Kuraray Co., Ltd.

TSE:3405 Stock Report

Market Cap: JP¥730.4b

Kuraray Valuation

Is 3405 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 3405 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3405 (¥2187) is trading below our estimate of fair value (¥4922.76)

Significantly Below Fair Value: 3405 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3405?

Key metric: As 3405 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 3405. This is calculated by dividing 3405's market cap by their current earnings.
What is 3405's PE Ratio?
PE Ratio13.5x
EarningsJP¥52.59b
Market CapJP¥730.45b

Price to Earnings Ratio vs Peers

How does 3405's PE Ratio compare to its peers?

The above table shows the PE ratio for 3405 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.2x
4042 Tosoh
11.7x7.8%JP¥650.4b
4183 Mitsui Chemicals
12x18.7%JP¥620.7b
3407 Asahi Kasei
20.2x18.7%JP¥1.5t
3402 Toray Industries
32.7x19.9%JP¥1.6t
3405 Kuraray
13.5x11.5%JP¥730.4b

Price-To-Earnings vs Peers: 3405 is good value based on its Price-To-Earnings Ratio (13.5x) compared to the peer average (19.2x).

Price to Earnings Ratio vs Industry

How does 3405's PE Ratio compare vs other companies in the JP Chemicals Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
4119 Nippon Pigment Holdings
0.7xn/aUS$31.00m
No more companies available in this PE range
3405 13.5xIndustry Avg. 11.9xNo. of Companies20PE0612182430+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 3405 is expensive based on its Price-To-Earnings Ratio (13.5x) compared to the JP Chemicals industry average (11.9x).

Price to Earnings Ratio vs Fair Ratio

What is 3405'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.

3405 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.5x
Fair PE Ratio15.5x

Price-To-Earnings vs Fair Ratio: 3405 is good value based on its Price-To-Earnings Ratio (13.5x) compared to the estimated Fair Price-To-Earnings Ratio (15.5x).

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 3405 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥2,187.00
JP¥2,405.00
+10.0%
13.3%JP¥3,000.00JP¥1,920.00n/a10
Dec ’25JP¥2,032.50
JP¥2,336.00
+14.9%
11.3%JP¥2,640.00JP¥1,920.00n/a10
Nov ’25JP¥2,054.00
JP¥2,332.00
+13.5%
11.8%JP¥2,730.00JP¥1,920.00n/a10
Oct ’25JP¥2,142.50
JP¥2,302.00
+7.4%
14.4%JP¥2,730.00JP¥1,620.00n/a10
Sep ’25JP¥1,910.00
JP¥2,162.00
+13.2%
16.7%JP¥2,730.00JP¥1,620.00n/a10
Aug ’25JP¥1,819.50
JP¥2,122.00
+16.6%
15.2%JP¥2,640.00JP¥1,620.00n/a10
Jul ’25JP¥1,868.50
JP¥2,101.00
+12.4%
15.1%JP¥2,640.00JP¥1,620.00n/a10
Jun ’25JP¥1,910.50
JP¥1,911.00
+0.03%
16.2%JP¥2,550.00JP¥1,550.00n/a10
May ’25JP¥1,707.00
JP¥1,898.89
+11.2%
14.8%JP¥2,330.00JP¥1,550.00n/a9
Apr ’25JP¥1,607.00
JP¥1,904.44
+18.5%
14.4%JP¥2,330.00JP¥1,570.00n/a9
Mar ’25JP¥1,521.00
JP¥1,894.00
+24.5%
13.8%JP¥2,330.00JP¥1,570.00n/a10
Feb ’25JP¥1,531.00
JP¥1,853.00
+21.0%
13.2%JP¥2,200.00JP¥1,470.00n/a10
Jan ’25JP¥1,425.50
JP¥1,900.00
+33.3%
11.9%JP¥2,200.00JP¥1,470.00n/a9
Dec ’24JP¥1,513.50
JP¥1,966.67
+29.9%
12.6%JP¥2,300.00JP¥1,470.00JP¥2,032.509
Nov ’24JP¥1,736.50
JP¥2,008.89
+15.7%
11.5%JP¥2,380.00JP¥1,720.00JP¥2,054.009
Oct ’24JP¥1,771.00
JP¥1,918.75
+8.3%
14.1%JP¥2,300.00JP¥1,400.00JP¥2,142.508
Sep ’24JP¥1,689.50
JP¥1,825.00
+8.0%
14.3%JP¥2,200.00JP¥1,400.00JP¥1,910.008
Aug ’24JP¥1,432.00
JP¥1,601.25
+11.8%
18.9%JP¥2,100.00JP¥1,200.00JP¥1,819.508
Jul ’24JP¥1,398.50
JP¥1,551.25
+10.9%
17.6%JP¥2,100.00JP¥1,200.00JP¥1,868.508
Jun ’24JP¥1,303.00
JP¥1,513.75
+16.2%
13.7%JP¥1,800.00JP¥1,200.00JP¥1,910.508
May ’24JP¥1,267.00
JP¥1,481.25
+16.9%
13.2%JP¥1,800.00JP¥1,200.00JP¥1,707.008
Apr ’24JP¥1,217.00
JP¥1,356.25
+11.4%
22.4%JP¥1,800.00JP¥910.00JP¥1,607.008
Mar ’24JP¥1,240.00
JP¥1,331.25
+7.4%
21.2%JP¥1,800.00JP¥910.00JP¥1,521.008
Feb ’24JP¥1,067.00
JP¥1,220.00
+14.3%
19.6%JP¥1,600.00JP¥910.00JP¥1,531.008
Jan ’24JP¥1,058.00
JP¥1,226.25
+15.9%
19.2%JP¥1,600.00JP¥910.00JP¥1,425.508
Dec ’23JP¥1,083.00
JP¥1,185.00
+9.4%
17.2%JP¥1,600.00JP¥950.00JP¥1,513.508

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 Analysis2024/12/19 07:39
End of Day Share Price 2024/12/19 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

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

Kuraray Co., Ltd. is covered by 26 analysts. 10 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
Kei RameauBNP Paribas Securities (Asia)