Nippon Shokubai Co., Ltd.

TSE:4114 Stock Report

Market Cap: JP¥280.2b

Nippon Shokubai Valuation

Is 4114 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 4114 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 4114 (¥1850) is trading below our estimate of fair value (¥2327.23)

Significantly Below Fair Value: 4114 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 4114?

Key metric: As 4114 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 4114. This is calculated by dividing 4114's market cap by their current earnings.
What is 4114's PE Ratio?
PE Ratio21.4x
EarningsJP¥13.07b
Market CapJP¥280.20b

Price to Earnings Ratio vs Peers

How does 4114's PE Ratio compare to its peers?

The above table shows the PE ratio for 4114 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.9x
4626 Taiyo Holdings
19.9x14.8%JP¥231.7b
4203 Sumitomo Bakelite
15x10.3%JP¥352.1b
4206 Aica Kogyo Company
12.8x6.2%JP¥211.8b
4272 Nippon Kayaku
51.9x38.6%JP¥207.3b
4114 Nippon Shokubai
21.4x9.5%JP¥280.2b

Price-To-Earnings vs Peers: 4114 is good value based on its Price-To-Earnings Ratio (21.4x) compared to the peer average (24.9x).

Price to Earnings Ratio vs Industry

How does 4114's PE Ratio compare vs other companies in the JP Chemicals Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
4119 Nippon Pigment Holdings
0.7xn/aUS$31.08m
No more companies available in this PE range
4114 21.4xIndustry Avg. 12.1xNo. of Companies19PE0612182430+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 4114 is expensive based on its Price-To-Earnings Ratio (21.4x) compared to the JP Chemicals industry average (12.1x).

Price to Earnings Ratio vs Fair Ratio

What is 4114'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.

4114 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.4x
Fair PE Ratio12.1x

Price-To-Earnings vs Fair Ratio: 4114 is expensive based on its Price-To-Earnings Ratio (21.4x) compared to the estimated Fair Price-To-Earnings Ratio (12.1x).

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 4114 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥1,850.00
JP¥1,657.50
-10.4%
12.1%JP¥2,000.00JP¥1,510.00n/a4
Nov ’25JP¥1,694.00
JP¥1,632.50
-3.6%
13.6%JP¥2,000.00JP¥1,410.00n/a4
Oct ’25JP¥1,757.50
JP¥1,577.50
-10.2%
16.9%JP¥2,000.00JP¥1,300.00n/a4
Sep ’25JP¥1,682.50
JP¥1,577.50
-6.2%
16.9%JP¥2,000.00JP¥1,300.00n/a4
Aug ’25JP¥1,575.50
JP¥1,547.50
-1.8%
17.5%JP¥2,000.00JP¥1,300.00n/a4
Jul ’25JP¥1,625.00
JP¥1,500.63
-7.7%
21.4%JP¥2,000.00JP¥1,112.50n/a4
Jun ’25JP¥1,656.00
JP¥1,398.88
-15.5%
17.6%JP¥1,750.00JP¥1,112.50n/a4
May ’25JP¥1,501.50
JP¥1,373.88
-8.5%
17.5%JP¥1,750.00JP¥1,112.50n/a4
Apr ’25JP¥1,450.00
JP¥1,373.88
-5.3%
17.5%JP¥1,750.00JP¥1,112.50n/a4
Mar ’25JP¥1,410.50
JP¥1,373.75
-2.6%
17.5%JP¥1,750.00JP¥1,112.50n/a4
Feb ’25JP¥1,380.00
JP¥1,343.75
-2.6%
18.7%JP¥1,750.00JP¥1,112.50n/a4
Jan ’25JP¥1,358.50
JP¥1,343.75
-1.1%
18.7%JP¥1,750.00JP¥1,112.50n/a4
Dec ’24JP¥1,335.00
JP¥1,512.50
+13.3%
25.4%JP¥2,000.00JP¥1,112.50n/a4
Nov ’24JP¥1,400.25
JP¥1,620.63
+15.7%
18.0%JP¥2,000.00JP¥1,232.50JP¥1,694.004
Oct ’24JP¥1,357.50
JP¥1,569.17
+15.6%
20.4%JP¥2,000.00JP¥1,232.50JP¥1,757.503
Sep ’24JP¥1,395.25
JP¥1,576.67
+13.0%
19.8%JP¥2,000.00JP¥1,255.00JP¥1,682.503
Aug ’24JP¥1,363.50
JP¥1,576.67
+15.6%
19.8%JP¥2,000.00JP¥1,255.00JP¥1,575.503
Jul ’24JP¥1,342.50
JP¥1,798.33
+34.0%
12.8%JP¥2,000.00JP¥1,475.00JP¥1,625.003
Jun ’24JP¥1,297.50
JP¥1,823.33
+40.5%
13.9%JP¥2,075.00JP¥1,475.00JP¥1,656.003
May ’24JP¥1,377.50
JP¥1,848.33
+34.2%
11.9%JP¥2,075.00JP¥1,550.00JP¥1,501.503
Apr ’24JP¥1,320.00
JP¥1,848.33
+40.0%
11.9%JP¥2,075.00JP¥1,550.00JP¥1,450.003
Mar ’24JP¥1,417.50
JP¥1,906.67
+34.5%
7.0%JP¥2,075.00JP¥1,750.00JP¥1,410.503
Feb ’24JP¥1,372.50
JP¥1,890.00
+37.7%
8.1%JP¥2,075.00JP¥1,700.00JP¥1,380.003
Jan ’24JP¥1,320.00
JP¥1,882.50
+42.6%
8.1%JP¥2,075.00JP¥1,700.00JP¥1,358.503
Dec ’23JP¥1,367.50
JP¥1,882.50
+37.7%
8.1%JP¥2,075.00JP¥1,700.00JP¥1,335.003
Nov ’23JP¥1,320.00
JP¥1,841.67
+39.5%
6.7%JP¥2,000.00JP¥1,700.00JP¥1,400.253

Analyst Forecast: Target price is lower than the current share price.

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