JGC Holdings Corporation

TSE:1963 Stock Report

Market Cap: JP¥316.1b

JGC Holdings Valuation

Is 1963 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-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 1963 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1963 (¥1308) is trading below our estimate of fair value (¥2326.64)

Significantly Below Fair Value: 1963 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1963?

Key metric: As 1963 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 1963. This is calculated by dividing 1963's market cap by their current revenue.
What is 1963's PS Ratio?
PS Ratio0.4x
SalesJP¥836.04b
Market CapJP¥316.11b

Price to Sales Ratio vs Peers

How does 1963's PS Ratio compare to its peers?

The above table shows the PS ratio for 1963 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.2x
1959 Kyudenko
0.8x2.4%JP¥386.3b
1860 Toda
0.6x3.7%JP¥295.8b
5076 INFRONEER Holdings
0.4x3.3%JP¥298.2b
1414 SHO-BOND HoldingsLtd
3.2x5.8%JP¥272.3b
1963 JGC Holdings
0.4x0.3%JP¥316.1b

Price-To-Sales vs Peers: 1963 is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (1.2x).

Price to Sales Ratio vs Industry

How does 1963's PS Ratio compare vs other companies in the JP Construction Industry?

1 CompanyPrice / SalesEstimated GrowthMarket Cap
1734 KITA KOUDENSHA
0.03xn/aUS$2.70m
No more companies available in this PS range
1963 0.4xIndustry Avg. 0.5xNo. of Companies31PS00.40.81.21.62+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 1963 is good value based on its Price-To-Sales Ratio (0.4x) compared to the JP Construction industry average (0.5x).

Price to Sales Ratio vs Fair Ratio

What is 1963'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.

1963 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.4x
Fair PS Ratio0.3x

Price-To-Sales vs Fair Ratio: 1963 is expensive based on its Price-To-Sales Ratio (0.4x) compared to the estimated Fair Price-To-Sales Ratio (0.3x).

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 1963 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥1,308.00
JP¥1,313.33
+0.4%
11.9%JP¥1,500.00JP¥1,100.00n/a6
Nov ’25JP¥1,311.00
JP¥1,313.33
+0.2%
11.9%JP¥1,500.00JP¥1,100.00n/a6
Oct ’25JP¥1,269.50
JP¥1,388.33
+9.4%
10.3%JP¥1,550.00JP¥1,200.00n/a6
Sep ’25JP¥1,330.00
JP¥1,381.67
+3.9%
10.4%JP¥1,550.00JP¥1,200.00n/a6
Aug ’25JP¥1,248.50
JP¥1,356.67
+8.7%
11.7%JP¥1,500.00JP¥1,100.00n/a6
Jul ’25JP¥1,265.50
JP¥1,356.67
+7.2%
11.7%JP¥1,500.00JP¥1,100.00n/a6
Jun ’25JP¥1,247.00
JP¥1,583.33
+27.0%
30.8%JP¥2,600.00JP¥1,100.00n/a6
May ’25JP¥1,349.00
JP¥1,608.33
+19.2%
29.5%JP¥2,600.00JP¥1,100.00n/a6
Apr ’25JP¥1,487.00
JP¥1,991.67
+33.9%
23.6%JP¥2,600.00JP¥1,300.00n/a6
Mar ’25JP¥1,379.50
JP¥2,039.33
+47.8%
24.1%JP¥2,600.00JP¥1,300.00n/a6
Feb ’25JP¥1,707.00
JP¥2,214.33
+29.7%
13.1%JP¥2,600.00JP¥1,900.00n/a6
Jan ’25JP¥1,627.50
JP¥2,222.67
+36.6%
12.6%JP¥2,600.00JP¥1,900.00n/a6
Dec ’24JP¥1,662.00
JP¥2,222.67
+33.7%
12.6%JP¥2,600.00JP¥1,900.00n/a6
Nov ’24JP¥1,871.00
JP¥2,239.33
+19.7%
12.1%JP¥2,600.00JP¥1,900.00JP¥1,311.006
Oct ’24JP¥2,079.50
JP¥2,239.33
+7.7%
12.1%JP¥2,600.00JP¥1,900.00JP¥1,269.506
Sep ’24JP¥1,960.00
JP¥2,231.00
+13.8%
12.5%JP¥2,600.00JP¥1,900.00JP¥1,330.006
Aug ’24JP¥2,015.50
JP¥2,214.33
+9.9%
13.6%JP¥2,600.00JP¥1,800.00JP¥1,248.506
Jul ’24JP¥1,865.00
JP¥2,214.33
+18.7%
13.6%JP¥2,600.00JP¥1,800.00JP¥1,265.506
Jun ’24JP¥1,693.00
JP¥2,231.00
+31.8%
14.5%JP¥2,700.00JP¥1,800.00JP¥1,247.006
May ’24JP¥1,702.00
JP¥2,231.00
+31.1%
14.5%JP¥2,700.00JP¥1,800.00JP¥1,349.006
Apr ’24JP¥1,641.00
JP¥2,231.00
+36.0%
14.5%JP¥2,700.00JP¥1,800.00JP¥1,487.006
Mar ’24JP¥1,761.00
JP¥2,231.00
+26.7%
14.5%JP¥2,700.00JP¥1,800.00JP¥1,379.506
Feb ’24JP¥1,690.00
JP¥2,314.33
+36.9%
13.3%JP¥2,600.00JP¥1,800.00JP¥1,707.006
Jan ’24JP¥1,678.00
JP¥2,314.33
+37.9%
13.3%JP¥2,600.00JP¥1,800.00JP¥1,627.506
Dec ’23JP¥1,896.00
JP¥2,314.33
+22.1%
13.3%JP¥2,600.00JP¥1,800.00JP¥1,662.006
Nov ’23JP¥1,849.00
JP¥2,263.33
+22.4%
13.2%JP¥2,600.00JP¥1,800.00JP¥1,871.006

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

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