Suntory Beverage & Food Limited

TSE:2587 Stock Report

Market Cap: JP¥1.6t

Suntory Beverage & Food Valuation

Is 2587 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • 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 2587 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2587 (¥5140) is trading below our estimate of fair value (¥11923.43)

Significantly Below Fair Value: 2587 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2587?

Key metric: As 2587 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2587. This is calculated by dividing 2587's market cap by their current earnings.
What is 2587's PE Ratio?
PE Ratio16.1x
EarningsJP¥98.83b
Market CapJP¥1.57t

Price to Earnings Ratio vs Peers

How does 2587's PE Ratio compare to its peers?

The above table shows the PE ratio for 2587 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average32.5x
2579 Coca-Cola Bottlers Japan Holdings
48.2x23.2%JP¥382.0b
2593 Ito En
29.5x15.0%JP¥339.4b
2585 Lifedrink Company
38.8x11.7%JP¥130.2b
2588 Premium Water HoldingsInc
13.7xn/aJP¥89.7b
2587 Suntory Beverage & Food
16.1x4.3%JP¥1.6t

Price-To-Earnings vs Peers: 2587 is good value based on its Price-To-Earnings Ratio (16.1x) compared to the peer average (32.5x).

Price to Earnings Ratio vs Industry

How does 2587's PE Ratio compare vs other companies in the Asian Beverage Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
2587 16.1xIndustry Avg. 18.7xNo. of Companies25PE01632486480+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 2587 is good value based on its Price-To-Earnings Ratio (16.1x) compared to the Asian Beverage industry average (18.7x).

Price to Earnings Ratio vs Fair Ratio

What is 2587'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.

2587 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.1x
Fair PE Ratio20.8x

Price-To-Earnings vs Fair Ratio: 2587 is good value based on its Price-To-Earnings Ratio (16.1x) compared to the estimated Fair Price-To-Earnings Ratio (20.8x).

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 2587 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥5,132.00
JP¥6,183.33
+20.5%
10.4%JP¥7,100.00JP¥5,100.00n/a9
Nov ’25JP¥5,098.00
JP¥6,183.33
+21.3%
10.4%JP¥7,100.00JP¥5,100.00n/a9
Oct ’25JP¥5,476.00
JP¥6,183.33
+12.9%
10.4%JP¥7,100.00JP¥5,100.00n/a9
Sep ’25JP¥5,350.00
JP¥6,205.56
+16.0%
10.4%JP¥7,100.00JP¥5,100.00n/a9
Aug ’25JP¥5,254.00
JP¥6,283.33
+19.6%
11.6%JP¥7,700.00JP¥5,300.00n/a9
Jul ’25JP¥5,698.00
JP¥6,294.44
+10.5%
11.7%JP¥7,700.00JP¥5,300.00n/a9
Jun ’25JP¥5,751.00
JP¥5,990.00
+4.2%
10.1%JP¥7,000.00JP¥5,300.00n/a10
May ’25JP¥5,104.00
JP¥5,830.00
+14.2%
9.5%JP¥7,000.00JP¥5,100.00n/a10
Apr ’25JP¥5,140.00
JP¥5,750.00
+11.9%
10.8%JP¥7,000.00JP¥5,000.00n/a9
Mar ’25JP¥4,880.00
JP¥5,720.00
+17.2%
8.7%JP¥6,600.00JP¥5,000.00n/a10
Feb ’25JP¥4,849.00
JP¥5,700.00
+17.6%
8.5%JP¥6,600.00JP¥5,000.00n/a10
Jan ’25JP¥4,650.00
JP¥5,740.00
+23.4%
7.9%JP¥6,600.00JP¥5,100.00n/a10
Dec ’24JP¥4,661.00
JP¥5,745.45
+23.3%
7.2%JP¥6,400.00JP¥5,200.00JP¥5,093.0011
Nov ’24JP¥4,576.00
JP¥5,754.55
+25.8%
7.2%JP¥6,400.00JP¥5,200.00JP¥5,098.0011
Oct ’24JP¥4,550.00
JP¥5,766.67
+26.7%
7.9%JP¥6,400.00JP¥5,200.00JP¥5,476.009
Sep ’24JP¥4,730.00
JP¥5,832.00
+23.3%
9.5%JP¥6,500.00JP¥4,820.00JP¥5,350.0010
Aug ’24JP¥5,073.00
JP¥5,912.00
+16.5%
9.0%JP¥6,500.00JP¥4,820.00JP¥5,254.0010
Jul ’24JP¥5,212.00
JP¥5,912.00
+13.4%
9.0%JP¥6,500.00JP¥4,820.00JP¥5,698.0010
Jun ’24JP¥5,240.00
JP¥5,752.00
+9.8%
8.7%JP¥6,400.00JP¥4,820.00JP¥5,751.0010
May ’24JP¥5,180.00
JP¥5,542.00
+7.0%
7.8%JP¥6,100.00JP¥4,820.00JP¥5,104.0010
Apr ’24JP¥4,935.00
JP¥5,462.00
+10.7%
6.8%JP¥6,000.00JP¥4,820.00JP¥5,140.0010
Mar ’24JP¥4,830.00
JP¥5,376.67
+11.3%
8.5%JP¥6,000.00JP¥4,400.00JP¥4,880.0012
Feb ’24JP¥4,345.00
JP¥5,391.67
+24.1%
8.1%JP¥6,000.00JP¥4,400.00JP¥4,849.0012
Jan ’24JP¥4,500.00
JP¥5,576.92
+23.9%
7.6%JP¥6,300.00JP¥4,800.00JP¥4,650.0013
Dec ’23JP¥4,570.00
JP¥5,646.15
+23.5%
6.8%JP¥6,300.00JP¥5,100.00JP¥4,661.0013

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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