Mitsubishi Electric Corporation

TSE:6503 Stock Report

Market Cap: JP¥5.9t

Mitsubishi Electric Valuation

Is 6503 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-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 6503 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6503 (¥2836) is trading above our estimate of fair value (¥2313.87)

Significantly Below Fair Value: 6503 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6503?

Other financial metrics that can be useful for relative valuation.

6503 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/Revenue1.1x
Enterprise Value/EBITDA10.5x
PEG Ratio2.5x

Price to Earnings Ratio vs Peers

How does 6503's PE Ratio compare to its peers?

The above table shows the PE ratio for 6503 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.4x
6622 DAIHEN
15.1x3.6%JP¥235.6b
6594 Nidec
33.2x16.5%JP¥4.2t
6507 Sinfonia TechnologyLtd
13x17.0%JP¥91.4b
6273 SMC
28.2x8.5%JP¥5.3t
6503 Mitsubishi Electric
20.8x8.3%JP¥5.9t

Price-To-Earnings vs Peers: 6503 is good value based on its Price-To-Earnings Ratio (20.8x) compared to the peer average (22.4x).

Price to Earnings Ratio vs Industry

How does 6503's PE Ratio compare vs other companies in the JP Electrical Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.6%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.6%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: 6503 is expensive based on its Price-To-Earnings Ratio (20.8x) compared to the JP Electrical industry average (12.5x).

Price to Earnings Ratio vs Fair Ratio

What is 6503'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.

6503 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.8x
Fair PE Ratio24.8x

Price-To-Earnings vs Fair Ratio: 6503 is good value based on its Price-To-Earnings Ratio (20.8x) compared to the estimated Fair Price-To-Earnings Ratio (24.8x).

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 6503 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥2,836.00
JP¥2,550.00
-10.1%
15.5%JP¥3,300.00JP¥2,100.00n/a15
Apr ’25JP¥2,470.50
JP¥2,453.33
-0.7%
14.6%JP¥3,200.00JP¥1,800.00n/a15
Mar ’25JP¥2,431.50
JP¥2,396.67
-1.4%
13.2%JP¥2,900.00JP¥1,800.00n/a15
Feb ’25JP¥2,159.50
JP¥2,359.33
+9.3%
13.5%JP¥2,900.00JP¥1,800.00n/a15
Jan ’25JP¥1,999.00
JP¥2,164.67
+8.3%
11.2%JP¥2,620.00JP¥1,800.00n/a15
Dec ’24JP¥2,055.50
JP¥2,138.00
+4.0%
10.1%JP¥2,620.00JP¥1,800.00n/a15
Nov ’24JP¥1,921.00
JP¥2,121.33
+10.4%
11.0%JP¥2,620.00JP¥1,800.00n/a15
Oct ’24JP¥1,849.00
JP¥2,159.47
+16.8%
11.5%JP¥2,620.00JP¥1,800.00n/a15
Sep ’24JP¥1,893.50
JP¥2,159.47
+14.0%
11.5%JP¥2,620.00JP¥1,800.00n/a15
Aug ’24JP¥1,920.50
JP¥2,159.47
+12.4%
11.5%JP¥2,620.00JP¥1,800.00n/a15
Jul ’24JP¥2,027.00
JP¥2,096.67
+3.4%
12.6%JP¥2,500.00JP¥1,800.00n/a15
Jun ’24JP¥1,848.50
JP¥1,901.33
+2.9%
14.2%JP¥2,500.00JP¥1,450.00n/a15
May ’24JP¥1,752.50
JP¥1,796.33
+2.5%
12.8%JP¥2,275.00JP¥1,300.00JP¥2,850.0015
Apr ’24JP¥1,578.50
JP¥1,716.67
+8.8%
13.5%JP¥2,100.00JP¥1,200.00JP¥2,470.5015
Mar ’24JP¥1,547.50
JP¥1,649.33
+6.6%
15.4%JP¥2,100.00JP¥1,200.00JP¥2,431.5015
Feb ’24JP¥1,424.50
JP¥1,580.67
+11.0%
15.8%JP¥1,950.00JP¥1,100.00JP¥2,159.5015
Jan ’24JP¥1,313.50
JP¥1,586.00
+20.7%
14.9%JP¥1,950.00JP¥1,200.00JP¥1,999.0015
Dec ’23JP¥1,373.50
JP¥1,618.00
+17.8%
15.9%JP¥2,000.00JP¥1,200.00JP¥2,055.5015
Nov ’23JP¥1,310.00
JP¥1,629.38
+24.4%
17.3%JP¥2,130.00JP¥1,200.00JP¥1,921.0016
Oct ’23JP¥1,304.50
JP¥1,633.75
+25.2%
17.1%JP¥2,130.00JP¥1,200.00JP¥1,849.0016
Sep ’23JP¥1,386.00
JP¥1,641.76
+18.5%
16.5%JP¥2,130.00JP¥1,200.00JP¥1,893.5017
Aug ’23JP¥1,395.00
JP¥1,643.53
+17.8%
16.4%JP¥2,130.00JP¥1,200.00JP¥1,920.5017
Jul ’23JP¥1,447.50
JP¥1,692.50
+16.9%
17.0%JP¥2,130.00JP¥1,200.00JP¥2,027.0016
Jun ’23JP¥1,446.00
JP¥1,690.00
+16.9%
17.1%JP¥2,130.00JP¥1,200.00JP¥1,848.5016
May ’23JP¥1,368.00
JP¥1,670.00
+22.1%
16.4%JP¥2,130.00JP¥1,200.00JP¥1,752.5016

Analyst Forecast: Target price is lower than the current share price.

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