Seiko Electric Co., Ltd.

TSE:6653 Stock Report

Market Cap: JP¥14.6b

Seiko Electric Valuation

Is 6653 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 6653 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6653 (¥1168) is trading below our estimate of fair value (¥3057.21)

Significantly Below Fair Value: 6653 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6653?

Key metric: As 6653 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 6653. This is calculated by dividing 6653's market cap by their current earnings.
What is 6653's PE Ratio?
PE Ratio9.5x
EarningsJP¥1.50b
Market CapJP¥14.55b

Price to Earnings Ratio vs Peers

How does 6653's PE Ratio compare to its peers?

The above table shows the PE ratio for 6653 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average11.4x
6505 Toyo Denki Seizo K.K
11.8xn/aJP¥10.3b
6507 Sinfonia TechnologyLtd
17x5.5%JP¥167.6b
6622 DAIHEN
10.4x8.5%JP¥172.3b
6643 Togami Electric Mfg
6.2xn/aJP¥14.6b
6653 Seiko Electric
9.5x4.4%JP¥14.6b

Price-To-Earnings vs Peers: 6653 is good value based on its Price-To-Earnings Ratio (9.5x) compared to the peer average (11.4x).


Price to Earnings Ratio vs Industry

How does 6653's PE Ratio compare vs other companies in the JP Electrical Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
6653 9.5xIndustry Avg. 11.7xNo. of Companies9PE0816243240+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 6653 is good value based on its Price-To-Earnings Ratio (9.5x) compared to the JP Electrical industry average (11.7x).


Price to Earnings Ratio vs Fair Ratio

What is 6653'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.

6653 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.5x
Fair PE Ratio8.8x

Price-To-Earnings vs Fair Ratio: 6653 is expensive based on its Price-To-Earnings Ratio (9.5x) compared to the estimated Fair Price-To-Earnings Ratio (8.8x).


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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