Toray Industries, Inc.

TSE:3402 Stock Report

Market Cap: JP¥1.6t

Toray Industries Valuation

Is 3402 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • 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 3402 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3402 (¥996.1) is trading below our estimate of fair value (¥1050.07)

Significantly Below Fair Value: 3402 is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3402?

Key metric: As 3402 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 3402. This is calculated by dividing 3402's market cap by their current earnings.
What is 3402's PE Ratio?
PE Ratio32.9x
EarningsJP¥48.55b
Market CapJP¥1.60t

Price to Earnings Ratio vs Peers

How does 3402's PE Ratio compare to its peers?

The above table shows the PE ratio for 3402 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14.5x
3407 Asahi Kasei
20.3x18.7%JP¥1.5t
3405 Kuraray
13.9x11.5%JP¥730.4b
4042 Tosoh
11.7x7.8%JP¥650.4b
4183 Mitsui Chemicals
12x18.7%JP¥620.7b
3402 Toray Industries
32.9x19.9%JP¥1.6t

Price-To-Earnings vs Peers: 3402 is expensive based on its Price-To-Earnings Ratio (32.9x) compared to the peer average (14.5x).

Price to Earnings Ratio vs Industry

How does 3402's PE Ratio compare vs other companies in the JP Chemicals Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
4119 Nippon Pigment Holdings
0.7xn/aUS$31.21m
No more companies available in this PE range
3402 32.9xIndustry Avg. 11.9xNo. of Companies20PE0612182430+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 3402 is expensive based on its Price-To-Earnings Ratio (32.9x) compared to the JP Chemicals industry average (11.8x).

Price to Earnings Ratio vs Fair Ratio

What is 3402'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.

3402 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio32.9x
Fair PE Ratio19.3x

Price-To-Earnings vs Fair Ratio: 3402 is expensive based on its Price-To-Earnings Ratio (32.9x) compared to the estimated Fair Price-To-Earnings Ratio (19.3x).

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 3402 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥996.10
JP¥1,051.82
+5.6%
13.9%JP¥1,300.00JP¥870.00n/a11
Dec ’25JP¥954.30
JP¥1,004.55
+5.3%
16.2%JP¥1,300.00JP¥730.00n/a11
Nov ’25JP¥817.50
JP¥932.73
+14.1%
10.9%JP¥1,130.00JP¥730.00n/a11
Oct ’25JP¥843.30
JP¥902.50
+7.0%
12.8%JP¥1,130.00JP¥660.00n/a12
Sep ’25JP¥750.40
JP¥894.17
+19.2%
12.5%JP¥1,130.00JP¥660.00n/a12
Aug ’25JP¥775.30
JP¥878.33
+13.3%
10.5%JP¥1,030.00JP¥660.00n/a12
Jul ’25JP¥762.00
JP¥877.27
+15.1%
11.0%JP¥1,030.00JP¥660.00n/a11
Jun ’25JP¥785.80
JP¥871.67
+10.9%
10.9%JP¥1,030.00JP¥650.00n/a12
May ’25JP¥720.20
JP¥842.50
+17.0%
12.7%JP¥1,030.00JP¥650.00n/a12
Apr ’25JP¥714.90
JP¥847.50
+18.5%
12.7%JP¥1,030.00JP¥650.00n/a12
Mar ’25JP¥694.00
JP¥856.36
+23.4%
14.0%JP¥1,030.00JP¥650.00n/a11
Feb ’25JP¥735.00
JP¥900.00
+22.4%
12.3%JP¥1,050.00JP¥650.00n/a11
Jan ’25JP¥733.10
JP¥891.82
+21.7%
11.5%JP¥1,000.00JP¥650.00n/a11
Dec ’24JP¥767.80
JP¥890.00
+15.9%
11.0%JP¥1,000.00JP¥650.00JP¥954.3012
Nov ’24JP¥741.10
JP¥902.50
+21.8%
9.9%JP¥1,000.00JP¥650.00JP¥817.5012
Oct ’24JP¥778.00
JP¥904.17
+16.2%
9.9%JP¥1,000.00JP¥650.00JP¥843.3012
Sep ’24JP¥796.30
JP¥882.50
+10.8%
11.2%JP¥1,000.00JP¥670.00JP¥750.4012
Aug ’24JP¥799.70
JP¥881.67
+10.2%
11.1%JP¥1,000.00JP¥670.00JP¥775.3012
Jul ’24JP¥800.40
JP¥880.77
+10.0%
10.7%JP¥1,000.00JP¥670.00JP¥762.0013
Jun ’24JP¥731.40
JP¥871.54
+19.2%
12.2%JP¥1,000.00JP¥620.00JP¥785.8013
May ’24JP¥770.00
JP¥879.23
+14.2%
13.1%JP¥1,030.00JP¥620.00JP¥720.2013
Apr ’24JP¥756.40
JP¥879.23
+16.2%
13.1%JP¥1,030.00JP¥620.00JP¥714.9013
Mar ’24JP¥786.10
JP¥895.83
+14.0%
12.1%JP¥1,030.00JP¥610.00JP¥694.0012
Feb ’24JP¥792.00
JP¥895.00
+13.0%
12.2%JP¥1,030.00JP¥610.00JP¥735.0012
Jan ’24JP¥736.60
JP¥895.83
+21.6%
12.0%JP¥1,050.00JP¥620.00JP¥733.1012
Dec ’23JP¥737.10
JP¥887.69
+20.4%
12.0%JP¥1,050.00JP¥620.00JP¥767.8013

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/18 01:12
End of Day Share Price 2024/12/18 00:00
Earnings2024/09/30
Annual Earnings2024/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Toray Industries, Inc. is covered by 29 analysts. 12 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Toshiro YoshinagaAizawa Securities Co. Ltd.
Mikiya YamadaBarclays
Takashi EnomotoBofA Global Research