JDC Valuation

Q: What is the Fair Price of 1887 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

1887 (¥503) is trading above our estimate of [[fair value]] (¥382.15)

Is 1887 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-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 1887 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1887 (¥503) is trading above our estimate of fair value (¥382.15)

Significantly Below Fair Value: 1887 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1887?

Key metric: As 1887 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 1887. This is calculated by dividing 1887's market cap by their current revenue.
What is 1887's PS Ratio?
PS Ratio	0.3x
Sales	JP¥133.09b
Market Cap	JP¥40.17b

1887 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	0.4x
Enterprise Value/EBITDA	-13.7x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 1887's PS Ratio compare to its peers?

The above table shows the PS ratio for 1887 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	0.6x
6330 Toyo Engineering	0.2x	-0.3%	JP¥41.1b
1921 Tomoe	1.2x	n/a	JP¥39.1b
1929 Nittoc Construction	0.6x	5.8%	JP¥41.5b
3443 Kawada Technologies	0.4x	4.2%	JP¥46.6b
1887 JDC	0.3x	n/a	JP¥40.2b

Price-To-Sales vs Peers: 1887 is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (0.6x).

Price to Sales Ratio vs Industry

How does 1887's PS Ratio compare vs other companies in the JP Construction Industry?

1 Company	Price / Sales	Estimated Growth	Market Cap
1734 KITA KOUDENSHA	0.03x	n/a	US$2.70m

No more companies available in this PS range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 1887 is good value based on its Price-To-Sales Ratio (0.3x) compared to the JP Construction industry average (0.5x).

Price to Sales Ratio vs Fair Ratio

What is 1887's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1887 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.3x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 1887's Price-To-Sales 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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