Nansin Valuation

Q: What is the Fair Price of 7399 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

7399 (¥516) is trading below our estimate of [[fair value]] (¥1891.18)

Is 7399 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-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 7399 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 7399 (¥516) is trading below our estimate of fair value (¥1891.18)

Significantly Below Fair Value: 7399 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 7399?

Key metric: As 7399 is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 7399. This is calculated by dividing 7399's market cap by their current revenue.
What is 7399's PS Ratio?
PS Ratio	0.4x
Sales	JP¥9.52b
Market Cap	JP¥3.44b

7399 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	0.04x
Enterprise Value/EBITDA	1.6x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 7399's PS Ratio compare to its peers?

The above table shows the PS ratio for 7399 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	0.8x
6467 Nichidai	0.3x	n/a	JP¥3.4b
3444 Kikuchi Seisakusho	0.7x	n/a	JP¥3.6b
6494 NFK Holdings	2x	n/a	JP¥3.7b
3441 SANNO	0.4x	n/a	JP¥3.2b
7399 Nansin	0.4x	n/a	JP¥3.4b

Price-To-Sales vs Peers: 7399 is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (0.8x).

Price to Sales Ratio vs Industry

How does 7399's PS Ratio compare vs other companies in the JP Machinery Industry?

2 Companies	Price / Sales	Estimated Growth	Market Cap
4242 Takagi Seiko	0.08x	n/a	US$25.37m
6217 Tsudakoma	0.06x	n/a	US$14.94m

No more companies available in this PS range

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 7399 is good value based on its Price-To-Sales Ratio (0.4x) compared to the JP Machinery industry average (0.6x).

Price to Sales Ratio vs Fair Ratio

What is 7399's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

7399 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.4x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 7399's Price-To-Sales 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.

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