Shin-Etsu PolymerLtd Valuation
Is 7970 undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
3/6Valuation 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 7970 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: 7970 (¥1617) is trading below our estimate of fair value (¥4237.49)
Significantly Below Fair Value: 7970 is trading below fair value by more than 20%.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for 7970?
Key metric: As 7970 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.
| What is 7970's PE Ratio? | |
|---|---|
| PE Ratio | 15.1x |
| Earnings | JP¥8.65b |
| Market Cap | JP¥130.68b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 0.8x |
| Enterprise Value/EBITDA | 5.1x |
| PEG Ratio | 1.1x |
Price to Earnings Ratio vs Peers
How does 7970's PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 17.8x | ||
4023 Kureha | 17.2x | 17.8% | JP¥147.6b |
5122 Okamoto Industries | 16.2x | n/a | JP¥93.9b |
4107 ISE Chemicals | 25.9x | -0.6% | JP¥127.2b |
4956 Konishi | 12x | 5.2% | JP¥87.3b |
7970 Shin-Etsu PolymerLtd | 15.1x | 13.9% | JP¥130.7b |
Price-To-Earnings vs Peers: 7970 is good value based on its Price-To-Earnings Ratio (15.1x) compared to the peer average (17.8x).
Price to Earnings Ratio vs Industry
How does 7970's PE Ratio compare vs other companies in the JP Chemicals Industry?
| 1 Company | Price / Earnings | Estimated Growth | Market Cap |
|---|---|---|---|
4119 Nippon Pigment Holdings | 0.6x | n/a | US$31.43m |
| 1 Company | Estimated Growth | Market Cap |
|---|
Price-To-Earnings vs Industry: 7970 is expensive based on its Price-To-Earnings Ratio (15.1x) compared to the JP Chemicals industry average (12.1x).
Price to Earnings Ratio vs Fair Ratio
What is 7970'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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 15.1x |
| Fair PE Ratio | 13.5x |
Price-To-Earnings vs Fair Ratio: 7970 is expensive based on its Price-To-Earnings Ratio (15.1x) compared to the estimated Fair Price-To-Earnings Ratio (13.5x).
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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