We’ve recently updated our valuation analysis.

Nakanishi Valuation

Is 7716 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 7716?

Other financial metrics that can be useful for relative valuation.

7716 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/Revenue4.2x
Enterprise Value/EBITDA12.1x
PEG Ratio2.3x

Price to Earnings Ratio vs Peers

How does 7716's PE Ratio compare to its peers?

7716 PE Ratio vs Peers
The above table shows the PE ratio for 7716 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average12.7x
6849 Nihon Kohden
11x3.2%JP¥248.3b
6951 JEOL
17.2x11.8%JP¥253.3b
7817 Paramount Bed Holdings
15.4x4.8%JP¥144.8b
6960 Fukuda Denshi
7x-1.7%JP¥114.8b
7716 Nakanishi
20.2x8.6%JP¥232.0b

Price-To-Earnings vs Peers: 7716 is expensive based on its Price-To-Earnings Ratio (20.2x) compared to the peer average (12.7x).


Price to Earnings Ratio vs Industry

How does 7716's PE Ratio compare vs other companies in the JP Medical Equipment Industry?

Price-To-Earnings vs Industry: 7716 is expensive based on its Price-To-Earnings Ratio (20.2x) compared to the JP Medical Equipment industry average (14.5x)


Price to Earnings Ratio vs Fair Ratio

What is 7716'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.

7716 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.2x
Fair PE Ratio20.9x

Price-To-Earnings vs Fair Ratio: 7716 is good value based on its Price-To-Earnings Ratio (20.2x) compared to the estimated Fair Price-To-Earnings Ratio (20.9x).


Share Price vs Fair Value

What is the Fair Price of 7716 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 7716 (¥2713) is trading below our estimate of fair value (¥4538.7)

Significantly Below Fair Value: 7716 is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

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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