Wavelock Holdings Valuation

Q: What is the Fair Price of 7940 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

7940 (¥634) is trading below our estimate of [[fair value]] (¥5707.49)

Is 7940 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 7940 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 7940 (¥634) is trading below our estimate of fair value (¥5707.49)

Significantly Below Fair Value: 7940 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 7940?

Key metric: As 7940 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 7940. This is calculated by dividing 7940's market cap by their current earnings.
What is 7940's PE Ratio?
PE Ratio	12.4x
Earnings	JP¥432.00m
Market Cap	JP¥5.35b

7940 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	0.3x
Enterprise Value/EBITDA	7.1x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 7940's PE Ratio compare to its peers?

The above table shows the PE ratio for 7940 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	8.2x
4624 Isamu Paint	12.2x	n/a	JP¥5.5b
4119 Nippon Pigment Holdings	0.7x	n/a	JP¥4.8b
3878 Tomoegawa	8.2x	n/a	JP¥7.5b
4625 AtomixLtd	11.6x	n/a	JP¥3.2b
7940 Wavelock Holdings	12.4x	n/a	JP¥5.3b

Price-To-Earnings vs Peers: 7940 is expensive based on its Price-To-Earnings Ratio (12.4x) compared to the peer average (8.2x).

Price to Earnings Ratio vs Industry

How does 7940's PE Ratio compare vs other companies in the JP Chemicals Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap
4119 Nippon Pigment Holdings	0.7x	n/a	US$31.08m

No more companies available in this PE range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 7940 is expensive based on its Price-To-Earnings Ratio (12.4x) compared to the JP Chemicals industry average (12.1x).

Price to Earnings Ratio vs Fair Ratio

What is 7940'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.

7940 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12.4x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 7940'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.

Discover undervalued companies

Kaneka

JP¥215.7b

Engages in the manufacture and sale of polyvinyl chloride (PVC), crosslinked PVC, PVC-PVAc polymers, paste PVC, acryl grafted-vinyl chloride copolymer, and chlorinated PVC in Japan and internationally.

4118

JP¥3,428.00

0.5%

-8.4%

Tokuyama

JP¥190.5b

Produces and sells various chemical products in Japan.

4043

JP¥2,648.00

0.9%

11.6%

Daicel

JP¥366.8b

Engages in the materials, medical/healthcare, smart, safety, engineering plastics, and other businesses in Japan, China, and internationally.

4202

JP¥1,352.00

1.1%

-4.7%