LTS Valuation

Is 6560 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 6560 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6560 (¥2306) is trading above our estimate of fair value (¥1758.12)

Significantly Below Fair Value: 6560 is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6560?

Key metric: As 6560 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 6560. This is calculated by dividing 6560's market cap by their current earnings.
What is 6560's PE Ratio?
PE Ratio13.2x
EarningsJP¥787.00m
Market CapJP¥10.37b

Price to Earnings Ratio vs Peers

How does 6560's PE Ratio compare to its peers?

The above table shows the PE ratio for 6560 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average35.6x
7066 PeersLtd
25.7xn/aJP¥7.3b
7038 Frontier Management
61.9xn/aJP¥8.8b
1717 Meiho Facility Works
11.1x5.5%JP¥10.0b
4346 Nexyz. Group
43.8xn/aJP¥9.6b
13.2xn/aJP¥10.4b

Price-To-Earnings vs Peers: 6560 is good value based on its Price-To-Earnings Ratio (13.2x) compared to the peer average (35.6x).


Price to Earnings Ratio vs Industry

How does 6560's PE Ratio compare vs other companies in the JP Professional Services Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
2168 Pasona Group
0.8x-152.3%US$501.22m
No more companies available in this PE range
6560 13.2xIndustry Avg. 15.6xNo. of Companies25PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 6560 is good value based on its Price-To-Earnings Ratio (13.2x) compared to the JP Professional Services industry average (15.6x).


Price to Earnings Ratio vs Fair Ratio

What is 6560'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.

6560 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.2x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 6560'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.


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