JAC Recruitment Valuation

Q: What is the Fair Price of 2124 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

2124 (¥717) is trading below our estimate of [[fair value]] (¥1064.5)

Is 2124 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 2124 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2124 (¥717) is trading below our estimate of fair value (¥1064.5)

Significantly Below Fair Value: 2124 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2124?

Key metric: As 2124 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2124. This is calculated by dividing 2124's market cap by their current earnings.
What is 2124's PE Ratio?
PE Ratio	19.2x
Earnings	JP¥5.91b
Market Cap	JP¥113.38b

2124 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	2.6x
Enterprise Value/EBITDA	10.5x
PEG Ratio	1x

Price to Earnings Ratio vs Peers

How does 2124's PE Ratio compare to its peers?

The above table shows the PE ratio for 2124 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	19x
2379 DIP	13.5x	14.1%	JP¥131.7b
2175 SMS	19.9x	17.3%	JP¥133.9b
4849 en-japan	17.1x	9.5%	JP¥82.2b
6200 Insource	25.5x	18.2%	JP¥85.4b
2124 JAC Recruitment	19.2x	19.5%	JP¥113.4b

Price-To-Earnings vs Peers: 2124 is expensive based on its Price-To-Earnings Ratio (19.2x) compared to the peer average (19x).

Price to Earnings Ratio vs Industry

How does 2124's PE Ratio compare vs other companies in the JP Professional Services Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap
2168 Pasona Group	0.8x	-152.3%	US$485.97m

No more companies available in this PE range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 2124 is expensive based on its Price-To-Earnings Ratio (19.2x) compared to the JP Professional Services industry average (15.7x).

Price to Earnings Ratio vs Fair Ratio

What is 2124'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.

2124 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	19.2x
Fair PE Ratio	19.4x

Price-To-Earnings vs Fair Ratio: 2124 is good value based on its Price-To-Earnings Ratio (19.2x) compared to the estimated Fair Price-To-Earnings Ratio (19.4x).

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.