Araya Industrial Valuation

Q: What is the Fair Price of 7305 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

7305 (¥4045) is trading below our estimate of [[fair value]] (¥4401.02)

Is 7305 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 7305 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 7305 (¥4045) is trading below our estimate of fair value (¥4401.02)

Significantly Below Fair Value: 7305 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 7305?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 7305. This is calculated by dividing 7305's market cap by their current preferred multiple.
What is 7305's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	JP¥22.51b

7305 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	0.5x
Enterprise Value/EBITDA	6x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 7305's PE Ratio compare to its peers?

The above table shows the PE ratio for 7305 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	21.8x
5981 Tokyo Rope Mfg	5.7x	-0.1%	JP¥22.3b
5632 Mitsubishi Steel Mfg	53.9x	n/a	JP¥21.1b
5658 Nichia Steel Works	13.8x	n/a	JP¥15.3b
5484 Tohoku Steel	13.5x	n/a	JP¥14.1b
7305 Araya Industrial	10.8x	n/a	JP¥22.5b

Price-To-Earnings vs Peers: 7305 is good value based on its Price-To-Earnings Ratio (10.8x) compared to the peer average (21.8x).

Price to Earnings Ratio vs Industry

How does 7305's PE Ratio compare vs other companies in the JP Metals and Mining Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	7.5%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	7.5%
	n/a	n/a	n/a

No more companies

Price-To-Earnings vs Industry: 7305 is expensive based on its Price-To-Earnings Ratio (10.8x) compared to the JP Metals and Mining industry average (9.1x).

Price to Earnings Ratio vs Fair Ratio

What is 7305'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.

7305 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	10.8x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 7305's Price-To-Earnings 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.