MEITEC (TSE:9744) Valuation in Focus After Updated Dividend and Earnings Guidance for FY2026

On October 30, 2025, MEITEC Group Holdings (TSE:9744) updated investors with a higher second quarter dividend, new annual dividend guidance, and its latest full-year earnings forecasts. These developments could potentially impact shareholder returns and expectations.

See our latest analysis for MEITEC Group Holdings.

MEITEC Group Holdings’ steady flow of announcements this year has kept investors engaged, and that has played out in the stock’s positive momentum. The company’s 1-year total shareholder return stands at a healthy 14.4%, with a three-year total return of nearly 46% and long-term gains outpacing much of the market. This recent uptick in shareholder rewards, paired with profit guidance, suggests that confidence is building around its long-term outlook.

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With solid shareholder gains already on the table and management’s latest projections in view, the question is whether MEITEC’s current price leaves room for upside or if markets have already factored in next year’s growth. Is there still a buying opportunity?

Price-to-Earnings of 17.5x: Is it justified?

With MEITEC Group Holdings trading at a price-to-earnings (P/E) ratio of 17.5x as of the last close, the market currently values the company above both the industry average and its calculated fair P/E multiple. This suggests that investors are factoring in strong earnings or growth expectations relative to sector peers.

The price-to-earnings ratio measures the company’s share price relative to its earnings per share and is often used to compare valuation across similar companies. For a professional services firm like MEITEC, it reflects both market confidence in future profitability and the perceived sustainability of current performance.

Currently, MEITEC’s P/E ratio is higher than the Professional Services industry average of 14.8x. The fair P/E multiple, estimated at 16.3x, is also below the company’s present level. This indicates a premium that could correct if growth expectations are not met. The premium highlights optimism but also suggests less margin for disappointment should earnings falter.

Explore the SWS fair ratio for MEITEC Group Holdings

Result: Price-to-Earnings of 17.5x (OVERVALUED)

However, slower revenue and net income growth, or an unexpected reversal in earnings momentum, could challenge the current optimistic outlook for MEITEC.

Find out about the key risks to this MEITEC Group Holdings narrative.

Another View: SWS DCF Model Points to Undervaluation

While the price-to-earnings ratio hints at overvaluation, our SWS DCF model suggests a different story for MEITEC Group Holdings. According to this approach, the stock trades nearly 30% below its estimated fair value. Could the market be overlooking some long-term potential?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out MEITEC Group Holdings for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 861 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own MEITEC Group Holdings Narrative

If you see the trends differently or would rather draw your own conclusions, you can shape your perspective in just a few minutes. Do it your way.

A great starting point for your MEITEC Group Holdings research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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