Brother Industries, Ltd.

DB:BI5 Stock Report

Market Cap: €4.4b

Brother Industries Valuation

Is BI5 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 BI5 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€26.96
Fair Value
37.3% undervalued intrinsic discount
4
Number of Analysts

Below Fair Value: BI5 (€16.9) is trading below our estimate of fair value (€26.96)

Significantly Below Fair Value: BI5 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BI5?

Key metric: As BI5 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for BI5. This is calculated by dividing BI5's market cap by their current earnings.
What is BI5's PE Ratio?
PE Ratio22.7x
EarningsJP¥30.89b
Market CapJP¥701.50b

Price to Earnings Ratio vs Peers

How does BI5's PE Ratio compare to its peers?

The above table shows the PE ratio for BI5 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21x
JEN Jenoptik
14.7x12.2%€1.2b
2059 King Slide Works
31.8x18.4%NT$144.9b
2377 Micro-Star International
21.7x24.2%NT$153.3b
6724 Seiko Epson
15.8x11.3%JP¥911.0b
BI5 Brother Industries
22.7x13.0%€701.5b

Price-To-Earnings vs Peers: BI5 is expensive based on its Price-To-Earnings Ratio (22.7x) compared to the peer average (21x).

Price to Earnings Ratio vs Industry

How does BI5's PE Ratio compare vs other companies in the European Tech Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
BI5 22.7xIndustry Avg. 21.6xNo. of Companies3PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BI5 is expensive based on its Price-To-Earnings Ratio (22.7x) compared to the Global Tech industry average (21.6x).

Price to Earnings Ratio vs Fair Ratio

What is BI5'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.

BI5 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.7x
Fair PE Ratio12.9x

Price-To-Earnings vs Fair Ratio: BI5 is expensive based on its Price-To-Earnings Ratio (22.7x) compared to the estimated Fair Price-To-Earnings Ratio (12.9x).

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 BI5 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€16.90
€18.09
+7.0%
5.6%€19.79€17.32n/a4
Jan ’26€16.10
€17.89
+11.1%
5.6%€19.58€17.13n/a4
Dec ’25€16.40
€17.89
+9.1%
5.6%€19.58€17.13n/a4
Nov ’25€17.70
€18.09
+2.2%
5.6%€19.79€17.32n/a4
Oct ’25€17.40
€18.09
+4.0%
5.6%€19.79€17.32n/a4
Sep ’25€16.50
€18.09
+9.6%
5.6%€19.79€17.32n/a4
Aug ’25€17.70
€17.14
-3.2%
5.6%€18.36€16.07n/a4
Jul ’25€16.40
€16.60
+1.2%
7.6%€18.29€14.75n/a4
Jun ’25€17.30
€15.65
-9.5%
14.2%€18.31€11.81n/a5
May ’25€16.30
€15.72
-3.5%
12.4%€17.30€12.14n/a5
Apr ’25€17.70
€15.77
-10.9%
11.7%€17.25€12.32n/a5
Mar ’25€15.10
€15.48
+2.5%
11.0%€17.34€12.38n/a5
Feb ’25€15.10
€15.37
+1.8%
9.8%€16.87€12.49€16.905
Jan ’25€14.00
€15.77
+12.6%
10.0%€17.17€12.72€16.105
Dec ’24€16.10
€15.31
-4.9%
10.0%€16.66€12.34€16.405
Nov ’24€14.40
€15.48
+7.5%
9.7%€17.24€12.77€17.706
Oct ’24€14.90
€14.89
-0.07%
7.8%€15.78€12.63€17.406
Sep ’24€15.30
€14.78
-3.4%
7.4%€15.78€12.62€16.506
Aug ’24€13.80
€14.38
+4.2%
8.8%€15.98€12.78€17.706
Jul ’24€13.70
€14.16
+3.3%
8.6%€15.88€12.70€16.407
Jun ’24€13.50
€15.15
+12.2%
9.2%€16.89€13.51€17.307
May ’24€13.90
€15.44
+11.1%
8.7%€16.99€13.59€16.307
Apr ’24€13.40
€16.31
+21.7%
7.6%€17.60€14.08€17.706
Mar ’24€13.50
€16.20
+20.0%
8.1%€17.36€13.89€15.106
Feb ’24€13.60
€17.61
+29.5%
7.4%€20.13€16.54€15.106
Analyst Price Target
Consensus Narrative from 4 Analysts
€18.01
Fair Value
6.2% undervalued intrinsic discount
4
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/02 02:20
End of Day Share Price 2025/01/31 00:00
Earnings2024/09/30
Annual Earnings2024/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Brother Industries, Ltd. is covered by 15 analysts. 4 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Ryohei TakahashiBofA Global Research
Masahiro ShibanoCitigroup Inc
Morten PaulsenCLSA