Nitto Denko Corporation

TSE:6988 Stock Report

Market Cap: JP¥1.8t

Nitto Denko Valuation

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

Below Fair Value: 6988 (¥13015) is trading above our estimate of fair value (¥11934.82)

Significantly Below Fair Value: 6988 is trading above our estimate of fair value.

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

6988 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/Revenue1.6x
Enterprise Value/EBITDA7.5x
PEG Ratio1.9x

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 Average21.6x
4612 Nippon Paint Holdings
20.7x8.0%JP¥2.5t
4186 Tokyo Ohka Kogyo
39.9x17.4%JP¥507.1b
4203 Sumitomo Bakelite
18.9x8.4%JP¥418.5b
4613 Kansai Paint
7x-21.7%JP¥433.7b
6988 Nitto Denko
17.9x9.4%JP¥1.8t

Price-To-Earnings vs Peers: 6988 is good value based on its Price-To-Earnings Ratio (17.9x) compared to the peer average (21.6x).

Price to Earnings Ratio vs Industry

How does 6988's PE Ratio compare vs other companies in the JP Chemicals Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.7%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.7%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: 6988 is expensive based on its Price-To-Earnings Ratio (17.9x) compared to the JP Chemicals industry average (13.8x).

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 Ratio17.9x
Fair PE Ratio18.3x

Price-To-Earnings vs Fair Ratio: 6988 is good value based on its Price-To-Earnings Ratio (17.9x) compared to the estimated Fair Price-To-Earnings Ratio (18.3x).

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¥13,015.00
JP¥13,196.67
+1.4%
18.7%JP¥17,000.00JP¥9,700.00n/a12
Apr ’25JP¥13,620.00
JP¥12,836.36
-5.8%
19.6%JP¥17,000.00JP¥9,700.00n/a11
Mar ’25JP¥14,000.00
JP¥12,836.36
-8.3%
19.6%JP¥17,000.00JP¥9,700.00n/a11
Feb ’25JP¥12,775.00
JP¥11,683.33
-8.5%
13.0%JP¥14,000.00JP¥8,500.00n/a12
Jan ’25JP¥10,550.00
JP¥11,258.33
+6.7%
14.8%JP¥14,000.00JP¥7,800.00n/a12
Dec ’24JP¥10,585.00
JP¥11,050.00
+4.4%
15.8%JP¥14,000.00JP¥7,800.00n/a12
Nov ’24JP¥9,917.00
JP¥10,808.33
+9.0%
15.9%JP¥14,000.00JP¥7,800.00n/a12
Oct ’24JP¥9,808.00
JP¥10,688.33
+9.0%
17.1%JP¥14,000.00JP¥7,800.00n/a12
Sep ’24JP¥10,085.00
JP¥10,730.00
+6.4%
16.4%JP¥14,000.00JP¥8,300.00n/a12
Aug ’24JP¥10,000.00
JP¥10,714.55
+7.1%
17.9%JP¥14,000.00JP¥8,300.00n/a11
Jul ’24JP¥10,630.00
JP¥10,140.83
-4.6%
20.3%JP¥14,000.00JP¥7,500.00n/a12
Jun ’24JP¥10,040.00
JP¥9,807.50
-2.3%
17.8%JP¥14,000.00JP¥7,500.00n/a12
May ’24JP¥8,890.00
JP¥9,074.17
+2.1%
16.6%JP¥13,000.00JP¥7,500.00JP¥13,015.0012
Apr ’24JP¥8,550.00
JP¥8,993.33
+5.2%
17.4%JP¥13,000.00JP¥7,500.00JP¥13,620.0012
Mar ’24JP¥8,380.00
JP¥8,874.55
+5.9%
14.2%JP¥11,000.00JP¥7,500.00JP¥14,000.0011
Feb ’24JP¥8,300.00
JP¥9,060.91
+9.2%
13.2%JP¥11,000.00JP¥7,500.00JP¥12,775.0011
Jan ’24JP¥7,650.00
JP¥9,287.00
+21.4%
12.0%JP¥11,000.00JP¥7,500.00JP¥10,550.0010
Dec ’23JP¥8,650.00
JP¥9,277.00
+7.2%
10.1%JP¥11,000.00JP¥8,000.00JP¥10,585.0010
Nov ’23JP¥7,840.00
JP¥9,605.83
+22.5%
17.0%JP¥14,000.00JP¥8,000.00JP¥9,917.0012
Oct ’23JP¥7,830.00
JP¥9,853.33
+25.8%
16.4%JP¥14,000.00JP¥8,000.00JP¥9,808.0012
Sep ’23JP¥8,550.00
JP¥9,849.23
+15.2%
15.7%JP¥14,000.00JP¥8,000.00JP¥10,085.0013
Aug ’23JP¥8,620.00
JP¥9,903.08
+14.9%
15.2%JP¥14,000.00JP¥7,800.00JP¥10,000.0013
Jul ’23JP¥8,590.00
JP¥10,071.43
+17.2%
13.6%JP¥14,000.00JP¥8,600.00JP¥10,630.0014
Jun ’23JP¥9,450.00
JP¥10,007.14
+5.9%
14.1%JP¥14,000.00JP¥8,400.00JP¥10,040.0014
May ’23JP¥8,750.00
JP¥10,021.43
+14.5%
13.8%JP¥14,000.00JP¥8,400.00JP¥8,890.0014

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

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