Asaka RikenLtd Valuation

Is 5724 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 5724 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 5724 (¥851) is trading above our estimate of fair value (¥444.67)

Significantly Below Fair Value: 5724 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 5724?

Key metric: As 5724 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 5724. This is calculated by dividing 5724's market cap by their current earnings.
What is 5724's PE Ratio?
PE Ratio	11.5x
Earnings	JP¥371.00m
Market Cap	JP¥4.27b

5724 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	7.7x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 5724's PE Ratio compare to its peers?

The above table shows the PE ratio for 5724 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	10.8x
5699 IBOKINLtd	7.6x	n/a	JP¥4.0b
6092 EnBio Holdings	5.4x	n/a	JP¥4.8b
3267 Phil CompanyInc	15.4x	n/a	JP¥4.8b
2195 Amita HoldingsLtd	14.7x	n/a	JP¥6.5b
5724 Asaka RikenLtd	11.5x	n/a	JP¥4.3b

Price-To-Earnings vs Peers: 5724 is expensive based on its Price-To-Earnings Ratio (11.5x) compared to the peer average (10.8x).

Price to Earnings Ratio vs Industry

How does 5724's PE Ratio compare vs other companies in the JP Commercial Services Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap
7997 Kurogane Kosakusho	1.3x	n/a	US$8.15m

No more companies available in this PE range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 5724 is good value based on its Price-To-Earnings Ratio (11.5x) compared to the JP Commercial Services industry average (13.5x).

Price to Earnings Ratio vs Fair Ratio

What is 5724'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.

5724 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	11.5x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 5724'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.