Rion Valuation

Is 6823 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 6823 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6823 (¥2417) is trading below our estimate of fair value (¥7976.61)

Significantly Below Fair Value: 6823 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6823?

Key metric: As 6823 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 6823. This is calculated by dividing 6823's market cap by their current earnings.
What is 6823's PE Ratio?
PE Ratio	11.5x
Earnings	JP¥2.59b
Market Cap	JP¥29.78b

6823 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	0.9x
Enterprise Value/EBITDA	5.2x
PEG Ratio	0.7x

Price to Earnings Ratio vs Peers

How does 6823's PE Ratio compare to its peers?

The above table shows the PE ratio for 6823 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	11.4x
7749 MedikitLtd	13.4x	n/a	JP¥40.4b
4595 Mizuho MedyLtd	8.9x	-6.5%	JP¥31.0b
7775 Daiken Medical	13.9x	12.5%	JP¥14.7b
7634 Hoshi Iryo-Sanki	9.3x	n/a	JP¥13.1b
6823 Rion	11.5x	16.9%	JP¥29.8b

Price-To-Earnings vs Peers: 6823 is expensive based on its Price-To-Earnings Ratio (11.5x) compared to the peer average (11.4x).

Price to Earnings Ratio vs Industry

How does 6823's PE Ratio compare vs other companies in the JP Medical Equipment Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap

No more companies available in this PE range

0 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 6823 is good value based on its Price-To-Earnings Ratio (11.5x) compared to the JP Medical Equipment industry average (15.6x).

Price to Earnings Ratio vs Fair Ratio

What is 6823'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.

6823 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	11.5x
Fair PE Ratio	19.2x

Price-To-Earnings vs Fair Ratio: 6823 is good value based on its Price-To-Earnings Ratio (11.5x) compared to the estimated Fair Price-To-Earnings Ratio (19.2x).

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 6823 forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	JP¥2,417.00	JP¥3,590.00 +48.5%	5.3%	JP¥3,780.00	JP¥3,400.00	n/a	2
Nov ’25	JP¥2,497.00	JP¥3,590.00 +43.8%	5.3%	JP¥3,780.00	JP¥3,400.00	n/a	2
Nov ’23	JP¥2,000.00	JP¥3,710.00 +85.5%	9.7%	JP¥4,070.00	JP¥3,350.00	JP¥2,225.00	2

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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