ONEX Valuation

Q: What is the Fair Price of 5987 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

5987 (¥1900) is trading below our estimate of [[fair value]] (¥8969.18)

Is 5987 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 5987 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 5987 (¥1900) is trading below our estimate of fair value (¥8969.18)

Significantly Below Fair Value: 5987 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 5987?

Key metric: As 5987 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 5987. This is calculated by dividing 5987's market cap by their current revenue.
What is 5987's PS Ratio?
PS Ratio	0.6x
Sales	JP¥4.97b
Market Cap	JP¥3.15b

5987 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	4.8x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 5987's PS Ratio compare to its peers?

The above table shows the PS ratio for 5987 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	0.9x
5721 S Science Company	2.4x	n/a	JP¥3.0b
5781 Toho Kinzoku	0.9x	n/a	JP¥4.3b
5729 Nihon Seiko	0.4x	n/a	JP¥7.3b
3168 Kurotani	0.09x	n/a	JP¥7.8b
5987 ONEX	0.6x	n/a	JP¥3.1b

Price-To-Sales vs Peers: 5987 is good value based on its Price-To-Sales Ratio (0.6x) compared to the peer average (0.9x).

Price to Sales Ratio vs Industry

How does 5987's PS Ratio compare vs other companies in the JP Metals and Mining Industry?

5 Companies	Price / Sales	Estimated Growth	Market Cap
5707 Toho Zinc	0.08x	0.1%	US$71.20m
1491 Chugai Mining	0.07x	n/a	US$63.28m
3168 Kurotani	0.09x	n/a	US$50.34m
5491 Nippon Kinzoku	0.08x	n/a	US$28.27m

5 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 5987 is expensive based on its Price-To-Sales Ratio (0.6x) compared to the JP Metals and Mining industry average (0.3x).

Price to Sales Ratio vs Fair Ratio

What is 5987'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.

5987 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.6x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 5987's Price-To-Sales Fair Ratio for valuation analysis.

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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