Sumitomo Pharma Co., Ltd.

TSE:4506 Stock Report

Market Cap: JP¥244.7b

Sumitomo Pharma Valuation

Is 4506 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 4506 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 4506 (¥616) is trading below our estimate of fair value (¥1153.12)

Significantly Below Fair Value: 4506 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 4506?

Key metric: As 4506 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 4506. This is calculated by dividing 4506's market cap by their current revenue.
What is 4506's PS Ratio?
PS Ratio0.7x
SalesJP¥342.67b
Market CapJP¥244.73b

Price to Sales Ratio vs Peers

How does 4506's PS Ratio compare to its peers?

The above table shows the PS ratio for 4506 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.8x
4887 Sawai Group Holdings
1.4x7.0%JP¥242.4b
4516 Nippon Shinyaku
1.8x0.9%JP¥277.0b
4521 Kaken Pharmaceutical
1.9x-8.6%JP¥166.0b
4530 Hisamitsu Pharmaceutical
2.1x3.7%JP¥313.9b
4506 Sumitomo Pharma
0.7x4.1%JP¥244.7b

Price-To-Sales vs Peers: 4506 is good value based on its Price-To-Sales Ratio (0.7x) compared to the peer average (1.8x).

Price to Sales Ratio vs Industry

How does 4506's PS Ratio compare vs other companies in the JP Pharmaceuticals Industry?

3 CompaniesPrice / SalesEstimated GrowthMarket Cap
4541 Nichi-Iko Pharmaceutical
0.1xn/aUS$185.57m
8095 Astena Holdings
0.4xn/aUS$127.92m
4539 Nippon Chemiphar
0.2xn/aUS$35.21m
No more companies available in this PS range
4506 0.7xIndustry Avg. 1.9xNo. of Companies6PS01.63.24.86.48+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 4506 is good value based on its Price-To-Sales Ratio (0.7x) compared to the JP Pharmaceuticals industry average (1.9x).

Price to Sales Ratio vs Fair Ratio

What is 4506's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

4506 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.7x
Fair PS Ratio2.7x

Price-To-Sales vs Fair Ratio: 4506 is good value based on its Price-To-Sales Ratio (0.7x) compared to the estimated Fair Price-To-Sales Ratio (2.7x).

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 4506 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥616.00
JP¥533.75
-13.4%
23.3%JP¥750.00JP¥370.00n/a8
Nov ’25JP¥550.00
JP¥532.50
-3.2%
23.5%JP¥750.00JP¥370.00n/a8
Oct ’25JP¥607.00
JP¥501.25
-17.4%
24.6%JP¥750.00JP¥370.00n/a8
Sep ’25JP¥669.00
JP¥501.25
-25.1%
24.6%JP¥750.00JP¥370.00n/a8
Aug ’25JP¥473.00
JP¥331.25
-30.0%
25.1%JP¥430.00JP¥190.00n/a8
Jul ’25JP¥390.00
JP¥331.25
-15.1%
25.1%JP¥430.00JP¥190.00n/a8
Jun ’25JP¥305.00
JP¥326.25
+7.0%
22.7%JP¥420.00JP¥190.00n/a8
May ’25JP¥400.00
JP¥333.75
-16.6%
18.5%JP¥420.00JP¥250.00n/a8
Apr ’25JP¥406.00
JP¥405.00
-0.2%
47.8%JP¥870.00JP¥250.00n/a8
Mar ’25JP¥362.00
JP¥412.50
+14.0%
46.0%JP¥870.00JP¥250.00n/a8
Feb ’25JP¥354.00
JP¥477.75
+35.0%
36.3%JP¥870.00JP¥250.00n/a8
Jan ’25JP¥466.00
JP¥484.00
+3.9%
34.9%JP¥870.00JP¥260.00n/a8
Dec ’24JP¥475.00
JP¥490.25
+3.2%
33.5%JP¥870.00JP¥260.00n/a8
Nov ’24JP¥433.00
JP¥507.75
+17.3%
28.6%JP¥870.00JP¥390.00JP¥550.008
Oct ’24JP¥535.70
JP¥510.00
-4.8%
30.4%JP¥870.00JP¥390.00JP¥607.007
Sep ’24JP¥512.70
JP¥533.75
+4.1%
29.7%JP¥870.00JP¥390.00JP¥669.008
Aug ’24JP¥528.90
JP¥688.75
+30.2%
23.3%JP¥960.00JP¥520.00JP¥473.008
Jul ’24JP¥639.00
JP¥770.00
+20.5%
23.0%JP¥1,000.00JP¥530.00JP¥390.007
Jun ’24JP¥632.00
JP¥851.43
+34.7%
21.1%JP¥1,100.00JP¥530.00JP¥305.007
May ’24JP¥822.00
JP¥951.43
+15.7%
11.4%JP¥1,100.00JP¥750.00JP¥400.007
Apr ’24JP¥810.00
JP¥920.00
+13.6%
11.6%JP¥1,100.00JP¥750.00JP¥406.007
Mar ’24JP¥835.00
JP¥937.14
+12.2%
10.7%JP¥1,100.00JP¥750.00JP¥362.007
Feb ’24JP¥878.00
JP¥1,017.14
+15.8%
11.0%JP¥1,200.00JP¥870.00JP¥354.007
Jan ’24JP¥999.00
JP¥1,031.43
+3.2%
10.5%JP¥1,200.00JP¥870.00JP¥466.007
Dec ’23JP¥1,064.00
JP¥1,031.43
-3.1%
10.5%JP¥1,200.00JP¥870.00JP¥475.007
Nov ’23JP¥999.00
JP¥1,031.43
+3.2%
10.5%JP¥1,200.00JP¥870.00JP¥433.007

Analyst Forecast: Target price is lower than the current share price.

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