Internet Initiative Japan Inc.

DB:IIJ Stock Report

Market Cap: €3.2b

Internet Initiative Japan Valuation

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

Below Fair Value: IIJ (€35.2) is trading below our estimate of fair value (€77.22)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for IIJ. This is calculated by dividing IIJ's market cap by their current earnings.
What is IIJ's PE Ratio?
PE Ratio27.3x
EarningsJP¥18.98b
Market CapJP¥517.66b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for IIJ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average31.1x
O2D Telefónica Deutschland Holding
22.7x-11.4%€6.2b
O2D Telefónica Deutschland Holding
26.5x-41.1%€7.2b
DTE Deutsche Telekom
24.1x18.8%€144.3b
E4C ecotel communication ag
51.1x64.5%€47.3m
IIJ Internet Initiative Japan
27.3x15.2%€517.7b

Price-To-Earnings vs Peers: IIJ is good value based on its Price-To-Earnings Ratio (27.3x) compared to the peer average (31.1x).


Price to Earnings Ratio vs Industry

How does IIJ's PE Ratio compare vs other companies in the European Telecom Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
IIJ 27.3xIndustry Avg. 18.3xNo. of Companies7PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: IIJ is expensive based on its Price-To-Earnings Ratio (27.3x) compared to the European Telecom industry average (18.3x).


Price to Earnings Ratio vs Fair Ratio

What is IIJ'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.

IIJ PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio27.3x
Fair PE Ratio25.2x

Price-To-Earnings vs Fair Ratio: IIJ is expensive based on its Price-To-Earnings Ratio (27.3x) compared to the estimated Fair Price-To-Earnings Ratio (25.2x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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