Nippon Fine Chemical Co., Ltd.

TSE:4362 Stock Report

Market Cap: JP¥56.7b

Nippon Fine Chemical Valuation

Is 4362 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 4362 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 4362 (¥2518) is trading below our estimate of fair value (¥9739.68)

Significantly Below Fair Value: 4362 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 4362?

Key metric: As 4362 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 4362. This is calculated by dividing 4362's market cap by their current earnings.
What is 4362's PE Ratio?
PE Ratio15.6x
EarningsJP¥3.62b
Market CapJP¥56.65b

Price to Earnings Ratio vs Peers

How does 4362's PE Ratio compare to its peers?

The above table shows the PE ratio for 4362 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average12.9x
4971 MEC
19.2x15.0%JP¥61.9b
4365 Matsumoto Yushi-SeiyakuLtd
6.5xn/aJP¥52.2b
4008 Sumitomo Seika Chemicals Company
9.6xn/aJP¥63.8b
4027 Tayca
16.4xn/aJP¥36.1b
4362 Nippon Fine Chemical
15.6x7.9%JP¥56.7b

Price-To-Earnings vs Peers: 4362 is expensive based on its Price-To-Earnings Ratio (15.6x) compared to the peer average (12.9x).

Price to Earnings Ratio vs Industry

How does 4362'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
4362 15.6xIndustry Avg. 12.1xNo. of Companies19PE0612182430+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 4362 is expensive based on its Price-To-Earnings Ratio (15.6x) compared to the JP Chemicals industry average (12.1x).

Price to Earnings Ratio vs Fair Ratio

What is 4362'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.

4362 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.6x
Fair PE Ratio10.6x

Price-To-Earnings vs Fair Ratio: 4362 is expensive based on its Price-To-Earnings Ratio (15.6x) compared to the estimated Fair Price-To-Earnings Ratio (10.6x).

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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