Toho Zinc Valuation

Q: What is the Fair Price of 5707 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

5707 (¥797) is trading above our estimate of [[fair value]] (¥368.31)

Is 5707 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-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 5707 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 5707 (¥797) is trading above our estimate of fair value (¥368.31)

Significantly Below Fair Value: 5707 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 5707?

Key metric: As 5707 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 5707. This is calculated by dividing 5707's market cap by their current revenue.
What is 5707's PS Ratio?
PS Ratio	0.08x
Sales	JP¥134.41b
Market Cap	JP¥10.82b

5707 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	0.6x
Enterprise Value/EBITDA	9.5x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 5707's PS Ratio compare to its peers?

The above table shows the PS ratio for 5707 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	0.4x
3168 Kurotani	0.09x	n/a	JP¥7.8b
5729 Nihon Seiko	0.4x	n/a	JP¥7.2b
5757 CK SAN-ETSU	0.3x	n/a	JP¥30.7b
5781 Toho Kinzoku	0.9x	n/a	JP¥4.3b
5707 Toho Zinc	0.08x	0.1%	JP¥10.8b

Price-To-Sales vs Peers: 5707 is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (0.4x).

Price to Sales Ratio vs Industry

How does 5707's PS Ratio compare vs other companies in the JP Metals and Mining Industry?

5 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	0.3x	2.1%
5707 Toho Zinc	0.08x	0.1%	US$70.03m
1491 Chugai Mining	0.07x	n/a	US$59.68m
3168 Kurotani	0.09x	n/a	US$50.44m

5 Companies		Estimated Growth	Market Cap
Industry Avg.	0.3x	7.9%
5707 Toho Zinc	0.08x	78.3%	US$70.03m

No more companies

Price-To-Sales vs Industry: 5707 is good value based on its Price-To-Sales Ratio (0.1x) compared to the JP Metals and Mining industry average (0.3x).

Price to Sales Ratio vs Fair Ratio

What is 5707's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

5707 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.08x
Fair PS Ratio	0.2x

Price-To-Sales vs Fair Ratio: 5707 is good value based on its Price-To-Sales Ratio (0.1x) compared to the estimated Fair Price-To-Sales Ratio (0.2x).

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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