Mitsubishi Heavy Industries, Ltd.

TSE:7011 Stock Report

Market Cap: JP¥6.5t

Mitsubishi Heavy Industries Valuation

Is 7011 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 7011 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 7011 (¥1936.5) is trading below our estimate of fair value (¥2045.5)

Significantly Below Fair Value: 7011 is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 7011?

Other financial metrics that can be useful for relative valuation.

7011 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/Revenue1.6x
Enterprise Value/EBITDA17.4x
PEG Ratio2.3x

Price to Earnings Ratio vs Peers

How does 7011's PE Ratio compare to its peers?

The above table shows the PE ratio for 7011 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average29.9x
6273 SMC
29.4x7.2%JP¥5.2t
6954 Fanuc
32.4x9.5%JP¥4.3t
6506 YASKAWA Electric
30.7x10.0%JP¥1.5t
6479 MINEBEA MITSUMI
27.1x2.1%JP¥1.5t
7011 Mitsubishi Heavy Industries
29.3x12.8%JP¥6.5t

Price-To-Earnings vs Peers: 7011 is good value based on its Price-To-Earnings Ratio (29.3x) compared to the peer average (29.9x).

Price to Earnings Ratio vs Industry

How does 7011's PE Ratio compare vs other companies in the JP Machinery Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.3%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.3%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: 7011 is expensive based on its Price-To-Earnings Ratio (29.3x) compared to the JP Machinery industry average (13.5x).

Price to Earnings Ratio vs Fair Ratio

What is 7011'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.

7011 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio29.3x
Fair PE Ratio29.3x

Price-To-Earnings vs Fair Ratio: 7011 is good value based on its Price-To-Earnings Ratio (29.3x) compared to the estimated Fair Price-To-Earnings Ratio (29.3x).

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 7011 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥1,936.50
JP¥1,673.33
-13.6%
18.9%JP¥2,400.00JP¥1,150.00n/a12
Jul ’25JP¥1,733.50
JP¥1,640.00
-5.4%
15.5%JP¥2,000.00JP¥1,150.00n/a12
Jun ’25JP¥1,368.00
JP¥1,502.50
+9.8%
15.1%JP¥1,900.00JP¥1,150.00n/a12
May ’25JP¥1,392.50
JP¥1,456.67
+4.6%
18.2%JP¥1,900.00JP¥1,100.00n/a12
Apr ’25JP¥1,382.00
JP¥1,311.82
-5.1%
15.4%JP¥1,700.00JP¥1,050.00n/a11
Mar ’25JP¥1,194.00
JP¥1,144.55
-4.1%
14.4%JP¥1,500.00JP¥860.00n/a11
Feb ’25JP¥982.90
JP¥1,057.27
+7.6%
11.5%JP¥1,250.00JP¥840.00n/a11
Jan ’25JP¥824.10
JP¥1,043.64
+26.6%
11.4%JP¥1,250.00JP¥840.00n/a11
Dec ’24JP¥842.40
JP¥994.55
+18.1%
12.0%JP¥1,200.00JP¥780.00n/a11
Nov ’24JP¥808.60
JP¥970.00
+20.0%
10.2%JP¥1,100.00JP¥780.00n/a10
Oct ’24JP¥834.60
JP¥949.00
+13.7%
11.2%JP¥1,100.00JP¥780.00n/a10
Sep ’24JP¥833.00
JP¥836.00
+0.4%
11.2%JP¥1,000.00JP¥700.00n/a10
Aug ’24JP¥684.30
JP¥711.50
+4.0%
11.8%JP¥840.00JP¥520.00n/a10
Jul ’24JP¥671.10
JP¥702.50
+4.7%
11.5%JP¥840.00JP¥520.00JP¥1,733.5010
Jun ’24JP¥591.90
JP¥647.50
+9.4%
15.7%JP¥840.00JP¥500.00JP¥1,368.0010
May ’24JP¥523.60
JP¥584.50
+11.6%
10.6%JP¥690.00JP¥500.00JP¥1,392.5010
Apr ’24JP¥487.60
JP¥580.50
+19.1%
12.4%JP¥700.00JP¥470.00JP¥1,382.0010
Mar ’24JP¥500.60
JP¥580.50
+16.0%
12.4%JP¥700.00JP¥470.00JP¥1,194.0010
Feb ’24JP¥507.20
JP¥582.00
+14.7%
13.4%JP¥700.00JP¥470.00JP¥982.9010
Jan ’24JP¥523.40
JP¥582.00
+11.2%
13.4%JP¥700.00JP¥470.00JP¥824.1010
Dec ’23JP¥532.90
JP¥577.00
+8.3%
13.5%JP¥700.00JP¥470.00JP¥842.4010
Nov ’23JP¥526.60
JP¥554.00
+5.2%
18.3%JP¥680.00JP¥350.00JP¥808.6010
Oct ’23JP¥480.60
JP¥549.00
+14.2%
17.9%JP¥680.00JP¥350.00JP¥834.6010
Sep ’23JP¥525.30
JP¥529.80
+0.9%
19.4%JP¥664.00JP¥350.00JP¥833.0010
Aug ’23JP¥506.00
JP¥509.80
+0.8%
24.7%JP¥664.00JP¥290.00JP¥684.3010
Jul ’23JP¥483.80
JP¥499.80
+3.3%
23.8%JP¥664.00JP¥290.00JP¥671.1010

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

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