Towa Pharmaceutical Co., Ltd.

TSE:4553 Stock Report

Market Cap: JP¥138.7b

Towa Pharmaceutical Valuation

Is 4553 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • 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 4553 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 4553 (¥2818) is trading below our estimate of fair value (¥5656.64)

Significantly Below Fair Value: 4553 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 4553?

Key metric: As 4553 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 4553. This is calculated by dividing 4553's market cap by their current earnings.
What is 4553's PE Ratio?
PE Ratio8.8x
EarningsJP¥15.78b
Market CapJP¥138.72b

Price to Earnings Ratio vs Peers

How does 4553's PE Ratio compare to its peers?

The above table shows the PE ratio for 4553 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15.1x
4551 Torii Pharmaceutical
25.1x-1.0%JP¥132.6b
4547 Kissei Pharmaceutical
14.5x-5.3%JP¥155.2b
4559 Zeria Pharmaceutical
11.6x11.1%JP¥97.7b
4521 Kaken Pharmaceutical
9.3x-56.2%JP¥170.5b
4553 Towa Pharmaceutical
8.8x2.3%JP¥138.7b

Price-To-Earnings vs Peers: 4553 is good value based on its Price-To-Earnings Ratio (8.8x) compared to the peer average (15.1x).

Price to Earnings Ratio vs Industry

How does 4553's PE Ratio compare vs other companies in the JP Pharmaceuticals Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
4553 8.8xIndustry Avg. 15.1xNo. of Companies6PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 4553 is good value based on its Price-To-Earnings Ratio (8.8x) compared to the JP Pharmaceuticals industry average (15.1x).

Price to Earnings Ratio vs Fair Ratio

What is 4553'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.

4553 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.8x
Fair PE Ratio16.9x

Price-To-Earnings vs Fair Ratio: 4553 is good value based on its Price-To-Earnings Ratio (8.8x) compared to the estimated Fair Price-To-Earnings Ratio (16.9x).

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 4553 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥2,818.00
JP¥3,645.00
+29.3%
7.3%JP¥3,880.00JP¥3,200.00n/a4
Nov ’25JP¥3,085.00
JP¥3,595.00
+16.5%
9.7%JP¥3,880.00JP¥3,000.00n/a4
Oct ’25JP¥3,070.00
JP¥3,595.00
+17.1%
9.7%JP¥3,880.00JP¥3,000.00n/a4
Sep ’25JP¥2,925.00
JP¥3,592.50
+22.8%
9.7%JP¥3,870.00JP¥3,000.00n/a4
Aug ’25JP¥2,880.00
JP¥3,530.00
+22.6%
9.8%JP¥3,870.00JP¥3,000.00n/a4
Jul ’25JP¥2,955.00
JP¥3,530.00
+19.5%
9.8%JP¥3,870.00JP¥3,000.00n/a4
Jun ’25JP¥2,890.00
JP¥3,455.00
+19.6%
8.9%JP¥3,870.00JP¥3,000.00n/a4
May ’25JP¥2,800.00
JP¥3,690.00
+31.8%
19.8%JP¥5,000.00JP¥2,880.00n/a5
Apr ’25JP¥2,830.00
JP¥3,690.00
+30.4%
19.8%JP¥5,000.00JP¥2,880.00n/a5
Mar ’25JP¥2,751.00
JP¥3,430.00
+24.7%
23.5%JP¥5,000.00JP¥2,800.00n/a5
Feb ’25JP¥2,620.00
JP¥3,150.00
+20.2%
15.5%JP¥4,000.00JP¥2,580.00n/a5
Jan ’25JP¥2,352.00
JP¥3,150.00
+33.9%
15.5%JP¥4,000.00JP¥2,580.00n/a5
Dec ’24JP¥2,464.00
JP¥3,150.00
+27.8%
15.5%JP¥4,000.00JP¥2,580.00n/a5
Nov ’24JP¥2,782.00
JP¥3,150.00
+13.2%
15.5%JP¥4,000.00JP¥2,580.00JP¥3,085.005
Oct ’24JP¥2,841.00
JP¥2,614.00
-8.0%
24.4%JP¥3,270.00JP¥1,700.00JP¥3,070.005
Sep ’24JP¥2,797.00
JP¥2,445.00
-12.6%
28.4%JP¥3,270.00JP¥1,600.00JP¥2,925.006
Aug ’24JP¥1,848.00
JP¥1,928.33
+4.3%
18.3%JP¥2,600.00JP¥1,500.00JP¥2,880.006
Jul ’24JP¥1,771.00
JP¥1,995.00
+12.6%
16.1%JP¥2,600.00JP¥1,500.00JP¥2,955.006
Jun ’24JP¥1,724.00
JP¥2,061.67
+19.6%
22.0%JP¥3,000.00JP¥1,500.00JP¥2,890.006
May ’24JP¥1,968.00
JP¥2,095.00
+6.5%
20.7%JP¥3,000.00JP¥1,600.00JP¥2,800.006
Apr ’24JP¥1,895.00
JP¥2,095.00
+10.6%
20.7%JP¥3,000.00JP¥1,600.00JP¥2,830.006
Mar ’24JP¥1,893.00
JP¥2,120.00
+12.0%
22.2%JP¥3,000.00JP¥1,600.00JP¥2,751.005
Feb ’24JP¥2,031.00
JP¥2,736.67
+34.7%
23.1%JP¥3,570.00JP¥2,000.00JP¥2,620.006
Jan ’24JP¥2,131.00
JP¥2,736.67
+28.4%
23.1%JP¥3,570.00JP¥2,000.00JP¥2,352.006
Dec ’23JP¥2,101.00
JP¥2,736.67
+30.3%
23.1%JP¥3,570.00JP¥2,000.00JP¥2,464.006
Nov ’23JP¥2,206.00
JP¥2,995.00
+35.8%
27.6%JP¥4,500.00JP¥2,000.00JP¥2,782.006

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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