Fast Retailing Co., Ltd.

DB:FR7 Stock Report

Market Cap: €92.7b

Fast Retailing Valuation

Is FR7 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • 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 FR7 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FR7 (€299.7) is trading above our estimate of fair value (€111.9)

Significantly Below Fair Value: FR7 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FR7?

Key metric: As FR7 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for FR7. This is calculated by dividing FR7's market cap by their current earnings.
What is FR7's PE Ratio?
PE Ratio40.8x
EarningsJP¥372.00b
Market CapJP¥15.17t

Price to Earnings Ratio vs Peers

How does FR7's PE Ratio compare to its peers?

The above table shows the PE ratio for FR7 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average28.5x
ZAL Zalando
34.6x22.0%€7.1b
TJX TJX Companies
28.3x7.6%US$135.3b
ITX Industria de Diseño Textil
28.3x8.4%€159.7b
ROST Ross Stores
22.6x7.7%US$46.7b
FR7 Fast Retailing
40.8x8.4%€15.2t

Price-To-Earnings vs Peers: FR7 is expensive based on its Price-To-Earnings Ratio (40.8x) compared to the peer average (28.5x).

Price to Earnings Ratio vs Industry

How does FR7's PE Ratio compare vs other companies in the European Specialty Retail Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
FR7 40.8xIndustry Avg. 16.4xNo. of Companies12PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: FR7 is expensive based on its Price-To-Earnings Ratio (40.8x) compared to the European Specialty Retail industry average (16.4x).

Price to Earnings Ratio vs Fair Ratio

What is FR7'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.

FR7 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio40.8x
Fair PE Ratio18.7x

Price-To-Earnings vs Fair Ratio: FR7 is expensive based on its Price-To-Earnings Ratio (40.8x) compared to the estimated Fair Price-To-Earnings Ratio (18.7x).

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 FR7 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€299.70
€320.69
+7.0%
10.3%€397.07€274.89n/a15
Nov ’25€298.60
€313.97
+5.1%
11.1%€395.37€249.39n/a15
Oct ’25€299.80
€297.17
-0.9%
8.8%€343.68€256.20n/a15
Sep ’25€286.70
€285.56
-0.4%
6.7%€317.22€254.02n/a15
Aug ’25€249.90
€272.87
+9.2%
8.2%€306.68€239.59n/a15
Jul ’25€230.40
€259.65
+12.7%
6.5%€286.49€232.92n/a15
Jun ’25€233.30
€261.51
+12.1%
6.8%€288.27€234.37n/a14
May ’25€245.20
€267.46
+9.1%
7.7%€296.03€228.64n/a13
Apr ’25€282.00
€257.04
-8.8%
7.3%€287.23€232.23n/a12
Mar ’25€270.00
€242.45
-10.2%
6.6%€281.34€213.09n/a12
Feb ’25€242.00
€242.95
+0.4%
7.2%€287.30€217.60n/a12
Jan ’25€222.00
€244.03
+9.9%
5.4%€269.90€224.68n/a12
Dec ’24€230.00
€235.81
+2.5%
6.4%€264.46€209.72n/a13
Nov ’24€208.00
€235.81
+13.4%
6.4%€264.46€209.72€298.6013
Oct ’24€204.00
€230.74
+13.1%
6.9%€252.45€203.01€299.8011
Sep ’24€210.00
€228.28
+8.7%
7.2%€252.04€201.63€286.7013
Aug ’24€228.00
€231.24
+1.4%
7.4%€255.68€204.55€249.9013
Jul ’24€230.00
€223.18
-3.0%
7.5%€249.03€197.94€230.4013
Jun ’24€218.00
€219.85
+0.8%
6.3%€246.97€200.25€233.3013
May ’24€212.00
€215.71
+1.8%
6.9%€246.46€188.73€245.2013
Apr ’24€197.00
€213.92
+8.6%
6.8%€232.68€184.81€282.0013
Mar ’24€186.00
€203.83
+9.6%
8.8%€225.44€165.29€270.0013
Feb ’24€183.33
€209.20
+14.1%
8.8%€231.38€169.65€242.0013
Jan ’24€188.33
€208.46
+10.7%
8.5%€233.49€180.32€222.0013
Dec ’23€191.67
€201.58
+5.2%
9.4%€229.11€172.40€230.0013
Nov ’23€186.67
€199.72
+7.0%
10.0%€228.38€171.85€208.0013

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

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