Kokuyo Valuation

Q: What is the Fair Price of 7984 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

7984 (¥2793) is trading below our estimate of [[fair value]] (¥4577.74)

Is 7984 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 7984 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 7984 (¥2793) is trading below our estimate of fair value (¥4577.74)

Significantly Below Fair Value: 7984 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 7984?

Key metric: As 7984 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 7984. This is calculated by dividing 7984's market cap by their current earnings.
What is 7984's PE Ratio?
PE Ratio	15.4x
Earnings	JP¥20.57b
Market Cap	JP¥319.83b

7984 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	7.1x
PEG Ratio	3.7x

Price to Earnings Ratio vs Peers

How does 7984's PE Ratio compare to its peers?

The above table shows the PE ratio for 7984 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	12x
7846 Pilot	14x	8.6%	JP¥190.1b
7994 Okamura	10.4x	3.4%	JP¥187.8b
7976 Mitsubishi Pencil	12x	-6.4%	JP¥138.3b
7972 Itoki	11.5x	18.1%	JP¥77.6b
7984 Kokuyo	15.4x	4.2%	JP¥319.8b

Price-To-Earnings vs Peers: 7984 is expensive based on its Price-To-Earnings Ratio (15.4x) compared to the peer average (12x).

Price to Earnings Ratio vs Industry

How does 7984'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$8.24m

No more companies available in this PE range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 7984 is expensive based on its Price-To-Earnings Ratio (15.4x) compared to the JP Commercial Services industry average (13.4x).

Price to Earnings Ratio vs Fair Ratio

What is 7984'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.

7984 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	15.4x
Fair PE Ratio	17.5x

Price-To-Earnings vs Fair Ratio: 7984 is good value based on its Price-To-Earnings Ratio (15.4x) compared to the estimated Fair Price-To-Earnings Ratio (17.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 7984 forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	JP¥2,793.00	JP¥2,950.00 +5.6%	8.5%	JP¥3,200.00	JP¥2,700.00	n/a	2
Nov ’25	JP¥2,452.00	JP¥2,950.00 +20.3%	8.5%	JP¥3,200.00	JP¥2,700.00	n/a	2
Oct ’25	JP¥2,543.50	JP¥3,050.00 +19.9%	4.9%	JP¥3,200.00	JP¥2,900.00	n/a	2
Sep ’25	JP¥2,456.50	JP¥3,050.00 +24.2%	4.9%	JP¥3,200.00	JP¥2,900.00	n/a	2
Aug ’25	JP¥2,426.50	JP¥3,100.00 +27.8%	6.5%	JP¥3,300.00	JP¥2,900.00	n/a	2
Jul ’25	JP¥2,658.00	JP¥3,150.00 +18.5%	4.8%	JP¥3,300.00	JP¥3,000.00	n/a	2

Analyst Forecast: Target price is less than 20% higher than the current share price.