peer average (41.4x).


Price to Earnings Ratio vs Industry

How does 58JA's PE Ratio compare vs other companies in the Global Office REITs Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
58JA 22.2xIndustry Avg. 20.7xNo. of Companies8PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 58JA is expensive based on its Price-To-Earnings Ratio (22.2x) compared to the Global Office REITs industry average (21x).


Price to Earnings Ratio vs Fair Ratio

What is 58JA'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.

58JA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.2x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 58JA's Price-To-Earnings Fair Ratio for valuation analysis.


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 58JA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€2,020.00
€2,217.30
+9.8%
8.3%€2,431.74€1,859.21n/a6
Nov ’25€1,950.00
€2,190.03
+12.3%
10.1%€2,481.06€1,896.91n/a6
Oct ’25€2,120.00
€2,190.03
+3.3%
10.1%€2,481.06€1,896.91n/a6
Sep ’25€1,980.00
€2,000.18
+1.0%
9.1%€2,269.38€1,735.07n/a7
Aug ’25€1,950.00
€2,000.18
+2.6%
9.1%€2,269.38€1,735.07n/a7
Jul ’25€1,790.00
€2,082.28
+16.3%
10.1%€2,447.15€1,793.78n/a7
Jun ’25€1,930.00
€2,067.61
+7.1%
10.9%€2,429.25€1,780.66n/a6
May ’25€1,970.00
€2,165.99
+9.9%
10.1%€2,541.39€1,862.86n/a7
Apr ’25€1,990.00
€2,165.99
+8.8%
10.1%€2,541.39€1,862.86n/a7
Mar ’25€1,930.00
€2,209.05
+14.5%
9.0%€2,535.17€1,858.31n/a6
Feb ’25€2,140.00
€2,388.20
+11.6%
9.5%€2,656.90€1,947.53n/a6
Jan ’25€2,180.00
€2,388.20
+9.6%
9.5%€2,656.90€1,947.53n/a6
Dec ’24€2,180.00
€2,325.71
+6.7%
8.8%€2,595.72€1,902.69n/a7
Nov ’24€2,160.00
€2,325.71
+7.7%
8.8%€2,595.72€1,902.69€1,950.007
Oct ’24€2,240.00
€2,333.89
+4.2%
8.8%€2,603.84€1,908.64€2,120.007
Sep ’24€2,320.00
€2,333.89
+0.6%
8.8%€2,603.84€1,908.64€1,980.007
Aug ’24€2,200.00
€2,316.81
+5.3%
9.4%€2,609.01€1,912.43€1,950.007
Jul ’24€2,160.00
€2,341.51
+8.4%
9.7%€2,668.61€1,956.11€1,790.006
Jun ’24€2,240.00
€2,501.31
+11.7%
10.1%€2,799.11€2,051.78€1,930.006
May ’24€2,320.00
€2,501.31
+7.8%
10.1%€2,799.11€2,051.78€1,970.006
Apr ’24€2,340.00
€2,681.67
+14.6%
12.0%€3,055.25€2,097.01€1,990.005
Mar ’24€2,380.00
€2,763.52
+16.1%
11.2%€3,105.98€2,098.45€1,930.007
Feb ’24€2,420.00
€2,875.05
+18.8%
11.9%€3,188.95€2,090.30€2,140.007
Jan ’24€2,560.00
€2,857.27
+11.6%
12.1%€3,143.60€2,060.57€2,180.007
Dec ’23€2,640.00
€2,857.27
+8.2%
12.1%€3,143.60€2,060.57€2,180.007
Nov ’23€2,720.00
€2,857.27
+5.0%
12.1%€3,143.60€2,060.57€2,160.007

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


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