Rheon Automatic Machinery Valuation

Q: What is the Fair Price of 6272 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

6272 (¥1400) is trading below our estimate of [[fair value]] (¥5120.72)

Is 6272 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 6272 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6272 (¥1400) is trading below our estimate of fair value (¥5120.72)

Significantly Below Fair Value: 6272 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6272?

Key metric: As 6272 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 6272. This is calculated by dividing 6272's market cap by their current earnings.
What is 6272's PE Ratio?
PE Ratio	10.2x
Earnings	JP¥3.68b
Market Cap	JP¥37.59b

6272 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	0.7x
Enterprise Value/EBITDA	3.8x
PEG Ratio	0.9x

Price to Earnings Ratio vs Peers

How does 6272's PE Ratio compare to its peers?

The above table shows the PE ratio for 6272 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	11.4x
6223 Seibu GikenLtd	10.9x	9.7%	JP¥35.6b
6364 Hokuetsu Industries	10.4x	17.0%	JP¥47.6b
7607 Shinwa	13.9x	n/a	JP¥38.0b
6118 Aida Engineering	10.5x	9.2%	JP¥42.0b
6272 Rheon Automatic Machinery	10.2x	11.1%	JP¥37.6b

Price-To-Earnings vs Peers: 6272 is good value based on its Price-To-Earnings Ratio (10.2x) compared to the peer average (11.4x).

Price to Earnings Ratio vs Industry

How does 6272's PE Ratio compare vs other companies in the JP Machinery 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: 6272 is good value based on its Price-To-Earnings Ratio (10.2x) compared to the JP Machinery industry average (12.3x).

Price to Earnings Ratio vs Fair Ratio

What is 6272'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.

6272 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	10.2x
Fair PE Ratio	11x

Price-To-Earnings vs Fair Ratio: 6272 is good value based on its Price-To-Earnings Ratio (10.2x) compared to the estimated Fair Price-To-Earnings Ratio (11x).

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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