SBI ARUHI Corporation

TSE:7198 Stock Report

Market Cap: JP¥35.8b

SBI ARUHI Valuation

Is 7198 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 7198 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 7198 (¥807) is trading below our estimate of fair value (¥1531.24)

Significantly Below Fair Value: 7198 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 7198?

Key metric: As 7198 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 7198. This is calculated by dividing 7198's market cap by their current earnings.
What is 7198's PE Ratio?
PE Ratio18.7x
EarningsJP¥1.91b
Market CapJP¥35.77b

Price to Earnings Ratio vs Peers

How does 7198's PE Ratio compare to its peers?

The above table shows the PE ratio for 7198 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average9.2x
8772 Asax
7.7xn/aJP¥23.1b
7192 Mortgage Service Japan
7.9xn/aJP¥6.2b
7191 Entrust
14.1x10.8%JP¥18.3b
8596 Kyushu Leasing Service
6.9xn/aJP¥22.8b
7198 SBI ARUHI
18.7x20.2%JP¥35.8b

Price-To-Earnings vs Peers: 7198 is expensive based on its Price-To-Earnings Ratio (18.7x) compared to the peer average (9.2x).

Price to Earnings Ratio vs Industry

How does 7198'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$166.59m
No more companies available in this PE range
7198 18.7xIndustry Avg. 13.4xNo. of Companies5PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 7198 is expensive based on its Price-To-Earnings Ratio (18.7x) compared to the JP Diversified Financial industry average (13.4x).

Price to Earnings Ratio vs Fair Ratio

What is 7198'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.

7198 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.7x
Fair PE Ratio12.6x

Price-To-Earnings vs Fair Ratio: 7198 is expensive based on its Price-To-Earnings Ratio (18.7x) compared to the estimated Fair Price-To-Earnings Ratio (12.6x).

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 7198 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥807.00
JP¥875.00
+8.4%
2.9%JP¥900.00JP¥850.00n/a2
Dec ’25JP¥820.00
JP¥875.00
+6.7%
2.9%JP¥900.00JP¥850.00n/a2
Nov ’25JP¥808.00
JP¥875.00
+8.3%
2.9%JP¥900.00JP¥850.00n/a2
Oct ’25JP¥821.00
JP¥875.00
+6.6%
2.9%JP¥900.00JP¥850.00n/a2
Sep ’25JP¥861.00
JP¥875.00
+1.6%
2.9%JP¥900.00JP¥850.00n/a2
Aug ’25JP¥897.00
JP¥875.00
-2.5%
2.9%JP¥900.00JP¥850.00n/a2
Jul ’25JP¥917.00
JP¥875.00
-4.6%
2.9%JP¥900.00JP¥850.00n/a2
Jun ’25JP¥847.00
JP¥875.00
+3.3%
2.9%JP¥900.00JP¥850.00n/a2
May ’25JP¥847.00
JP¥905.00
+6.8%
10.5%JP¥1,000.00JP¥810.00n/a2
Apr ’25JP¥949.00
JP¥905.00
-4.6%
10.5%JP¥1,000.00JP¥810.00n/a2
Jan ’25JP¥822.00
JP¥905.00
+10.1%
10.5%JP¥1,000.00JP¥810.00n/a2
Dec ’24JP¥817.00
JP¥995.00
+21.8%
0.5%JP¥1,000.00JP¥990.00JP¥820.002
Nov ’24JP¥820.00
JP¥995.00
+21.3%
0.5%JP¥1,000.00JP¥990.00JP¥808.002
Oct ’24JP¥915.00
JP¥995.00
+8.7%
0.5%JP¥1,000.00JP¥990.00JP¥821.002
Sep ’24JP¥934.00
JP¥995.00
+6.5%
0.5%JP¥1,000.00JP¥990.00JP¥861.002
Aug ’24JP¥1,003.00
JP¥995.00
-0.8%
0.5%JP¥1,000.00JP¥990.00JP¥897.002
Jul ’24JP¥989.00
JP¥995.00
+0.6%
0.5%JP¥1,000.00JP¥990.00JP¥917.002
Jun ’24JP¥974.00
JP¥1,040.00
+6.8%
3.8%JP¥1,080.00JP¥1,000.00JP¥847.002
May ’24JP¥1,092.00
JP¥1,040.00
-4.8%
3.8%JP¥1,080.00JP¥1,000.00JP¥847.002
Apr ’24JP¥1,066.00
JP¥1,040.00
-2.4%
3.8%JP¥1,080.00JP¥1,000.00JP¥949.002
Mar ’24JP¥1,115.00
JP¥1,040.00
-6.7%
3.8%JP¥1,080.00JP¥1,000.00JP¥917.002
Feb ’24JP¥1,040.00
JP¥1,040.00
0%
3.8%JP¥1,080.00JP¥1,000.00JP¥848.002
Jan ’24JP¥1,012.00
JP¥1,053.33
+4.1%
3.6%JP¥1,080.00JP¥1,000.00JP¥822.003
Dec ’23JP¥1,009.00
JP¥1,126.67
+11.7%
11.3%JP¥1,300.00JP¥1,000.00JP¥817.003

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/21 10:10
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2024/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

SBI ARUHI Corporation is covered by 5 analysts. 2 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Young-Soo SeoKiwoom Securities Co., Ltd.
Shinsuke IwasaMizuho Securities Co., Ltd.
YunJeong HwangShinhan Investment Corp.