Tokyo Electron Limited

DB:TKY Stock Report

Market Cap: €63.6b

Tokyo Electron Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: TKY (€136.15) is trading below our estimate of fair value (€155.85)

Significantly Below Fair Value: TKY 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 TKY?

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

The above table shows the Price to Earnings ratio for TKY. This is calculated by dividing TKY's market cap by their current earnings.
What is TKY's PE Ratio?
PE Ratio21.8x
EarningsJP¥470.38b
Market CapJP¥10.26t

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for TKY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17.8x
WAF Siltronic
14.8x-17.0%€1.4b
AIXA AIXTRON
12.8x6.2%€1.5b
IFX Infineon Technologies
22.3x17.0%€39.0b
SMHN SÜSS MicroTec
21.5x-3.4%€924.2m
TKY Tokyo Electron
21.8x13.0%€10.3t

Price-To-Earnings vs Peers: TKY is expensive based on its Price-To-Earnings Ratio (21.8x) compared to the peer average (17.8x).

Price to Earnings Ratio vs Industry

How does TKY's PE Ratio compare vs other companies in the European Semiconductor Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TKY 21.8xIndustry Avg. 14.8xNo. of Companies7PE01632486480+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TKY is expensive based on its Price-To-Earnings Ratio (21.8x) compared to the European Semiconductor industry average (14.8x).

Price to Earnings Ratio vs Fair Ratio

What is TKY'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.

TKY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.8x
Fair PE Ratio25.6x

Price-To-Earnings vs Fair Ratio: TKY is good value based on its Price-To-Earnings Ratio (21.8x) compared to the estimated Fair Price-To-Earnings Ratio (25.6x).

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 TKY forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€136.15
€206.52
+51.7%
15.0%€253.16€150.04n/a17
Nov ’25€136.00
€206.06
+51.5%
13.8%€246.27€156.17n/a17
Oct ’25€156.85
€222.09
+41.6%
14.5%€277.51€169.28n/a18
Sep ’25€161.45
€230.48
+42.8%
14.7%€293.45€183.79n/a19
Aug ’25€188.35
€232.07
+23.2%
13.2%€278.03€171.98n/a19
Jul ’25€200.00
€237.39
+18.7%
14.3%€285.07€176.33n/a19
Jun ’25€195.65
€233.37
+19.3%
16.5%€284.70€140.88n/a19
May ’25€207.10
€238.03
+14.9%
15.9%€292.65€145.72n/a19
Apr ’25€240.20
€238.02
-0.9%
15.6%€295.14€146.96n/a19
Mar ’25€240.80
€214.21
-11.0%
20.6%€275.23€128.44n/a20
Feb ’25€172.95
€173.42
+0.3%
12.0%€206.19€131.21n/a19
Jan ’25€160.10
€164.07
+2.5%
16.7%€192.74€96.37n/a19
Dec ’24€148.00
€146.65
-0.9%
20.1%€179.73€82.63n/a20
Nov ’24€126.35
€140.90
+11.5%
17.3%€164.90€84.56€136.0020
Oct ’24€132.05
€139.62
+5.7%
17.8%€165.45€84.84€156.8520
Sep ’24€134.85
€133.82
-0.8%
18.7%€162.77€83.47€161.4519
Aug ’24€138.00
€133.11
-3.5%
17.3%€166.17€85.21€188.3519
Jul ’24€131.50
€132.69
+0.9%
16.1%€167.72€90.31€200.0018
Jun ’24€135.55
€126.84
-6.4%
14.5%€153.40€93.37€195.6517
May ’24€104.40
€121.04
+15.9%
12.9%€148.18€91.05€207.1017
Apr ’24€111.85
€135.55
+21.2%
49.3%€395.79€92.58€240.2017
Mar ’24€109.20
€119.54
+9.5%
12.2%€150.55€92.65€240.8018
Feb ’24€106.30
€116.35
+9.5%
15.4%€153.09€82.43€172.9518
Jan ’24€90.97
€111.15
+22.2%
16.9%€149.92€80.73€160.1018
Dec ’23€108.30
€112.94
+4.3%
16.9%€150.60€81.09€148.0018
Nov ’23€89.27
€105.83
+18.6%
21.4%€158.16€63.71€126.3519

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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