United Arrows Ltd.

TSE:7606 Stock Report

Market Cap: JP¥65.0b

United Arrows Valuation

Is 7606 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 7606 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 7606 (¥2356) is trading below our estimate of fair value (¥2569.37)

Significantly Below Fair Value: 7606 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 7606?

Key metric: As 7606 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 7606. This is calculated by dividing 7606's market cap by their current earnings.
What is 7606's PE Ratio?
PE Ratio12.2x
EarningsJP¥5.35b
Market CapJP¥65.05b

Price to Earnings Ratio vs Peers

How does 7606's PE Ratio compare to its peers?

The above table shows the PE ratio for 7606 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average12.7x
3612 World
10.9x23.6%JP¥66.3b
8185 Chiyoda
19.2x4.1%JP¥50.1b
8219 Aoyama Trading
11.5x-2.2%JP¥103.8b
2792 Honeys Holdings
9.2xn/aJP¥45.3b
7606 United Arrows
12.2x6.9%JP¥65.0b

Price-To-Earnings vs Peers: 7606 is good value based on its Price-To-Earnings Ratio (12.2x) compared to the peer average (12.7x).

Price to Earnings Ratio vs Industry

How does 7606's PE Ratio compare vs other companies in the JP Specialty Retail Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
7606 12.2xIndustry Avg. 13.4xNo. of Companies17PE0816243240+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 7606 is good value based on its Price-To-Earnings Ratio (12.2x) compared to the JP Specialty Retail industry average (13.4x).

Price to Earnings Ratio vs Fair Ratio

What is 7606'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.

7606 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.2x
Fair PE Ratio13.3x

Price-To-Earnings vs Fair Ratio: 7606 is good value based on its Price-To-Earnings Ratio (12.2x) compared to the estimated Fair Price-To-Earnings Ratio (13.3x).

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 7606 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥2,356.00
JP¥2,695.00
+14.4%
9.2%JP¥3,100.00JP¥2,480.00n/a4
Nov ’25JP¥2,107.00
JP¥2,590.00
+22.9%
2.8%JP¥2,700.00JP¥2,500.00n/a4
Oct ’25JP¥2,128.00
JP¥2,370.00
+11.4%
8.4%JP¥2,600.00JP¥2,080.00n/a4
Sep ’25JP¥2,182.00
JP¥2,236.00
+2.5%
14.4%JP¥2,600.00JP¥1,700.00n/a5
Aug ’25JP¥2,029.00
JP¥2,224.00
+9.6%
13.4%JP¥2,500.00JP¥1,700.00n/a5
Jul ’25JP¥2,056.00
JP¥2,128.00
+3.5%
15.0%JP¥2,500.00JP¥1,700.00n/a5
Jun ’25JP¥1,795.00
JP¥2,128.00
+18.6%
15.0%JP¥2,500.00JP¥1,700.00n/a5
May ’25JP¥1,803.00
JP¥2,162.00
+19.9%
15.9%JP¥2,650.00JP¥1,800.00n/a5
Apr ’25JP¥1,971.00
JP¥2,212.00
+12.2%
14.8%JP¥2,650.00JP¥1,800.00n/a5
Mar ’25JP¥1,752.00
JP¥2,212.00
+26.3%
14.8%JP¥2,650.00JP¥1,800.00n/a5
Feb ’25JP¥1,934.00
JP¥2,250.00
+16.3%
16.1%JP¥2,800.00JP¥1,800.00n/a5
Jan ’25JP¥1,888.00
JP¥2,310.00
+22.4%
18.2%JP¥2,800.00JP¥1,800.00n/a5
Dec ’24JP¥1,967.00
JP¥2,310.00
+17.4%
18.2%JP¥2,800.00JP¥1,800.00n/a5
Nov ’24JP¥1,923.00
JP¥2,360.00
+22.7%
18.7%JP¥2,950.00JP¥1,800.00JP¥2,107.005
Oct ’24JP¥1,959.00
JP¥2,537.50
+29.5%
18.1%JP¥2,950.00JP¥1,800.00JP¥2,128.004
Sep ’24JP¥2,202.00
JP¥2,540.00
+15.3%
13.9%JP¥2,950.00JP¥1,890.00JP¥2,182.006
Aug ’24JP¥2,400.00
JP¥2,431.67
+1.3%
13.0%JP¥2,900.00JP¥1,890.00JP¥2,029.006
Jul ’24JP¥2,485.00
JP¥2,331.67
-6.2%
10.2%JP¥2,600.00JP¥1,890.00JP¥2,056.006
Jun ’24JP¥2,336.00
JP¥2,298.33
-1.6%
9.2%JP¥2,500.00JP¥1,890.00JP¥1,795.006
May ’24JP¥1,989.00
JP¥2,133.33
+7.3%
9.2%JP¥2,400.00JP¥1,800.00JP¥1,803.006
Apr ’24JP¥1,919.00
JP¥2,138.33
+11.4%
8.8%JP¥2,400.00JP¥1,830.00JP¥1,971.006
Mar ’24JP¥1,749.00
JP¥2,138.33
+22.3%
8.8%JP¥2,400.00JP¥1,830.00JP¥1,752.006
Feb ’24JP¥1,746.00
JP¥2,188.33
+25.3%
8.5%JP¥2,400.00JP¥1,830.00JP¥1,934.006
Jan ’24JP¥1,852.00
JP¥2,205.00
+19.1%
8.2%JP¥2,400.00JP¥1,830.00JP¥1,888.006
Dec ’23JP¥1,876.00
JP¥2,205.00
+17.5%
8.2%JP¥2,400.00JP¥1,830.00JP¥1,967.006
Nov ’23JP¥2,038.00
JP¥2,241.67
+10.0%
11.5%JP¥2,600.00JP¥1,750.00JP¥1,923.006

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

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