Hitachi, Ltd.

TSE:6501 Stock Report

Market Cap: JP¥16.0t

Hitachi Valuation

Is 6501 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 6501 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6501 (¥3461) is trading below our estimate of fair value (¥5395.51)

Significantly Below Fair Value: 6501 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6501?

Other financial metrics that can be useful for relative valuation.

6501 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/Revenue1.7x
Enterprise Value/EBITDA12.7x
PEG Ratio2.2x

Price to Earnings Ratio vs Peers

How does 6501's PE Ratio compare to its peers?

The above table shows the PE ratio for 6501 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average11.4x
9435 Hikari Tsushin
9.7x-11.9%JP¥1.3t
9045 Keihan Holdings
12.3x-0.3%JP¥307.2b
7744 Noritsu Koki
9.5x-7.5%JP¥145.1b
3167 TOKAI Holdings
14.3x3.4%JP¥128.5b
6501 Hitachi
23x10.4%JP¥16.0t

Price-To-Earnings vs Peers: 6501 is expensive based on its Price-To-Earnings Ratio (23x) compared to the peer average (11.4x).

Price to Earnings Ratio vs Industry

How does 6501's PE Ratio compare vs other companies in the Asian Industrials Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.5%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.5%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: 6501 is expensive based on its Price-To-Earnings Ratio (23x) compared to the Asian Industrials industry average (11.2x).

Price to Earnings Ratio vs Fair Ratio

What is 6501'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.

6501 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23x
Fair PE Ratio30.5x

Price-To-Earnings vs Fair Ratio: 6501 is good value based on its Price-To-Earnings Ratio (23x) compared to the estimated Fair Price-To-Earnings Ratio (30.5x).

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 6501 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥3,461.00
JP¥4,153.57
+20.0%
11.8%JP¥4,850.00JP¥3,000.00n/a14
Aug ’25JP¥3,463.00
JP¥3,979.29
+14.9%
13.9%JP¥4,850.00JP¥3,000.00n/a14
Jul ’25JP¥3,718.00
JP¥3,464.29
-6.8%
14.4%JP¥4,200.00JP¥2,200.00n/a14
Jun ’25JP¥3,229.00
JP¥3,145.71
-2.6%
15.9%JP¥3,540.00JP¥1,760.00n/a14
May ’25JP¥2,898.00
JP¥2,968.57
+2.4%
16.0%JP¥3,500.00JP¥1,760.00n/a14
Apr ’25JP¥2,678.00
JP¥2,605.71
-2.7%
19.1%JP¥3,340.00JP¥1,760.00n/a14
Mar ’25JP¥2,588.00
JP¥2,532.00
-2.2%
16.4%JP¥3,300.00JP¥1,760.00n/a15
Feb ’25JP¥2,357.00
JP¥2,460.00
+4.4%
15.0%JP¥3,100.00JP¥1,760.00n/a15
Jan ’25JP¥2,034.00
JP¥2,302.67
+13.2%
13.5%JP¥2,720.00JP¥1,580.00n/a15
Dec ’24JP¥2,091.00
JP¥2,257.33
+8.0%
13.9%JP¥2,720.00JP¥1,580.00n/a15
Nov ’24JP¥1,928.40
JP¥2,156.67
+11.8%
12.9%JP¥2,600.00JP¥1,580.00n/a15
Oct ’24JP¥1,855.00
JP¥2,075.33
+11.9%
14.9%JP¥2,600.00JP¥1,440.00n/a15
Sep ’24JP¥1,983.80
JP¥2,049.33
+3.3%
14.4%JP¥2,600.00JP¥1,440.00n/a15
Aug ’24JP¥1,917.80
JP¥1,865.33
-2.7%
13.1%JP¥2,180.00JP¥1,340.00JP¥3,463.0015
Jul ’24JP¥1,779.20
JP¥1,809.33
+1.7%
13.2%JP¥2,180.00JP¥1,340.00JP¥3,718.0015
Jun ’24JP¥1,607.40
JP¥1,739.33
+8.2%
10.9%JP¥2,000.00JP¥1,340.00JP¥3,229.0015
May ’24JP¥1,556.00
JP¥1,719.33
+10.5%
10.7%JP¥2,000.00JP¥1,340.00JP¥2,898.0015
Apr ’24JP¥1,450.40
JP¥1,706.43
+17.7%
11.3%JP¥2,000.00JP¥1,260.00JP¥2,678.0014
Mar ’24JP¥1,395.80
JP¥1,681.79
+20.5%
10.1%JP¥1,880.00JP¥1,260.00JP¥2,588.0014
Feb ’24JP¥1,341.20
JP¥1,663.21
+24.0%
11.1%JP¥1,880.00JP¥1,260.00JP¥2,357.0014
Jan ’24JP¥1,338.20
JP¥1,677.31
+25.3%
11.1%JP¥2,000.00JP¥1,160.00JP¥2,034.0013
Dec ’23JP¥1,464.40
JP¥1,677.31
+14.5%
11.1%JP¥2,000.00JP¥1,160.00JP¥2,091.0013
Nov ’23JP¥1,403.80
JP¥1,642.93
+17.0%
11.5%JP¥2,000.00JP¥1,160.00JP¥1,928.4014
Oct ’23JP¥1,222.80
JP¥1,658.64
+35.6%
11.6%JP¥2,000.00JP¥1,160.00JP¥1,855.0014
Sep ’23JP¥1,392.20
JP¥1,664.36
+19.5%
10.8%JP¥2,000.00JP¥1,220.00JP¥1,983.8014
Aug ’23JP¥1,322.80
JP¥1,642.57
+24.2%
10.6%JP¥2,000.00JP¥1,220.00JP¥1,917.8014

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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