Sanko Gosei Valuation

Is 7888 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 7888 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 7888 (¥777) is trading above our estimate of fair value (¥639.97)

Significantly Below Fair Value: 7888 is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 7888?

Other financial metrics that can be useful for relative valuation.

7888 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/Revenue0.4x
Enterprise Value/EBITDA4.1x
PEG Ratio0.5x

Price to Earnings Ratio vs Peers

How does 7888's PE Ratio compare to its peers?

The above table shows the PE ratio for 7888 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average10.1x
6246 Techno Smart
11.5xn/aJP¥20.7b
6137 Koike Sanso KogyoLtd
8xn/aJP¥24.3b
6245 HIRANO TECSEEDLtd
11.8x4.5%JP¥28.7b
9.3xn/aJP¥26.0b
7888 Sanko Gosei
10.8x22.7%JP¥23.7b

Price-To-Earnings vs Peers: 7888 is expensive based on its Price-To-Earnings Ratio (10.8x) compared to the peer average (10.1x).


Price to Earnings Ratio vs Industry

How does 7888'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: 7888 is good value based on its Price-To-Earnings Ratio (10.8x) compared to the JP Machinery industry average (13.4x).


Price to Earnings Ratio vs Fair Ratio

What is 7888'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.

7888 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.8x
Fair PE Ratio17.1x

Price-To-Earnings vs Fair Ratio: 7888 is good value based on its Price-To-Earnings Ratio (10.8x) compared to the estimated Fair Price-To-Earnings Ratio (17.1x).


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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