ARE Holdings Valuation

Is 5857 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • 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 5857 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 5857 (¥1787) is trading above our estimate of fair value (¥1048.94)

Significantly Below Fair Value: 5857 is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 5857?

Key metric: As 5857 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 5857. This is calculated by dividing 5857's market cap by their current earnings.
What is 5857's PE Ratio?
PE Ratio13.9x
EarningsJP¥9.86b
Market CapJP¥135.68b

Price to Earnings Ratio vs Peers

How does 5857's PE Ratio compare to its peers?

The above table shows the PE ratio for 5857 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average26.8x
5423 Tokyo Steel Manufacturing
7x3.5%JP¥155.9b
7485 Okaya
5.5x5.3%JP¥134.5b
5449 Osaka Steel
65.3xn/aJP¥130.6b
5451 Yodogawa Steel Works
29.4xn/aJP¥148.9b
5857 ARE Holdings
13.9x13.8%JP¥136.9b

Price-To-Earnings vs Peers: 5857 is good value based on its Price-To-Earnings Ratio (13.9x) compared to the peer average (26.8x).


Price to Earnings Ratio vs Industry

How does 5857's PE Ratio compare vs other companies in the JP Metals and Mining Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
5857 13.9xIndustry Avg. 8.9xNo. of Companies13PE0612182430+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 5857 is expensive based on its Price-To-Earnings Ratio (13.9x) compared to the JP Metals and Mining industry average (8.9x).


Price to Earnings Ratio vs Fair Ratio

What is 5857'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.

5857 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.9x
Fair PE Ratio12.2x

Price-To-Earnings vs Fair Ratio: 5857 is expensive based on its Price-To-Earnings Ratio (13.9x) compared to the estimated Fair Price-To-Earnings Ratio (12.2x).


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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