Kyokuto Kaihatsu KogyoLtd Valuation

Q: What is the Fair Price of 7226 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

7226 (¥2276) is trading below our estimate of [[fair value]] (¥2603.06)

Is 7226 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

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 7226 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 7226 (¥2276) is trading below our estimate of fair value (¥2603.06)

Significantly Below Fair Value: 7226 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 7226?

Key metric: As 7226 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 7226. This is calculated by dividing 7226's market cap by their current earnings.
What is 7226's PE Ratio?
PE Ratio	15.8x
Earnings	JP¥5.51b
Market Cap	JP¥87.02b

7226 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	0.6x
Enterprise Value/EBITDA	8.5x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 7226's PE Ratio compare to its peers?

The above table shows the PE ratio for 7226 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	15x
7224 ShinMaywa Industries	11.7x	n/a	JP¥86.9b
6455 Morita Holdings	11.9x	n/a	JP¥90.3b
6345 Aichi	16.6x	8.5%	JP¥90.1b
6289 Giken	19.7x	5.9%	JP¥47.7b
7226 Kyokuto Kaihatsu KogyoLtd	15.8x	n/a	JP¥87.0b

Price-To-Earnings vs Peers: 7226 is expensive based on its Price-To-Earnings Ratio (15.8x) compared to the peer average (15x).

Price to Earnings Ratio vs Industry

How does 7226'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: 7226 is expensive based on its Price-To-Earnings Ratio (15.8x) compared to the JP Machinery industry average (12.2x).

Price to Earnings Ratio vs Fair Ratio

What is 7226'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.

7226 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	15.8x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 7226's Price-To-Earnings Fair Ratio for valuation analysis.

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.

Discover undervalued companies

Kanadevia

JP¥159.8b

Kanadevia Corporation design, constructs, and manufactures energy-from-waste plants, desalination plants, and water and sewage treatment plants in Japan and internationally.

7004

JP¥962.00

0.8%

6.8%

Tsubakimoto Chain

JP¥195.7b

Manufactures and sells chains, motion control, mobility, materials handling systems components in Japan.

6371

JP¥1,909.00

-0.8%

52.3%

Terasaki ElectricLtd

JP¥28.6b

Manufactures and sells marine and industrial systems, circuit breakers, and medical devices in Japan and internationally.

6637

JP¥2,150.00

0.5%

43.4%