Japan Real Estate Investment Corporation

TSE:8952 Stock Report

Market Cap: JP¥799.6b

Japan Real Estate Investment Valuation

Is 8952 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 8952 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 8952 (¥562000) is trading above our estimate of fair value (¥485922.86)

Significantly Below Fair Value: 8952 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 8952?

Key metric: As 8952 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 8952. This is calculated by dividing 8952's market cap by their current earnings.
What is 8952's PE Ratio?
PE Ratio21.3x
EarningsJP¥37.48b
Market CapJP¥799.65b

Price to Earnings Ratio vs Peers

How does 8952's PE Ratio compare to its peers?

The above table shows the PE ratio for 8952 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.7x
8951 Nippon Building Fund
25.4x-5.0%JP¥1.1t
8954 ORIX JREIT
20xn/aJP¥460.6b
8955 Japan Prime Realty Investment
22.2x2.5%JP¥330.6b
8976 Daiwa Office Investment
23.3x5.4%JP¥289.7b
8952 Japan Real Estate Investment
21.3x-8.0%JP¥799.6b

Price-To-Earnings vs Peers: 8952 is good value based on its Price-To-Earnings Ratio (21.3x) compared to the peer average (22.7x).

Price to Earnings Ratio vs Industry

How does 8952's PE Ratio compare vs other companies in the Asian Office REITs Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
8952 21.3xIndustry Avg. 17.3xNo. of Companies7PE0816243240+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 8952 is expensive based on its Price-To-Earnings Ratio (21.3x) compared to the Asian Office REITs industry average (17.3x).

Price to Earnings Ratio vs Fair Ratio

What is 8952'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.

8952 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.3x
Fair PE Ratio20.6x

Price-To-Earnings vs Fair Ratio: 8952 is expensive based on its Price-To-Earnings Ratio (21.3x) compared to the estimated Fair Price-To-Earnings Ratio (20.6x).

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 8952 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥562,000.00
JP¥585,336.36
+4.2%
6.9%JP¥654,000.00JP¥504,000.00n/a11
Nov ’25JP¥559,000.00
JP¥578,770.00
+3.5%
7.6%JP¥639,000.00JP¥496,000.00n/a10
Oct ’25JP¥576,000.00
JP¥567,522.22
-1.5%
7.3%JP¥630,000.00JP¥496,000.00n/a9
Sep ’25JP¥587,000.00
JP¥565,337.50
-3.7%
7.7%JP¥630,000.00JP¥496,000.00n/a8
Aug ’25JP¥515,000.00
JP¥565,337.50
+9.8%
7.7%JP¥630,000.00JP¥496,000.00n/a8
Jul ’25JP¥505,000.00
JP¥579,125.00
+14.7%
6.7%JP¥630,000.00JP¥496,000.00n/a8
Jun ’25JP¥518,000.00
JP¥580,666.67
+12.1%
6.4%JP¥630,000.00JP¥496,000.00n/a9
May ’25JP¥539,000.00
JP¥575,630.00
+6.8%
6.2%JP¥630,000.00JP¥496,000.00n/a10
Apr ’25JP¥536,000.00
JP¥575,630.00
+7.4%
6.2%JP¥630,000.00JP¥496,000.00n/a10
Mar ’25JP¥540,000.00
JP¥575,630.00
+6.6%
6.2%JP¥630,000.00JP¥496,000.00n/a10
Feb ’25JP¥562,000.00
JP¥575,630.00
+2.4%
6.2%JP¥630,000.00JP¥496,000.00n/a10
Jan ’25JP¥584,000.00
JP¥578,330.00
-1.0%
6.3%JP¥630,000.00JP¥496,000.00n/a10
Dec ’24JP¥562,000.00
JP¥573,663.64
+2.1%
6.4%JP¥630,000.00JP¥496,000.00n/a11
Nov ’24JP¥559,000.00
JP¥565,754.55
+1.2%
6.6%JP¥630,000.00JP¥496,000.00JP¥559,000.0011
Oct ’24JP¥583,000.00
JP¥556,663.64
-4.5%
6.1%JP¥625,000.00JP¥496,000.00JP¥576,000.0011
Sep ’24JP¥608,000.00
JP¥556,663.64
-8.4%
6.1%JP¥625,000.00JP¥496,000.00JP¥587,000.0011
Aug ’24JP¥573,000.00
JP¥559,118.18
-2.4%
6.1%JP¥625,000.00JP¥496,000.00JP¥515,000.0011
Jul ’24JP¥548,000.00
JP¥559,572.73
+2.1%
6.2%JP¥630,000.00JP¥496,000.00JP¥505,000.0011
Jun ’24JP¥524,000.00
JP¥585,918.18
+11.8%
8.2%JP¥652,000.00JP¥504,000.00JP¥518,000.0011
May ’24JP¥541,000.00
JP¥605,190.91
+11.9%
7.4%JP¥652,000.00JP¥525,000.00JP¥539,000.0011
Apr ’24JP¥528,000.00
JP¥630,281.82
+19.4%
5.1%JP¥670,000.00JP¥542,000.00JP¥536,000.0011
Mar ’24JP¥554,000.00
JP¥630,281.82
+13.8%
5.1%JP¥670,000.00JP¥542,000.00JP¥540,000.0011
Feb ’24JP¥562,000.00
JP¥630,281.82
+12.1%
5.1%JP¥670,000.00JP¥542,000.00JP¥562,000.0011
Jan ’24JP¥577,000.00
JP¥642,372.73
+11.3%
6.5%JP¥720,000.00JP¥542,000.00JP¥584,000.0011
Dec ’23JP¥606,000.00
JP¥653,100.00
+7.8%
7.2%JP¥728,000.00JP¥542,000.00JP¥562,000.0011
Nov ’23JP¥631,000.00
JP¥660,554.55
+4.7%
7.0%JP¥728,000.00JP¥542,000.00JP¥559,000.0011

Analyst Forecast: Target price is less than 20% higher than the current share price.

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