Nitto Denko Corporation

TSE:6988 Stock Report

Market Cap: JP¥1.7t

Nitto Denko Valuation

Is 6988 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 6988 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6988 (¥2405) is trading below our estimate of fair value (¥2977.27)

Significantly Below Fair Value: 6988 is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6988?

Key metric: As 6988 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 6988. This is calculated by dividing 6988's market cap by their current earnings.
What is 6988's PE Ratio?
PE Ratio12.2x
EarningsJP¥138.44b
Market CapJP¥1.69t

Price to Earnings Ratio vs Peers

How does 6988's PE Ratio compare to its peers?

The above table shows the PE ratio for 6988 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.2x
4612 Nippon Paint Holdings
18.9x8.1%JP¥2.3t
4186 Tokyo Ohka Kogyo
20x11.7%JP¥415.7b
4203 Sumitomo Bakelite
15x10.3%JP¥352.1b
4613 Kansai Paint
10.8x-1.0%JP¥393.3b
6988 Nitto Denko
12.2x2.1%JP¥1.7t

Price-To-Earnings vs Peers: 6988 is good value based on its Price-To-Earnings Ratio (12.2x) compared to the peer average (16.2x).

Price to Earnings Ratio vs Industry

How does 6988'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
6988 12.2xIndustry Avg. 12.1xNo. of Companies19PE0612182430+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 6988 is expensive based on its Price-To-Earnings Ratio (12.2x) compared to the JP Chemicals industry average (12.1x).

Price to Earnings Ratio vs Fair Ratio

What is 6988'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.

6988 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.2x
Fair PE Ratio14.9x

Price-To-Earnings vs Fair Ratio: 6988 is good value based on its Price-To-Earnings Ratio (12.2x) compared to the estimated Fair Price-To-Earnings Ratio (14.9x).

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 6988 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥2,405.00
JP¥2,772.18
+15.3%
13.0%JP¥3,300.00JP¥2,000.00n/a11
Nov ’25JP¥2,438.00
JP¥2,756.73
+13.1%
12.3%JP¥3,200.00JP¥2,000.00n/a11
Oct ’25JP¥2,489.00
JP¥2,758.55
+10.8%
12.3%JP¥3,200.00JP¥2,000.00n/a11
Sep ’25JP¥2,423.00
JP¥2,776.73
+14.6%
12.4%JP¥3,200.00JP¥2,000.00n/a11
Aug ’25JP¥2,453.00
JP¥2,774.91
+13.1%
12.4%JP¥3,200.00JP¥2,000.00n/a11
Jul ’25JP¥2,526.00
JP¥2,666.83
+5.6%
13.0%JP¥3,200.00JP¥2,000.00n/a12
Jun ’25JP¥2,399.00
JP¥2,625.17
+9.4%
18.7%JP¥3,400.00JP¥1,940.00n/a12
May ’25JP¥2,603.00
JP¥2,639.33
+1.4%
18.7%JP¥3,400.00JP¥1,940.00n/a12
Apr ’25JP¥2,724.00
JP¥2,567.27
-5.8%
19.6%JP¥3,400.00JP¥1,940.00n/a11
Mar ’25JP¥2,800.00
JP¥2,567.27
-8.3%
19.6%JP¥3,400.00JP¥1,940.00n/a11
Feb ’25JP¥2,555.00
JP¥2,336.67
-8.5%
13.0%JP¥2,800.00JP¥1,700.00n/a12
Jan ’25JP¥2,110.00
JP¥2,251.67
+6.7%
14.8%JP¥2,800.00JP¥1,560.00n/a12
Dec ’24JP¥2,117.00
JP¥2,210.00
+4.4%
15.8%JP¥2,800.00JP¥1,560.00n/a12
Nov ’24JP¥1,983.40
JP¥2,161.67
+9.0%
15.9%JP¥2,800.00JP¥1,560.00JP¥2,438.0012
Oct ’24JP¥1,961.60
JP¥2,137.67
+9.0%
17.1%JP¥2,800.00JP¥1,560.00JP¥2,489.0012
Sep ’24JP¥2,017.00
JP¥2,146.00
+6.4%
16.4%JP¥2,800.00JP¥1,660.00JP¥2,423.0012
Aug ’24JP¥2,000.00
JP¥2,142.91
+7.1%
17.9%JP¥2,800.00JP¥1,660.00JP¥2,453.0011
Jul ’24JP¥2,126.00
JP¥2,028.17
-4.6%
20.3%JP¥2,800.00JP¥1,500.00JP¥2,526.0012
Jun ’24JP¥2,008.00
JP¥1,961.50
-2.3%
17.8%JP¥2,800.00JP¥1,500.00JP¥2,399.0012
May ’24JP¥1,778.00
JP¥1,814.83
+2.1%
16.6%JP¥2,600.00JP¥1,500.00JP¥2,603.0012
Apr ’24JP¥1,710.00
JP¥1,798.67
+5.2%
17.4%JP¥2,600.00JP¥1,500.00JP¥2,724.0012
Mar ’24JP¥1,676.00
JP¥1,774.91
+5.9%
14.2%JP¥2,200.00JP¥1,500.00JP¥2,800.0011
Feb ’24JP¥1,660.00
JP¥1,812.18
+9.2%
13.2%JP¥2,200.00JP¥1,500.00JP¥2,555.0011
Jan ’24JP¥1,530.00
JP¥1,857.40
+21.4%
12.0%JP¥2,200.00JP¥1,500.00JP¥2,110.0010
Dec ’23JP¥1,730.00
JP¥1,855.40
+7.2%
10.1%JP¥2,200.00JP¥1,600.00JP¥2,117.0010
Nov ’23JP¥1,568.00
JP¥1,921.17
+22.5%
17.0%JP¥2,800.00JP¥1,600.00JP¥1,983.4012

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

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