McDonald's Holdings Company (Japan), Ltd.

TSE:2702 Stock Report

Market Cap: JP¥862.9b

McDonald's Holdings Company (Japan) Valuation

Is 2702 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 2702 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2702 (¥6490) is trading below our estimate of fair value (¥6764.18)

Significantly Below Fair Value: 2702 is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2702?

Other financial metrics that can be useful for relative valuation.

2702 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/Revenue2x
Enterprise Value/EBITDA12.7x
PEG Ratio3.6x

Price to Earnings Ratio vs Peers

How does 2702's PE Ratio compare to its peers?

The above table shows the PE ratio for 2702 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average46.3x
7550 Zensho Holdings
33.9x16.1%JP¥1.2t
3197 Skylark Holdings
49x10.5%JP¥516.0b
3563 Food & Life Companies
24.7x12.3%JP¥311.1b
3397 TORIDOLL Holdings
77.8x37.5%JP¥323.2b
2702 McDonald's Holdings Company (Japan)
30.1x8.3%JP¥862.9b

Price-To-Earnings vs Peers: 2702 is good value based on its Price-To-Earnings Ratio (30.1x) compared to the peer average (46.3x).

Price to Earnings Ratio vs Industry

How does 2702's PE Ratio compare vs other companies in the JP Hospitality Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a11.3%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a11.3%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: 2702 is expensive based on its Price-To-Earnings Ratio (30.1x) compared to the JP Hospitality industry average (21.7x).

Price to Earnings Ratio vs Fair Ratio

What is 2702'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.

2702 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio30.1x
Fair PE Ratio29.9x

Price-To-Earnings vs Fair Ratio: 2702 is expensive based on its Price-To-Earnings Ratio (30.1x) compared to the estimated Fair Price-To-Earnings Ratio (29.9x).

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 2702 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥6,490.00
JP¥7,400.00
+14.0%
4.1%JP¥7,700.00JP¥7,100.00n/a2
Aug ’25JP¥6,120.00
JP¥7,400.00
+20.9%
4.1%JP¥7,700.00JP¥7,100.00n/a2
Jul ’25JP¥6,340.00
JP¥7,400.00
+16.7%
4.1%JP¥7,700.00JP¥7,100.00n/a2
Jun ’25JP¥6,440.00
JP¥7,400.00
+14.9%
4.1%JP¥7,700.00JP¥7,100.00n/a2
May ’25JP¥6,990.00
JP¥7,350.00
+5.2%
4.8%JP¥7,700.00JP¥7,000.00n/a2
Apr ’25JP¥6,880.00
JP¥7,350.00
+6.8%
4.8%JP¥7,700.00JP¥7,000.00n/a2
Mar ’25JP¥6,910.00
JP¥7,350.00
+6.4%
4.8%JP¥7,700.00JP¥7,000.00n/a2
Feb ’25JP¥6,590.00
JP¥6,650.00
+0.9%
2.3%JP¥6,800.00JP¥6,500.00n/a2
Jan ’25JP¥6,110.00
JP¥6,650.00
+8.8%
2.3%JP¥6,800.00JP¥6,500.00n/a2
Dec ’24JP¥6,280.00
JP¥6,650.00
+5.9%
2.3%JP¥6,800.00JP¥6,500.00n/a2
Nov ’24JP¥5,960.00
JP¥6,450.00
+8.2%
0.8%JP¥6,500.00JP¥6,400.00n/a2
Oct ’24JP¥5,710.00
JP¥6,450.00
+13.0%
0.8%JP¥6,500.00JP¥6,400.00n/a2
Sep ’24JP¥5,770.00
JP¥6,450.00
+11.8%
0.8%JP¥6,500.00JP¥6,400.00n/a2
Aug ’24JP¥5,620.00
JP¥6,300.00
+12.1%
1.6%JP¥6,400.00JP¥6,200.00JP¥6,120.002
Jul ’24JP¥5,610.00
JP¥6,300.00
+12.3%
1.6%JP¥6,400.00JP¥6,200.00JP¥6,340.002
Jun ’24JP¥5,670.00
JP¥6,300.00
+11.1%
1.6%JP¥6,400.00JP¥6,200.00JP¥6,440.002
May ’24JP¥5,690.00
JP¥6,500.00
+14.2%
4.6%JP¥6,800.00JP¥6,200.00JP¥6,990.002
Apr ’24JP¥5,520.00
JP¥6,500.00
+17.8%
4.6%JP¥6,800.00JP¥6,200.00JP¥6,880.002
Mar ’24JP¥5,480.00
JP¥6,500.00
+18.6%
4.6%JP¥6,800.00JP¥6,200.00JP¥6,910.002
Feb ’24JP¥5,140.00
JP¥5,550.00
+8.0%
4.5%JP¥5,800.00JP¥5,300.00JP¥6,590.002
Jan ’24JP¥4,995.00
JP¥5,550.00
+11.1%
4.5%JP¥5,800.00JP¥5,300.00JP¥6,110.002
Dec ’23JP¥5,070.00
JP¥5,550.00
+9.5%
4.5%JP¥5,800.00JP¥5,300.00JP¥6,280.002
Nov ’23JP¥5,160.00
JP¥5,850.00
+13.4%
0.9%JP¥5,900.00JP¥5,800.00JP¥5,960.002
Oct ’23JP¥5,040.00
JP¥5,850.00
+16.1%
0.9%JP¥5,900.00JP¥5,800.00JP¥5,710.002
Sep ’23JP¥4,930.00
JP¥5,850.00
+18.7%
0.9%JP¥5,900.00JP¥5,800.00JP¥5,770.002

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

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