Japan Investment Adviser Co., Ltd.

TSE:7172 Stock Report

Market Cap: JP¥66.7b

Japan Investment Adviser Valuation

Is 7172 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 7172 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 7172 (¥1102) is trading below our estimate of fair value (¥1814.43)

Significantly Below Fair Value: 7172 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 7172?

Key metric: As 7172 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 7172. This is calculated by dividing 7172's market cap by their current earnings.
What is 7172's PE Ratio?
PE Ratio19.9x
EarningsJP¥3.35b
Market CapJP¥66.65b

Price to Earnings Ratio vs Peers

How does 7172's PE Ratio compare to its peers?

The above table shows the PE ratio for 7172 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average12.5x
8771 eGuarantee
22.7x12.8%JP¥75.8b
8793 NEC Capital Solutions
9.5xn/aJP¥80.1b
8301 Bank of Japan
0.01xn/aJP¥26.5b
8511 Japan Securities Finance
17.8xn/aJP¥170.3b
7172 Japan Investment Adviser
19.9x56.2%JP¥66.7b

Price-To-Earnings vs Peers: 7172 is expensive based on its Price-To-Earnings Ratio (19.9x) compared to the peer average (12.5x).

Price to Earnings Ratio vs Industry

How does 7172's PE Ratio compare vs other companies in the JP Diversified Financial Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
8301 Bank of Japan
0.01xn/aUS$171.54m
No more companies available in this PE range
7172 19.9xIndustry Avg. 13.8xNo. of Companies5PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 7172 is expensive based on its Price-To-Earnings Ratio (19.9x) compared to the JP Diversified Financial industry average (13.8x).

Price to Earnings Ratio vs Fair Ratio

What is 7172'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.

7172 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.9x
Fair PE Ratio26.2x

Price-To-Earnings vs Fair Ratio: 7172 is good value based on its Price-To-Earnings Ratio (19.9x) compared to the estimated Fair Price-To-Earnings Ratio (26.2x).

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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