Daiichi Sankyo Company, Limited

TSE:4568 Stock Report

Market Cap: JP¥8.5t

Daiichi Sankyo Company Valuation

Is 4568 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • 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 4568 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 4568 (¥4483) is trading below our estimate of fair value (¥7250.24)

Significantly Below Fair Value: 4568 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 4568?

Key metric: As 4568 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 4568. This is calculated by dividing 4568's market cap by their current earnings.
What is 4568's PE Ratio?
PE Ratio33.8x
EarningsJP¥250.40b
Market CapJP¥8.48t

Price to Earnings Ratio vs Peers

How does 4568's PE Ratio compare to its peers?

The above table shows the PE ratio for 4568 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average33.2x
4502 Takeda Pharmaceutical
22.5x11.9%JP¥6.5t
4578 Otsuka Holdings
31.8x11.6%JP¥4.8t
4519 Chugai Pharmaceutical
27.1x6.2%JP¥10.5t
4503 Astellas Pharma
51.4x25.5%JP¥2.8t
4568 Daiichi Sankyo Company
33.8x19.5%JP¥8.5t

Price-To-Earnings vs Peers: 4568 is expensive based on its Price-To-Earnings Ratio (33.8x) compared to the peer average (33.2x).

Price to Earnings Ratio vs Industry

How does 4568'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
4568 33.8xIndustry Avg. 15.1xNo. of Companies5PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 4568 is expensive based on its Price-To-Earnings Ratio (33.8x) compared to the JP Pharmaceuticals industry average (15.1x).

Price to Earnings Ratio vs Fair Ratio

What is 4568'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.

4568 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio33.8x
Fair PE Ratio36x

Price-To-Earnings vs Fair Ratio: 4568 is good value based on its Price-To-Earnings Ratio (33.8x) compared to the estimated Fair Price-To-Earnings Ratio (36x).

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 4568 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥4,483.00
JP¥6,355.56
+41.8%
8.7%JP¥7,600.00JP¥5,500.00n/a18
Nov ’25JP¥4,869.00
JP¥6,497.22
+33.4%
7.1%JP¥7,600.00JP¥5,500.00n/a18
Oct ’25JP¥4,715.00
JP¥6,541.18
+38.7%
7.4%JP¥7,600.00JP¥5,500.00n/a17
Sep ’25JP¥6,108.00
JP¥6,648.34
+8.8%
10.0%JP¥8,573.50JP¥5,500.00n/a16
Aug ’25JP¥5,800.00
JP¥6,545.22
+12.8%
9.9%JP¥8,573.50JP¥5,500.00n/a16
Jul ’25JP¥5,427.00
JP¥6,176.67
+13.8%
8.0%JP¥6,800.00JP¥4,900.00n/a15
Jun ’25JP¥5,578.00
JP¥5,976.67
+7.1%
12.1%JP¥6,800.00JP¥4,200.00n/a15
May ’25JP¥5,335.00
JP¥5,673.33
+6.3%
9.4%JP¥6,300.00JP¥4,200.00n/a15
Apr ’25JP¥4,667.00
JP¥5,620.00
+20.4%
9.9%JP¥6,300.00JP¥4,200.00n/a15
Mar ’25JP¥4,997.00
JP¥5,620.00
+12.5%
9.9%JP¥6,300.00JP¥4,200.00n/a15
Feb ’25JP¥4,650.00
JP¥5,380.00
+15.7%
10.0%JP¥6,200.00JP¥4,200.00n/a15
Jan ’25JP¥3,872.00
JP¥5,330.00
+37.7%
10.4%JP¥6,200.00JP¥4,200.00n/a15
Dec ’24JP¥4,111.00
JP¥5,296.67
+28.8%
11.4%JP¥6,200.00JP¥4,200.00n/a15
Nov ’24JP¥4,068.00
JP¥5,173.33
+27.2%
14.9%JP¥6,500.00JP¥3,500.00JP¥4,869.0015
Oct ’24JP¥4,106.00
JP¥5,239.29
+27.6%
15.2%JP¥6,500.00JP¥3,500.00JP¥4,715.0014
Sep ’24JP¥4,287.00
JP¥5,396.88
+25.9%
14.1%JP¥6,700.00JP¥3,500.00JP¥6,108.0016
Aug ’24JP¥4,437.00
JP¥5,371.88
+21.1%
13.7%JP¥6,700.00JP¥3,500.00JP¥5,800.0016
Jul ’24JP¥4,550.00
JP¥5,509.38
+21.1%
11.3%JP¥6,700.00JP¥4,000.00JP¥5,427.0016
Jun ’24JP¥4,638.00
JP¥5,485.29
+18.3%
12.1%JP¥6,700.00JP¥4,000.00JP¥5,578.0017
May ’24JP¥4,605.00
JP¥5,643.75
+22.6%
11.7%JP¥7,000.00JP¥4,600.00JP¥5,335.0016
Apr ’24JP¥4,822.00
JP¥5,546.67
+15.0%
14.0%JP¥7,000.00JP¥4,200.00JP¥4,667.0015
Mar ’24JP¥4,220.00
JP¥5,573.33
+32.1%
14.8%JP¥7,000.00JP¥4,200.00JP¥4,997.0015
Feb ’24JP¥4,094.00
JP¥5,566.67
+36.0%
14.8%JP¥7,000.00JP¥4,200.00JP¥4,650.0015
Jan ’24JP¥4,250.00
JP¥5,557.14
+30.8%
16.3%JP¥7,000.00JP¥4,000.00JP¥3,872.0014
Dec ’23JP¥4,597.00
JP¥5,326.67
+15.9%
16.7%JP¥7,000.00JP¥4,000.00JP¥4,111.0015
Nov ’23JP¥4,830.00
JP¥5,257.14
+8.8%
16.7%JP¥6,900.00JP¥4,000.00JP¥4,068.0014

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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