Sumitomo Seika Chemicals Company Valuation

Q: What is the Fair Price of 4008 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

4008 (¥4835) is trading below our estimate of [[fair value]] (¥10925.26)

Is 4008 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 4008 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 4008 (¥4835) is trading below our estimate of fair value (¥10925.26)

Significantly Below Fair Value: 4008 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 4008?

Key metric: As 4008 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 4008. This is calculated by dividing 4008's market cap by their current earnings.
What is 4008's PE Ratio?
PE Ratio	9.7x
Earnings	JP¥6.63b
Market Cap	JP¥63.81b

4008 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/Revenue	0.4x
Enterprise Value/EBITDA	3.5x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 4008's PE Ratio compare to its peers?

The above table shows the PE ratio for 4008 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	12.6x
4633 Sakata INX	8.4x	7.6%	JP¥75.8b
4971 MEC	19.9x	15.0%	JP¥61.9b
4365 Matsumoto Yushi-SeiyakuLtd	6.5x	n/a	JP¥52.2b
4362 Nippon Fine Chemical	15.6x	7.9%	JP¥56.7b
4008 Sumitomo Seika Chemicals Company	9.7x	n/a	JP¥63.8b

Price-To-Earnings vs Peers: 4008 is good value based on its Price-To-Earnings Ratio (9.7x) compared to the peer average (12.6x).

Price to Earnings Ratio vs Industry

How does 4008's PE Ratio compare vs other companies in the JP Chemicals Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap
4119 Nippon Pigment Holdings	0.7x	n/a	US$31.09m

No more companies available in this PE range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 4008 is good value based on its Price-To-Earnings Ratio (9.7x) compared to the JP Chemicals industry average (12x).

Price to Earnings Ratio vs Fair Ratio

What is 4008'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.

4008 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	9.7x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 4008's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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