Otec Valuation

Is 1736 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 1736 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1736 (¥3360) is trading below our estimate of fair value (¥8726.82)

Significantly Below Fair Value: 1736 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1736?

Key metric: As 1736 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1736. This is calculated by dividing 1736's market cap by their current earnings.
What is 1736's PE Ratio?
PE Ratio11.2x
EarningsJP¥1.54b
Market CapJP¥17.35b

Price to Earnings Ratio vs Peers

How does 1736's PE Ratio compare to its peers?

The above table shows the PE ratio for 1736 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average8.1x
3388 Meiji Electric IndustriesLtd
8.4xn/aJP¥17.6b
9906 Fujii Sangyo
5.8xn/aJP¥21.0b
3166 Ochi Holdings
10.4xn/aJP¥16.9b
8285 Mitani Sangyo
7.9xn/aJP¥19.5b
1736 Otec
11.2xn/aJP¥17.3b

Price-To-Earnings vs Peers: 1736 is expensive based on its Price-To-Earnings Ratio (11.2x) compared to the peer average (8.1x).


Price to Earnings Ratio vs Industry

How does 1736's PE Ratio compare vs other companies in the JP Trade Distributors Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
1736 11.2xIndustry Avg. 9.4xNo. of Companies21PE0612182430+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1736 is expensive based on its Price-To-Earnings Ratio (11.2x) compared to the JP Trade Distributors industry average (9.4x).


Price to Earnings Ratio vs Fair Ratio

What is 1736'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.

1736 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.2x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 1736's Price-To-Earnings Fair Ratio for valuation analysis.


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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