MS&AD Insurance Group Holdings, Inc.

TSE:8725 Stock Report

Market Cap: JP¥5.3t

MS&AD Insurance Group Holdings Valuation

Is 8725 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 8725 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 8725 (¥3507) is trading below our estimate of fair value (¥9910.94)

Significantly Below Fair Value: 8725 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 8725?

Key metric: As 8725 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 8725. This is calculated by dividing 8725's market cap by their current earnings.
What is 8725's PE Ratio?
PE Ratio7.2x
EarningsJP¥740.74b
Market CapJP¥5.26t

Price to Earnings Ratio vs Peers

How does 8725's PE Ratio compare to its peers?

The above table shows the PE ratio for 8725 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average10.9x
8630 Sompo Holdings
7.3x-1.0%JP¥4.0t
8766 Tokio Marine Holdings
9.7x-2.1%JP¥11.1t
8750 Dai-ichi Life Holdings
10.1x1.2%JP¥4.0t
6178 Japan Post Holdings
16.6x13.1%JP¥4.7t
8725 MS&AD Insurance Group Holdings
7.2x0.1%JP¥5.3t

Price-To-Earnings vs Peers: 8725 is good value based on its Price-To-Earnings Ratio (7.2x) compared to the peer average (10.9x).

Price to Earnings Ratio vs Industry

How does 8725's PE Ratio compare vs other companies in the Asian Insurance Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
8725 7.2xIndustry Avg. 10.8xNo. of Companies44PE0816243240+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 8725 is good value based on its Price-To-Earnings Ratio (7.2x) compared to the Asian Insurance industry average (10.8x).

Price to Earnings Ratio vs Fair Ratio

What is 8725'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.

8725 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.2x
Fair PE Ratio11.1x

Price-To-Earnings vs Fair Ratio: 8725 is good value based on its Price-To-Earnings Ratio (7.2x) compared to the estimated Fair Price-To-Earnings Ratio (11.1x).

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 8725 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥3,507.00
JP¥3,784.17
+7.9%
14.9%JP¥5,000.00JP¥3,200.00n/a12
Nov ’25JP¥3,355.00
JP¥3,740.83
+11.5%
15.7%JP¥5,000.00JP¥3,080.00n/a12
Oct ’25JP¥3,389.00
JP¥3,753.33
+10.8%
15.5%JP¥5,000.00JP¥3,080.00n/a12
Sep ’25JP¥3,345.00
JP¥3,611.82
+8.0%
21.3%JP¥5,000.00JP¥2,000.00n/a11
Aug ’25JP¥3,425.00
JP¥3,611.82
+5.5%
21.3%JP¥5,000.00JP¥2,000.00n/a11
Jul ’25JP¥3,713.00
JP¥3,275.15
-11.8%
26.3%JP¥5,000.00JP¥2,000.00n/a11
Jun ’25JP¥3,281.00
JP¥2,750.06
-16.2%
20.6%JP¥4,000.00JP¥2,000.00n/a11
May ’25JP¥2,817.00
JP¥2,650.00
-5.9%
17.1%JP¥3,500.00JP¥2,000.00n/a11
Apr ’25JP¥2,614.00
JP¥2,561.42
-2.0%
17.7%JP¥3,366.67JP¥1,933.33n/a12
Mar ’25JP¥2,502.33
JP¥2,109.09
-15.7%
11.8%JP¥2,566.67JP¥1,756.67n/a11
Feb ’25JP¥2,022.67
JP¥1,987.88
-1.7%
11.0%JP¥2,466.67JP¥1,666.67n/a11
Jan ’25JP¥1,848.67
JP¥1,988.33
+7.6%
9.8%JP¥2,433.33JP¥1,666.67n/a12
Dec ’24JP¥1,860.67
JP¥1,960.77
+5.4%
10.2%JP¥2,433.33JP¥1,666.67JP¥3,341.0013
Nov ’24JP¥1,874.67
JP¥1,942.56
+3.6%
12.0%JP¥2,433.33JP¥1,566.67JP¥3,355.0013
Oct ’24JP¥1,831.67
JP¥1,895.56
+3.5%
12.8%JP¥2,433.33JP¥1,566.67JP¥3,389.0012
Sep ’24JP¥1,776.67
JP¥1,877.22
+5.7%
13.2%JP¥2,433.33JP¥1,566.67JP¥3,345.0012
Aug ’24JP¥1,768.00
JP¥1,861.52
+5.3%
14.7%JP¥2,433.33JP¥1,566.67JP¥3,425.0011
Jul ’24JP¥1,698.67
JP¥1,799.70
+5.9%
11.4%JP¥2,166.67JP¥1,566.67JP¥3,713.0011
Jun ’24JP¥1,608.33
JP¥1,629.67
+1.3%
11.1%JP¥1,946.67JP¥1,353.33JP¥3,281.0010
May ’24JP¥1,500.33
JP¥1,622.22
+8.1%
10.2%JP¥1,866.67JP¥1,353.33JP¥2,817.0012
Apr ’24JP¥1,368.67
JP¥1,617.33
+18.2%
11.1%JP¥1,866.67JP¥1,353.33JP¥2,614.0010
Mar ’24JP¥1,502.67
JP¥1,565.33
+4.2%
9.3%JP¥1,753.33JP¥1,333.33JP¥2,502.3310
Feb ’24JP¥1,400.67
JP¥1,550.61
+10.7%
8.9%JP¥1,753.33JP¥1,333.33JP¥2,022.6711
Jan ’24JP¥1,408.00
JP¥1,559.23
+10.7%
8.5%JP¥1,766.67JP¥1,333.33JP¥1,848.6713
Dec ’23JP¥1,331.67
JP¥1,571.54
+18.0%
8.0%JP¥1,766.67JP¥1,360.00JP¥1,860.6713

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

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