Tohoku Electric Power Company, Incorporated

DB:TKT Stock Report

Market Cap: €3.7b

Tohoku Electric Power Company Valuation

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

Below Fair Value: TKT (€7.3) is trading above our estimate of fair value (€1.03)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for TKT. This is calculated by dividing TKT's market cap by their current earnings.
What is TKT's PE Ratio?
PE Ratio3.4x
EarningsJP¥176.74b
Market CapJP¥606.45b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for TKT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average25x
LEC Lechwerke
25.8xn/a€2.5b
EBK EnBW Energie Baden-Württemberg
28.3xn/a€17.0b
MNV6 Mainova
33.7xn/a€1.9b
MVV1 MVV Energie
12.3xn/a€2.0b
TKT Tohoku Electric Power Company
3.4x-4.3%€606.5b

Price-To-Earnings vs Peers: TKT is good value based on its Price-To-Earnings Ratio (3.4x) compared to the peer average (25x).

Price to Earnings Ratio vs Industry

How does TKT's PE Ratio compare vs other companies in the European Electric Utilities Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TKT 3.4xIndustry Avg. 12.7xNo. of Companies10PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TKT is good value based on its Price-To-Earnings Ratio (3.4x) compared to the European Electric Utilities industry average (12.7x).

Price to Earnings Ratio vs Fair Ratio

What is TKT'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.

TKT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.4x
Fair PE Ratio20.2x

Price-To-Earnings vs Fair Ratio: TKT is good value based on its Price-To-Earnings Ratio (3.4x) compared to the estimated Fair Price-To-Earnings Ratio (20.2x).

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 TKT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€7.30
€11.71
+60.5%
31.5%€18.98€8.66n/a5
Nov ’25€7.80
€11.82
+51.5%
31.5%€19.15€8.74n/a5
Oct ’25€8.30
€13.10
+57.8%
30.2%€19.92€10.38n/a4
Sep ’25€8.05
€12.59
+56.3%
30.2%€19.14€9.97n/a4
Aug ’25€7.60
€12.84
+68.9%
28.7%€19.11€9.99n/a4
Jul ’25€8.10
€12.29
+51.7%
28.7%€18.29€9.56n/a4
Jun ’25€9.10
€9.82
+7.9%
21.5%€11.74€6.34n/a4
May ’25€7.05
€7.85
+11.4%
32.6%€12.29€5.16n/a5
Apr ’25€7.10
€7.85
+10.6%
32.6%€12.29€5.16n/a5
Mar ’25€6.10
€7.85
+28.8%
32.6%€12.29€5.16n/a5
Feb ’25€6.00
€7.45
+24.1%
28.3%€10.96€5.42n/a4
Jan ’25€5.95
€7.45
+25.2%
28.3%€10.96€5.42n/a4
Dec ’24€5.80
€7.99
+37.8%
31.0%€11.38€5.20n/a5
Nov ’24€5.90
€7.53
+27.6%
32.4%€11.74€5.10€7.805
Oct ’24€5.95
€7.51
+26.2%
33.1%€11.84€5.06€8.305
Sep ’24€6.30
€6.59
+4.6%
47.7%€11.83€3.35€8.055
Aug ’24€6.35
€5.24
-17.5%
25.2%€6.84€3.39€7.605
Jul ’24€5.55
€5.48
-1.3%
25.1%€6.83€3.38€8.104
Jun ’24€5.50
€5.08
-7.7%
23.9%€7.17€3.55€9.105
May ’24€4.56
€5.10
+11.9%
17.6%€6.35€3.74€7.055
Apr ’24€4.42
€5.10
+15.5%
17.6%€6.35€3.74€7.105
Mar ’24€4.30
€5.10
+18.7%
17.6%€6.35€3.74€6.105
Feb ’24€4.44
€5.11
+15.1%
18.0%€6.41€3.73€6.005
Jan ’24€4.70
€5.51
+17.3%
31.0%€8.68€3.68€5.955
Dec ’23€4.34
€5.15
+18.8%
28.5%€7.97€3.64€5.805
Nov ’23€4.08
€5.13
+25.8%
21.9%€7.20€3.78€5.905

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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