S&B Foods Valuation

Q: What is the Fair Price of 2805 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

2805 (¥4975) is trading below our estimate of [[fair value]] (¥28092)

Is 2805 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

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 2805 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2805 (¥4975) is trading below our estimate of fair value (¥28092)

Significantly Below Fair Value: 2805 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2805?

Key metric: As 2805 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2805. This is calculated by dividing 2805's market cap by their current earnings.
What is 2805's PE Ratio?
PE Ratio	7.5x
Earnings	JP¥7.97b
Market Cap	JP¥59.64b

2805 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/Revenue	0.5x
Enterprise Value/EBITDA	4.7x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 2805's PE Ratio compare to its peers?

The above table shows the PE ratio for 2805 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	18.4x
2208 Bourbon	12.8x	n/a	JP¥55.5b
8043 Starzen	8.3x	n/a	JP¥55.1b
2003 Nitto Fuji Flour MillingLtd	12.5x	n/a	JP¥59.6b
2211 Fujiya	40.1x	n/a	JP¥69.0b
2805 S&B Foods	7.5x	n/a	JP¥59.6b

Price-To-Earnings vs Peers: 2805 is good value based on its Price-To-Earnings Ratio (7.5x) compared to the peer average (18.4x).

Price to Earnings Ratio vs Industry

How does 2805's PE Ratio compare vs other companies in the JP Food Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap
2215 First Baking	1.9x	n/a	US$26.23m

No more companies available in this PE range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 2805 is good value based on its Price-To-Earnings Ratio (7.5x) compared to the JP Food industry average (15x).

Price to Earnings Ratio vs Fair Ratio

What is 2805'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.

2805 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	7.5x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 2805's Price-To-Earnings Fair Ratio for valuation analysis.

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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