Japan Tissue Engineering Valuation

Is 7774 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

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 7774 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 7774 (¥497) is trading below our estimate of fair value (¥1352.52)

Significantly Below Fair Value: 7774 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 7774?

Key metric: As 7774 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 7774. This is calculated by dividing 7774's market cap by their current revenue.
What is 7774's PS Ratio?
PS Ratio	8.3x
Sales	JP¥2.43b
Market Cap	JP¥20.18b

7774 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	6.6x
Enterprise Value/EBITDA	171.8x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 7774's PS Ratio compare to its peers?

The above table shows the PS ratio for 7774 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	6.2x
2929 Pharma Foods International	0.4x	n/a	JP¥27.3b
4978 ReproCELL	4.2x	n/a	JP¥11.0b
177A Kohjin Bio	1.9x	3.7%	JP¥8.8b
4564 OncoTherapy Science	18.1x	n/a	JP¥8.7b
7774 Japan Tissue Engineering	8.3x	23.2%	JP¥20.2b

Price-To-Sales vs Peers: 7774 is expensive based on its Price-To-Sales Ratio (8.3x) compared to the peer average (6.2x).

Price to Sales Ratio vs Industry

How does 7774's PS Ratio compare vs other companies in the JP Biotechs Industry?

6 Companies	Price / Sales	Estimated Growth	Market Cap
4974 Takara Bio	2.9x	5.3%	US$827.70m
2929 Pharma Foods International	0.4x	n/a	US$177.44m
7777 3-D Matrix	2.2x	n/a	US$75.05m
4978 ReproCELL	4.2x	n/a	US$71.69m

6 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 7774 is good value based on its Price-To-Sales Ratio (8.3x) compared to the JP Biotechs industry average (18.7x).

Price to Sales Ratio vs Fair Ratio

What is 7774'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.

7774 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	8.3x
Fair PS Ratio	3x

Price-To-Sales vs Fair Ratio: 7774 is expensive based on its Price-To-Sales Ratio (8.3x) compared to the estimated Fair Price-To-Sales Ratio (3x).

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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