Shin-Etsu Chemical Co., Ltd.

TSE:4063 Stock Report

Market Cap: JP¥11.1t

Shin-Etsu Chemical Valuation

Is 4063 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 4063 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 4063 (¥5588) is trading below our estimate of fair value (¥6733.47)

Significantly Below Fair Value: 4063 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 4063?

Key metric: As 4063 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 4063. This is calculated by dividing 4063's market cap by their current earnings.
What is 4063's PE Ratio?
PE Ratio21.6x
EarningsJP¥512.82b
Market CapJP¥11.13t

Price to Earnings Ratio vs Peers

How does 4063's PE Ratio compare to its peers?

The above table shows the PE ratio for 4063 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15.5x
4612 Nippon Paint Holdings
18.9x8.1%JP¥2.3t
6988 Nitto Denko
12.2x2.1%JP¥1.7t
4186 Tokyo Ohka Kogyo
19.9x11.7%JP¥424.2b
4613 Kansai Paint
10.8x-1.0%JP¥391.4b
4063 Shin-Etsu Chemical
21.6x10.6%JP¥11.1t

Price-To-Earnings vs Peers: 4063 is expensive based on its Price-To-Earnings Ratio (21.6x) compared to the peer average (15.5x).

Price to Earnings Ratio vs Industry

How does 4063's PE Ratio compare vs other companies in the JP Chemicals Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
4119 Nippon Pigment Holdings
0.7xn/aUS$31.05m
No more companies available in this PE range
4063 21.6xIndustry Avg. 12.1xNo. of Companies19PE0612182430+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 4063 is expensive based on its Price-To-Earnings Ratio (21.6x) compared to the JP Chemicals industry average (12.1x).

Price to Earnings Ratio vs Fair Ratio

What is 4063'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.

4063 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.6x
Fair PE Ratio21.2x

Price-To-Earnings vs Fair Ratio: 4063 is expensive based on its Price-To-Earnings Ratio (21.6x) compared to the estimated Fair Price-To-Earnings Ratio (21.2x).

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 4063 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥5,596.00
JP¥7,077.65
+26.5%
9.5%JP¥7,800.00JP¥5,500.00n/a17
Nov ’25JP¥5,574.00
JP¥7,127.65
+27.9%
9.2%JP¥7,800.00JP¥5,500.00n/a17
Oct ’25JP¥6,152.00
JP¥7,246.25
+17.8%
7.8%JP¥7,800.00JP¥6,000.00n/a16
Sep ’25JP¥6,422.00
JP¥7,240.00
+12.7%
7.5%JP¥7,800.00JP¥6,000.00n/a16
Aug ’25JP¥6,486.00
JP¥7,227.50
+11.4%
7.9%JP¥8,000.00JP¥6,000.00n/a16
Jul ’25JP¥6,238.00
JP¥7,034.38
+12.8%
7.6%JP¥7,800.00JP¥6,000.00n/a16
Jun ’25JP¥5,855.00
JP¥7,076.67
+20.9%
8.9%JP¥7,800.00JP¥5,800.00n/a15
May ’25JP¥6,074.00
JP¥7,053.33
+16.1%
9.2%JP¥7,800.00JP¥5,800.00n/a15
Apr ’25JP¥6,352.00
JP¥6,968.00
+9.7%
9.1%JP¥7,800.00JP¥5,700.00n/a15
Mar ’25JP¥6,584.00
JP¥6,284.00
-4.6%
11.4%JP¥7,300.00JP¥4,900.00n/a15
Feb ’25JP¥5,810.00
JP¥6,104.00
+5.1%
12.2%JP¥7,300.00JP¥4,900.00n/a15
Jan ’25JP¥5,917.00
JP¥5,568.33
-5.9%
11.3%JP¥6,440.00JP¥4,200.00n/a15
Dec ’24JP¥5,199.00
JP¥5,257.81
+1.1%
9.9%JP¥5,900.00JP¥4,200.00n/a16
Nov ’24JP¥4,616.00
JP¥5,094.06
+10.4%
10.6%JP¥5,700.00JP¥4,000.00JP¥5,574.0016
Oct ’24JP¥4,343.00
JP¥5,115.94
+17.8%
9.8%JP¥5,700.00JP¥4,000.00JP¥6,152.0016
Sep ’24JP¥4,645.00
JP¥5,125.94
+10.4%
9.8%JP¥5,675.00JP¥4,000.00JP¥6,422.0016
Aug ’24JP¥4,675.00
JP¥5,144.69
+10.0%
9.7%JP¥5,675.00JP¥4,000.00JP¥6,486.0016
Jul ’24JP¥4,768.00
JP¥4,949.38
+3.8%
11.1%JP¥6,000.00JP¥4,000.00JP¥6,238.0016
Jun ’24JP¥4,306.00
JP¥4,789.75
+11.2%
10.1%JP¥6,000.00JP¥4,000.00JP¥5,855.0016
May ’24JP¥3,969.00
JP¥4,704.75
+18.5%
12.5%JP¥6,000.00JP¥3,240.00JP¥6,074.0016
Apr ’24JP¥4,275.00
JP¥4,631.63
+8.3%
13.6%JP¥6,000.00JP¥3,240.00JP¥6,352.0016
Mar ’24JP¥3,815.00
JP¥4,506.63
+18.1%
16.3%JP¥6,000.00JP¥3,240.00JP¥6,584.0016
Feb ’24JP¥3,851.00
JP¥4,362.00
+13.3%
18.5%JP¥6,000.00JP¥3,190.00JP¥5,810.0015
Jan ’24JP¥3,245.00
JP¥4,262.14
+31.3%
19.7%JP¥6,060.00JP¥3,190.00JP¥5,917.0014
Dec ’23JP¥3,570.00
JP¥4,260.71
+19.3%
19.6%JP¥6,060.00JP¥3,190.00JP¥5,199.0014
Nov ’23JP¥3,125.00
JP¥4,179.60
+33.7%
18.4%JP¥6,060.00JP¥3,190.00JP¥4,616.0015

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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