Nippon Building Fund Inc.

TSE:8951 Stock Report

Market Cap: JP¥1.1t

Nippon Building Fund Valuation

Is 8951 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • 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 8951 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 8951 (¥126400) is trading below our estimate of fair value (¥127463.58)

Significantly Below Fair Value: 8951 is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 8951?

Key metric: As 8951 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 8951. This is calculated by dividing 8951's market cap by their current earnings.
What is 8951's PE Ratio?
PE Ratio25.1x
EarningsJP¥42.86b
Market CapJP¥1.08t

Price to Earnings Ratio vs Peers

How does 8951's PE Ratio compare to its peers?

The above table shows the PE ratio for 8951 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.6x
8952 Japan Real Estate Investment
21.3x-8.0%JP¥799.6b
8954 ORIX JREIT
20xn/aJP¥460.1b
8955 Japan Prime Realty Investment
22.2x2.5%JP¥330.6b
8976 Daiwa Office Investment
23.2x5.4%JP¥287.3b
8951 Nippon Building Fund
25.1x-5.0%JP¥1.1t

Price-To-Earnings vs Peers: 8951 is expensive based on its Price-To-Earnings Ratio (25.1x) compared to the peer average (21.6x).

Price to Earnings Ratio vs Industry

How does 8951's PE Ratio compare vs other companies in the Asian Office REITs Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
8951 25.1xIndustry Avg. 17.6xNo. of Companies8PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 8951 is expensive based on its Price-To-Earnings Ratio (25.1x) compared to the Asian Office REITs industry average (17.6x).

Price to Earnings Ratio vs Fair Ratio

What is 8951'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.

8951 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.1x
Fair PE Ratio21.6x

Price-To-Earnings vs Fair Ratio: 8951 is expensive based on its Price-To-Earnings Ratio (25.1x) compared to the estimated Fair Price-To-Earnings Ratio (21.6x).

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 8951 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥126,400.00
JP¥125,933.33
-0.4%
7.6%JP¥135,800.00JP¥106,400.00n/a9
Nov ’25JP¥131,100.00
JP¥126,480.00
-3.5%
8.3%JP¥143,600.00JP¥106,400.00n/a10
Oct ’25JP¥131,600.00
JP¥124,980.00
-5.0%
8.1%JP¥143,600.00JP¥106,400.00n/a10
Sep ’25JP¥131,200.00
JP¥124,654.55
-5.0%
7.8%JP¥143,600.00JP¥106,400.00n/a11
Aug ’25JP¥115,200.00
JP¥122,927.27
+6.7%
8.6%JP¥143,600.00JP¥100,400.00n/a11
Jul ’25JP¥112,000.00
JP¥124,763.64
+11.4%
7.3%JP¥143,600.00JP¥111,600.00n/a11
Jun ’25JP¥117,400.00
JP¥125,240.00
+6.7%
7.5%JP¥143,600.00JP¥111,600.00n/a10
May ’25JP¥120,200.00
JP¥119,409.09
-0.7%
17.2%JP¥143,600.00JP¥61,100.00n/a11
Apr ’25JP¥119,800.00
JP¥117,090.00
-2.3%
17.1%JP¥135,800.00JP¥61,100.00n/a10
Mar ’25JP¥116,200.00
JP¥116,144.00
-0.05%
16.6%JP¥134,000.00JP¥61,100.00n/a10
Feb ’25JP¥118,800.00
JP¥116,484.00
-1.9%
16.7%JP¥134,000.00JP¥61,100.00n/a10
Jan ’25JP¥122,200.00
JP¥116,744.00
-4.5%
16.5%JP¥133,000.00JP¥61,100.00n/a10
Dec ’24JP¥121,400.00
JP¥117,385.45
-3.3%
15.8%JP¥133,000.00JP¥61,100.00n/a11
Nov ’24JP¥121,000.00
JP¥116,676.36
-3.6%
15.8%JP¥133,000.00JP¥61,100.00JP¥131,100.0011
Oct ’24JP¥121,200.00
JP¥119,220.00
-1.6%
8.7%JP¥132,000.00JP¥92,200.00JP¥131,600.0011
Sep ’24JP¥124,200.00
JP¥119,220.00
-4.0%
8.7%JP¥132,000.00JP¥92,200.00JP¥131,200.0011
Aug ’24JP¥119,800.00
JP¥116,674.55
-2.6%
9.0%JP¥132,000.00JP¥92,200.00JP¥115,200.0011
Jul ’24JP¥113,200.00
JP¥116,674.55
+3.1%
9.0%JP¥132,000.00JP¥92,200.00JP¥112,000.0011
Jun ’24JP¥109,600.00
JP¥120,256.36
+9.7%
12.1%JP¥145,400.00JP¥92,200.00JP¥117,400.0011
May ’24JP¥113,200.00
JP¥120,256.36
+6.2%
12.1%JP¥145,400.00JP¥92,200.00JP¥120,200.0011
Apr ’24JP¥110,200.00
JP¥129,158.00
+17.2%
7.1%JP¥145,400.00JP¥119,800.00JP¥119,800.0010
Mar ’24JP¥112,400.00
JP¥134,581.67
+19.7%
7.1%JP¥145,400.00JP¥119,800.00JP¥116,200.0012
Feb ’24JP¥114,000.00
JP¥137,948.33
+21.0%
6.2%JP¥145,400.00JP¥119,800.00JP¥118,800.0012
Jan ’24JP¥117,600.00
JP¥139,031.67
+18.2%
6.2%JP¥145,400.00JP¥119,800.00JP¥122,200.0012
Dec ’23JP¥125,600.00
JP¥139,031.67
+10.7%
6.2%JP¥145,400.00JP¥119,800.00JP¥121,400.0012
Nov ’23JP¥133,600.00
JP¥139,031.67
+4.1%
6.2%JP¥145,400.00JP¥119,800.00JP¥121,000.0012

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

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