Zeon Corporation

TSE:4205 Stock Report

Market Cap: JP¥297.1b

Zeon Valuation

Is 4205 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 4205 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 4205 (¥1436) is trading above our estimate of fair value (¥1177.84)

Significantly Below Fair Value: 4205 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 4205?

Key metric: As 4205 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 4205. This is calculated by dividing 4205's market cap by their current earnings.
What is 4205's PE Ratio?
PE Ratio9.1x
EarningsJP¥33.04b
Market CapJP¥297.05b

Price to Earnings Ratio vs Peers

How does 4205's PE Ratio compare to its peers?

The above table shows the PE ratio for 4205 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14x
4401 Adeka
12x10.6%JP¥288.0b
4118 Kaneka
8.8x9.1%JP¥215.0b
7966 LINTEC
14.9x11.1%JP¥209.4b
5301 Tokai Carbon
20.5x29.6%JP¥199.5b
4205 Zeon
9.1x0.06%JP¥297.1b

Price-To-Earnings vs Peers: 4205 is good value based on its Price-To-Earnings Ratio (9.1x) compared to the peer average (14x).

Price to Earnings Ratio vs Industry

How does 4205'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
4205 9.1xIndustry Avg. 12.1xNo. of Companies19PE0612182430+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 4205 is good value based on its Price-To-Earnings Ratio (9.1x) compared to the JP Chemicals industry average (12.1x).

Price to Earnings Ratio vs Fair Ratio

What is 4205'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.

4205 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.1x
Fair PE Ratio10.7x

Price-To-Earnings vs Fair Ratio: 4205 is good value based on its Price-To-Earnings Ratio (9.1x) compared to the estimated Fair Price-To-Earnings Ratio (10.7x).

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 4205 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥1,436.00
JP¥1,556.67
+8.4%
10.9%JP¥1,800.00JP¥1,200.00n/a9
Nov ’25JP¥1,433.00
JP¥1,512.22
+5.5%
11.8%JP¥1,800.00JP¥1,200.00n/a9
Oct ’25JP¥1,376.00
JP¥1,510.00
+9.7%
11.7%JP¥1,800.00JP¥1,200.00n/a9
Sep ’25JP¥1,201.50
JP¥1,495.56
+24.5%
11.8%JP¥1,800.00JP¥1,200.00n/a9
Aug ’25JP¥1,285.50
JP¥1,526.67
+18.8%
10.9%JP¥1,800.00JP¥1,200.00n/a9
Jul ’25JP¥1,352.50
JP¥1,546.67
+14.4%
10.3%JP¥1,800.00JP¥1,200.00n/a9
Jun ’25JP¥1,455.50
JP¥1,502.22
+3.2%
9.1%JP¥1,700.00JP¥1,200.00n/a9
May ’25JP¥1,539.00
JP¥1,482.22
-3.7%
9.4%JP¥1,720.00JP¥1,200.00n/a9
Apr ’25JP¥1,312.00
JP¥1,464.44
+11.6%
10.7%JP¥1,720.00JP¥1,150.00n/a9
Mar ’25JP¥1,276.00
JP¥1,464.44
+14.8%
10.7%JP¥1,720.00JP¥1,150.00n/a9
Feb ’25JP¥1,328.50
JP¥1,488.89
+12.1%
10.8%JP¥1,720.00JP¥1,150.00n/a9
Jan ’25JP¥1,310.50
JP¥1,540.00
+17.5%
9.8%JP¥1,800.00JP¥1,300.00n/a9
Dec ’24JP¥1,360.00
JP¥1,601.11
+17.7%
11.0%JP¥1,800.00JP¥1,300.00n/a9
Nov ’24JP¥1,262.50
JP¥1,647.78
+30.5%
11.8%JP¥1,810.00JP¥1,300.00JP¥1,433.009
Oct ’24JP¥1,563.00
JP¥1,614.44
+3.3%
15.2%JP¥1,810.00JP¥1,000.00JP¥1,376.009
Sep ’24JP¥1,611.50
JP¥1,606.67
-0.3%
15.1%JP¥1,810.00JP¥1,000.00JP¥1,201.509
Aug ’24JP¥1,523.50
JP¥1,544.44
+1.4%
13.6%JP¥1,800.00JP¥1,000.00JP¥1,285.509
Jul ’24JP¥1,389.50
JP¥1,547.78
+11.4%
11.3%JP¥1,660.00JP¥1,070.00JP¥1,352.509
Jun ’24JP¥1,451.00
JP¥1,547.78
+6.7%
11.3%JP¥1,660.00JP¥1,070.00JP¥1,455.509
May ’24JP¥1,417.00
JP¥1,546.67
+9.2%
11.5%JP¥1,700.00JP¥1,070.00JP¥1,539.009
Apr ’24JP¥1,399.00
JP¥1,535.56
+9.8%
11.9%JP¥1,700.00JP¥1,070.00JP¥1,312.009
Mar ’24JP¥1,307.00
JP¥1,571.25
+20.2%
15.7%JP¥2,000.00JP¥1,070.00JP¥1,276.008
Feb ’24JP¥1,222.00
JP¥1,642.50
+34.4%
16.8%JP¥2,000.00JP¥1,070.00JP¥1,328.508
Jan ’24JP¥1,336.00
JP¥1,700.00
+27.2%
13.7%JP¥2,000.00JP¥1,300.00JP¥1,310.509
Dec ’23JP¥1,345.00
JP¥1,690.00
+25.7%
13.2%JP¥2,000.00JP¥1,300.00JP¥1,360.0010
Nov ’23JP¥1,297.00
JP¥1,713.00
+32.1%
13.9%JP¥2,070.00JP¥1,300.00JP¥1,262.5010

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

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