Daiwa Office Investment Corporation

TSE:8976 Stock Report

Market Cap: JP¥289.7b

Daiwa Office Investment Valuation

Is 8976 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • 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 8976 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 8976 (¥306000) is trading above our estimate of fair value (¥114340.06)

Significantly Below Fair Value: 8976 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 8976?

Key metric: As 8976 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 8976. This is calculated by dividing 8976's market cap by their current earnings.
What is 8976's PE Ratio?
PE Ratio23.3x
EarningsJP¥12.41b
Market CapJP¥289.67b

Price to Earnings Ratio vs Peers

How does 8976's PE Ratio compare to its peers?

The above table shows the PE ratio for 8976 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.1x
8955 Japan Prime Realty Investment
22.2x2.5%JP¥330.6b
3234 Mori Hills REIT Investment
19x-3.4%JP¥240.5b
8954 ORIX JREIT
20xn/aJP¥460.6b
8987 Japan Excellent
19.3xn/aJP¥159.3b
8976 Daiwa Office Investment
23.3x5.4%JP¥289.7b

Price-To-Earnings vs Peers: 8976 is expensive based on its Price-To-Earnings Ratio (23.3x) compared to the peer average (20.1x).

Price to Earnings Ratio vs Industry

How does 8976's PE Ratio compare vs other companies in the Asian Office REITs Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
8976 23.3xIndustry Avg. 17.3xNo. of Companies7PE0816243240+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 8976 is expensive based on its Price-To-Earnings Ratio (23.3x) compared to the Asian Office REITs industry average (17.3x).

Price to Earnings Ratio vs Fair Ratio

What is 8976'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.

8976 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.3x
Fair PE Ratio22.6x

Price-To-Earnings vs Fair Ratio: 8976 is expensive based on its Price-To-Earnings Ratio (23.3x) compared to the estimated Fair Price-To-Earnings Ratio (22.6x).

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 8976 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥306,000.00
JP¥337,285.71
+10.2%
11.2%JP¥395,000.00JP¥272,000.00n/a7
Nov ’25JP¥306,000.00
JP¥331,571.43
+8.4%
9.4%JP¥355,000.00JP¥272,000.00n/a7
Oct ’25JP¥309,500.00
JP¥327,571.43
+5.8%
9.2%JP¥355,000.00JP¥272,000.00n/a7
Sep ’25JP¥307,000.00
JP¥327,571.43
+6.7%
9.2%JP¥355,000.00JP¥272,000.00n/a7
Aug ’25JP¥294,200.00
JP¥328,428.57
+11.6%
9.5%JP¥361,000.00JP¥272,000.00n/a7
Jul ’25JP¥282,400.00
JP¥327,857.14
+16.1%
10.3%JP¥361,000.00JP¥260,000.00n/a7
Jun ’25JP¥278,200.00
JP¥332,785.71
+19.6%
9.3%JP¥361,000.00JP¥260,000.00n/a7
May ’25JP¥290,000.00
JP¥332,714.29
+14.7%
9.3%JP¥360,500.00JP¥260,000.00n/a7
Apr ’25JP¥293,500.00
JP¥334,857.14
+14.1%
9.6%JP¥360,500.00JP¥260,000.00n/a7
Mar ’25JP¥291,000.00
JP¥326,400.00
+12.2%
10.5%JP¥355,000.00JP¥260,000.00n/a5
Feb ’25JP¥309,500.00
JP¥326,400.00
+5.5%
10.5%JP¥355,000.00JP¥260,000.00n/a5
Jan ’25JP¥332,500.00
JP¥330,600.00
-0.6%
9.1%JP¥355,000.00JP¥273,500.00n/a5
Dec ’24JP¥331,000.00
JP¥339,416.67
+2.5%
9.2%JP¥370,500.00JP¥273,500.00n/a6
Nov ’24JP¥333,500.00
JP¥336,333.33
+0.8%
9.0%JP¥370,500.00JP¥273,500.00JP¥306,000.006
Oct ’24JP¥334,000.00
JP¥335,500.00
+0.4%
8.9%JP¥370,500.00JP¥273,500.00JP¥309,500.006
Sep ’24JP¥345,500.00
JP¥335,500.00
-2.9%
8.9%JP¥370,500.00JP¥273,500.00JP¥307,000.006
Aug ’24JP¥316,500.00
JP¥326,916.67
+3.3%
7.9%JP¥350,000.00JP¥273,500.00JP¥294,200.006
Jul ’24JP¥313,000.00
JP¥323,333.33
+3.3%
10.3%JP¥350,000.00JP¥252,000.00JP¥282,400.006
Jun ’24JP¥284,000.00
JP¥314,666.67
+10.8%
10.8%JP¥350,000.00JP¥252,000.00JP¥278,200.006
May ’24JP¥296,000.00
JP¥314,666.67
+6.3%
10.8%JP¥350,000.00JP¥252,000.00JP¥290,000.006
Apr ’24JP¥303,000.00
JP¥326,000.00
+7.6%
8.8%JP¥375,000.00JP¥290,500.00JP¥293,500.006
Mar ’24JP¥304,000.00
JP¥327,400.00
+7.7%
9.6%JP¥375,000.00JP¥290,500.00JP¥291,000.005
Feb ’24JP¥304,500.00
JP¥339,333.33
+11.4%
10.4%JP¥375,000.00JP¥290,500.00JP¥309,500.006
Jan ’24JP¥320,000.00
JP¥347,333.33
+8.5%
12.6%JP¥407,500.00JP¥288,000.00JP¥332,500.006
Dec ’23JP¥333,500.00
JP¥347,333.33
+4.1%
12.6%JP¥407,500.00JP¥288,000.00JP¥331,000.006
Nov ’23JP¥354,000.00
JP¥347,333.33
-1.9%
12.6%JP¥407,500.00JP¥288,000.00JP¥333,500.006

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

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