Kokusai Electric Corporation

TSE:6525 Stock Report

Market Cap: JP¥556.9b

Kokusai Electric Valuation

Is 6525 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-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 6525 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6525 (¥2408) is trading below our estimate of fair value (¥5147.36)

Significantly Below Fair Value: 6525 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6525?

Key metric: As 6525 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 6525. This is calculated by dividing 6525's market cap by their current earnings.
What is 6525's PE Ratio?
PE Ratio17.6x
EarningsJP¥31.61b
Market CapJP¥556.89b

Price to Earnings Ratio vs Peers

How does 6525's PE Ratio compare to its peers?

The above table shows the PE ratio for 6525 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14.1x
3436 Sumco
20.9x29.9%JP¥444.1b
7735 SCREEN Holdings
9.8x7.0%JP¥816.1b
6323 Rorze
12.7x5.6%JP¥324.7b
7729 Tokyo Seimitsu
12.8x9.4%JP¥311.3b
6525 Kokusai Electric
17.6x17.9%JP¥556.9b

Price-To-Earnings vs Peers: 6525 is expensive based on its Price-To-Earnings Ratio (17.6x) compared to the peer average (14.1x).


Price to Earnings Ratio vs Industry

How does 6525's PE Ratio compare vs other companies in the JP Semiconductor Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
3856 Abalance
1.5xn/aUS$95.14m
No more companies available in this PE range
6525 17.6xIndustry Avg. 13.9xNo. of Companies7PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 6525 is expensive based on its Price-To-Earnings Ratio (17.6x) compared to the JP Semiconductor industry average (13.9x).


Price to Earnings Ratio vs Fair Ratio

What is 6525'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.

6525 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.6x
Fair PE Ratio23.7x

Price-To-Earnings vs Fair Ratio: 6525 is good value based on its Price-To-Earnings Ratio (17.6x) compared to the estimated Fair Price-To-Earnings Ratio (23.7x).


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 6525 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥2,408.00
JP¥4,209.00
+74.8%
21.2%JP¥5,370.00JP¥2,600.00n/a10
Nov ’25JP¥2,765.00
JP¥4,424.00
+60.0%
22.1%JP¥6,150.00JP¥2,900.00n/a10
Oct ’25JP¥3,265.00
JP¥4,780.00
+46.4%
19.9%JP¥6,150.00JP¥2,900.00n/a9
Sep ’25JP¥3,915.00
JP¥5,091.11
+30.0%
17.8%JP¥6,150.00JP¥2,900.00n/a9
Aug ’25JP¥4,055.00
JP¥5,452.22
+34.5%
11.0%JP¥6,150.00JP¥4,500.00n/a9
Jul ’25JP¥4,690.00
JP¥5,441.11
+16.0%
11.3%JP¥6,150.00JP¥4,500.00n/a9
Jun ’25JP¥4,300.00
JP¥5,074.44
+18.0%
12.5%JP¥6,000.00JP¥4,300.00n/a9
May ’25JP¥4,190.00
JP¥4,938.89
+17.9%
15.0%JP¥6,000.00JP¥4,000.00n/a9
Apr ’25JP¥4,125.00
JP¥4,785.71
+16.0%
16.6%JP¥6,000.00JP¥3,800.00n/a7
Mar ’25JP¥4,575.00
JP¥4,233.33
-7.5%
22.8%JP¥5,800.00JP¥2,800.00n/a6
Feb ’25JP¥3,715.00
JP¥3,315.00
-10.8%
11.0%JP¥3,840.00JP¥2,800.00n/a6
Jan ’25JP¥3,065.00
JP¥3,248.33
+6.0%
11.8%JP¥3,840.00JP¥2,800.00n/a6
Dec ’24JP¥3,225.00
JP¥3,197.50
-0.9%
12.1%JP¥3,840.00JP¥2,800.00n/a4

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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