Dai-ichi Life Holdings (TSE:8750) Valuation Check After Continued November Share Buybacks

Dai-ichi Life Holdings (TSE:8750) kept its buyback engine running in November, scooping up more than 5.7 million shares under its sizeable repurchase plan. For investors, this sustained capital return raises fresh questions about valuation.

See our latest analysis for Dai-ichi Life Holdings.

The latest repurchases come after a strong run, with a roughly 12 percent 1 month share price return and a 3 year total shareholder return above 100 percent, suggesting momentum in the story is still very much alive.

If Dai-ichi Life’s capital returns have you rethinking where growth and discipline meet, it could be worth exploring fast growing stocks with high insider ownership for more ideas beyond the insurance space.

With the stock up strongly over three years, still trading at a double digit discount to analyst targets and a hefty intrinsic discount, the key question now is simple: is this a fresh buying opportunity, or is the market already pricing in the next leg of growth?

Most Popular Narrative: 10.4% Undervalued

At a last close of ¥1,219.5 against a narrative fair value of ¥1,361, the valuation case leans in favor of further upside.

The analysts have a consensus price target of ¥1325.0 for Dai-ichi Life Holdings based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of ¥1560.0, and the most bearish reporting a price target of just ¥1100.0.

Read the complete narrative.

Want to see how steady revenue growth, a slow margin lift and a lower future earnings multiple still add up to upside potential? The full narrative spells it out.

Result: Fair Value of ¥1,361 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this upside relies on benign conditions, and persistent low rates or currency volatility across its growing overseas book could quickly undermine the rebound case.

Find out about the key risks to this Dai-ichi Life Holdings narrative.

Build Your Own Dai-ichi Life Holdings Narrative

If you see the story differently or want to test your own assumptions against the numbers, you can build a personalized view in just minutes with Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Dai-ichi Life Holdings.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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