Ryobi Valuation

Is 5851 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 5851 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 5851 (¥2022) is trading below our estimate of fair value (¥3164.64)

Significantly Below Fair Value: 5851 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 5851?

Key metric: As 5851 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 5851. This is calculated by dividing 5851's market cap by their current earnings.
What is 5851's PE Ratio?
PE Ratio7.7x
EarningsJP¥8.53b
Market CapJP¥65.74b

Price to Earnings Ratio vs Peers

How does 5851's PE Ratio compare to its peers?

The above table shows the PE ratio for 5851 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15.5x
6237 Iwaki
13.9x7.4%JP¥59.8b
6332 Tsukishima Holdings
22.7xn/aJP¥62.9b
6381 ANEST IWATA
13.2xn/aJP¥59.1b
6363 Torishima Pump Mfg
12.1x6.9%JP¥64.5b
5851 Ryobi
7.7x3.6%JP¥65.7b

Price-To-Earnings vs Peers: 5851 is good value based on its Price-To-Earnings Ratio (7.7x) compared to the peer average (15.5x).


Price to Earnings Ratio vs Industry

How does 5851's PE Ratio compare vs other companies in the JP Machinery Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
5851 7.7xIndustry Avg. 12.2xNo. of Companies39PE0816243240+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 5851 is good value based on its Price-To-Earnings Ratio (7.7x) compared to the JP Machinery industry average (12.2x).


Price to Earnings Ratio vs Fair Ratio

What is 5851'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.

5851 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.7x
Fair PE Ratio10.4x

Price-To-Earnings vs Fair Ratio: 5851 is good value based on its Price-To-Earnings Ratio (7.7x) compared to the estimated Fair Price-To-Earnings Ratio (10.4x).


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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