Bridgestone Corporation

TSE:5108 Stock Report

Market Cap: JP¥3.7t

Bridgestone Valuation

Is 5108 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 5108 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 5108 (¥5397) is trading below our estimate of fair value (¥9061.75)

Significantly Below Fair Value: 5108 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 5108?

Key metric: As 5108 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 5108. This is calculated by dividing 5108's market cap by their current earnings.
What is 5108's PE Ratio?
PE Ratio11.8x
EarningsJP¥313.72b
Market CapJP¥3.70t

Price to Earnings Ratio vs Peers

How does 5108's PE Ratio compare to its peers?

The above table shows the PE ratio for 5108 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14x
5110 Sumitomo Rubber Industries
33.2x32.8%JP¥461.6b
5101 Yokohama Rubber Company
5.8x4.2%JP¥487.1b
5105 Toyo Tire
5.2x-3.7%JP¥369.9b
5802 Sumitomo Electric Industries
11.7x3.3%JP¥2.3t
5108 Bridgestone
11.8x11.3%JP¥3.7t

Price-To-Earnings vs Peers: 5108 is good value based on its Price-To-Earnings Ratio (11.8x) compared to the peer average (14x).

Price to Earnings Ratio vs Industry

How does 5108's PE Ratio compare vs other companies in the JP Auto Components Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
5108 11.8xIndustry Avg. 9.9xNo. of Companies13PE0612182430+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 5108 is expensive based on its Price-To-Earnings Ratio (11.8x) compared to the JP Auto Components industry average (9.9x).

Price to Earnings Ratio vs Fair Ratio

What is 5108'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.

5108 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.8x
Fair PE Ratio10.8x

Price-To-Earnings vs Fair Ratio: 5108 is expensive based on its Price-To-Earnings Ratio (11.8x) compared to the estimated Fair Price-To-Earnings Ratio (10.8x).

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 5108 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥5,397.00
JP¥6,256.67
+15.9%
6.7%JP¥7,000.00JP¥5,500.00n/a12
Nov ’25JP¥5,419.00
JP¥6,273.33
+15.8%
7.2%JP¥7,200.00JP¥5,500.00n/a12
Oct ’25JP¥5,635.00
JP¥6,375.00
+13.1%
8.9%JP¥7,500.00JP¥5,500.00n/a12
Sep ’25JP¥5,682.00
JP¥6,491.67
+14.2%
8.5%JP¥7,600.00JP¥5,700.00n/a12
Aug ’25JP¥5,978.00
JP¥6,733.33
+12.6%
9.3%JP¥7,900.00JP¥5,700.00n/a12
Jul ’25JP¥6,295.00
JP¥6,858.33
+8.9%
7.4%JP¥7,900.00JP¥5,900.00n/a12
Jun ’25JP¥6,840.00
JP¥6,818.18
-0.3%
7.1%JP¥7,700.00JP¥5,900.00n/a11
May ’25JP¥6,940.00
JP¥6,772.73
-2.4%
6.6%JP¥7,700.00JP¥5,900.00n/a11
Apr ’25JP¥6,738.00
JP¥6,618.18
-1.8%
8.5%JP¥7,700.00JP¥5,900.00n/a11
Mar ’25JP¥6,452.00
JP¥6,472.73
+0.3%
9.0%JP¥7,300.00JP¥5,400.00n/a11
Feb ’25JP¥6,334.00
JP¥6,375.00
+0.6%
7.5%JP¥7,100.00JP¥5,400.00n/a12
Jan ’25JP¥5,840.00
JP¥6,316.67
+8.2%
8.5%JP¥7,100.00JP¥5,400.00n/a12
Dec ’24JP¥6,115.00
JP¥6,223.08
+1.8%
8.1%JP¥7,000.00JP¥5,400.00n/a13
Nov ’24JP¥5,814.00
JP¥6,176.92
+6.2%
8.1%JP¥7,000.00JP¥5,400.00JP¥5,419.0013
Oct ’24JP¥5,829.00
JP¥6,066.67
+4.1%
7.0%JP¥6,700.00JP¥5,400.00JP¥5,635.0012
Sep ’24JP¥5,662.00
JP¥6,000.00
+6.0%
7.2%JP¥6,700.00JP¥5,100.00JP¥5,682.0012
Aug ’24JP¥5,952.00
JP¥6,000.00
+0.8%
7.6%JP¥6,700.00JP¥5,100.00JP¥5,978.0012
Jul ’24JP¥5,892.00
JP¥5,859.09
-0.6%
6.1%JP¥6,400.00JP¥5,100.00JP¥6,295.0011
Jun ’24JP¥5,606.00
JP¥5,668.18
+1.1%
5.8%JP¥6,200.00JP¥5,100.00JP¥6,840.0011
May ’24JP¥5,476.00
JP¥5,604.55
+2.3%
5.6%JP¥6,150.00JP¥5,100.00JP¥6,940.0011
Apr ’24JP¥5,367.00
JP¥5,490.91
+2.3%
7.0%JP¥6,150.00JP¥4,900.00JP¥6,738.0011
Mar ’24JP¥5,237.00
JP¥5,360.00
+2.3%
6.9%JP¥6,000.00JP¥4,850.00JP¥6,452.0010
Feb ’24JP¥4,829.00
JP¥5,315.00
+10.1%
6.1%JP¥6,000.00JP¥4,900.00JP¥6,334.0010
Jan ’24JP¥4,691.00
JP¥5,435.00
+15.9%
7.5%JP¥6,400.00JP¥4,900.00JP¥5,840.0010
Dec ’23JP¥5,143.00
JP¥5,435.00
+5.7%
7.5%JP¥6,400.00JP¥4,900.00JP¥6,115.0010
Nov ’23JP¥5,361.00
JP¥5,490.91
+2.4%
8.2%JP¥6,300.00JP¥4,900.00JP¥5,814.0011

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

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