Kitano Construction Valuation

Q: What is the Fair Price of 1866 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

1866 (¥4000) is trading below our estimate of [[fair value]] (¥5538.39)

Is 1866 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

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 1866 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1866 (¥4000) is trading below our estimate of fair value (¥5538.39)

Significantly Below Fair Value: 1866 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1866?

Key metric: As 1866 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1866. This is calculated by dividing 1866's market cap by their current earnings.
What is 1866's PE Ratio?
PE Ratio	4.9x
Earnings	JP¥4.65b
Market Cap	JP¥22.70b

1866 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.04x
Enterprise Value/EBITDA	0.6x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 1866's PE Ratio compare to its peers?

The above table shows the PE ratio for 1866 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	16.3x
1780 Yamaura	10.5x	n/a	JP¥22.4b
1904 Taisei Oncho	8.1x	n/a	JP¥24.2b
208A KOZO KEIKAKU ENGINEERING HOLDINGS	12x	n/a	JP¥23.3b
1811 Zenitaka	34.6x	n/a	JP¥27.0b
1866 Kitano Construction	4.9x	n/a	JP¥22.7b

Price-To-Earnings vs Peers: 1866 is good value based on its Price-To-Earnings Ratio (4.9x) compared to the peer average (16.3x).

Price to Earnings Ratio vs Industry

How does 1866's PE Ratio compare vs other companies in the JP Construction Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap

No more companies available in this PE range

0 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 1866 is good value based on its Price-To-Earnings Ratio (4.9x) compared to the JP Construction industry average (11.3x).

Price to Earnings Ratio vs Fair Ratio

What is 1866'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.

1866 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	4.9x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 1866'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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