Renesas Electronics Corporation

TSE:6723 Stock Report

Market Cap: JP¥3.6t

Renesas Electronics Valuation

Is 6723 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 6723 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6723 (¥2015) is trading below our estimate of fair value (¥3697)

Significantly Below Fair Value: 6723 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6723?

Key metric: As 6723 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 6723. This is calculated by dividing 6723's market cap by their current earnings.
What is 6723's PE Ratio?
PE Ratio13.6x
EarningsJP¥266.34b
Market CapJP¥3.61t

Price to Earnings Ratio vs Peers

How does 6723's PE Ratio compare to its peers?

The above table shows the PE ratio for 6723 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average25x
6963 ROHM
29.8x35.7%JP¥558.3b
6967 Shinko Electric Industries
41.8x23.7%JP¥713.0b
6526 Socionext
18.9x11.8%JP¥423.0b
6966 Mitsui High-tec
9.4x7.6%JP¥140.7b
6723 Renesas Electronics
13.6x10.5%JP¥3.6t

Price-To-Earnings vs Peers: 6723 is good value based on its Price-To-Earnings Ratio (13.6x) compared to the peer average (25x).

Price to Earnings Ratio vs Industry

How does 6723's PE Ratio compare vs other companies in the JP Semiconductor Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
3856 Abalance
1.5xn/aUS$92.46m
No more companies available in this PE range
6723 13.6xIndustry Avg. 13.7xNo. of Companies7PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 6723 is good value based on its Price-To-Earnings Ratio (13.6x) compared to the JP Semiconductor industry average (13.7x).

Price to Earnings Ratio vs Fair Ratio

What is 6723'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.

6723 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.6x
Fair PE Ratio23x

Price-To-Earnings vs Fair Ratio: 6723 is good value based on its Price-To-Earnings Ratio (13.6x) compared to the estimated Fair Price-To-Earnings Ratio (23x).

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 6723 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥2,015.00
JP¥3,125.38
+55.1%
23.0%JP¥5,200.00JP¥2,300.00n/a13
Nov ’25JP¥1,991.50
JP¥3,194.62
+60.4%
22.8%JP¥5,200.00JP¥2,300.00n/a13
Oct ’25JP¥2,160.50
JP¥3,545.45
+64.1%
17.9%JP¥5,200.00JP¥2,800.00n/a11
Sep ’25JP¥2,514.00
JP¥3,704.55
+47.4%
14.9%JP¥5,200.00JP¥3,100.00n/a11
Aug ’25JP¥2,395.00
JP¥3,725.45
+55.6%
14.5%JP¥5,200.00JP¥3,100.00n/a11
Jul ’25JP¥3,001.00
JP¥3,580.00
+19.3%
9.9%JP¥4,000.00JP¥2,900.00n/a11
Jun ’25JP¥2,936.00
JP¥3,380.00
+15.1%
10.7%JP¥4,000.00JP¥2,900.00n/a11
May ’25JP¥2,635.50
JP¥3,380.00
+28.2%
10.7%JP¥4,000.00JP¥2,900.00n/a11
Apr ’25JP¥2,633.50
JP¥3,376.36
+28.2%
11.7%JP¥4,160.00JP¥2,900.00n/a11
Mar ’25JP¥2,589.00
JP¥3,327.69
+28.5%
11.4%JP¥4,160.00JP¥2,900.00n/a13
Feb ’25JP¥2,403.50
JP¥3,192.86
+32.8%
7.6%JP¥3,800.00JP¥2,900.00n/a14
Jan ’25JP¥2,549.00
JP¥3,073.33
+20.6%
14.0%JP¥3,800.00JP¥1,800.00n/a15
Dec ’24JP¥2,562.50
JP¥3,000.00
+17.1%
16.6%JP¥3,800.00JP¥1,800.00n/a14
Nov ’24JP¥2,014.50
JP¥2,951.43
+46.5%
16.8%JP¥3,800.00JP¥1,800.00JP¥1,991.5014
Oct ’24JP¥2,285.50
JP¥3,019.29
+32.1%
17.8%JP¥4,050.00JP¥1,800.00JP¥2,160.5014
Sep ’24JP¥2,465.00
JP¥2,962.86
+20.2%
18.4%JP¥4,160.00JP¥1,800.00JP¥2,514.0014
Aug ’24JP¥2,742.50
JP¥2,962.86
+8.0%
18.4%JP¥4,160.00JP¥1,800.00JP¥2,395.0014
Jul ’24JP¥2,701.50
JP¥2,648.46
-2.0%
20.1%JP¥3,800.00JP¥1,800.00JP¥3,001.0013
Jun ’24JP¥2,380.00
JP¥2,454.62
+3.1%
25.4%JP¥3,800.00JP¥1,130.00JP¥2,936.0013
May ’24JP¥1,783.50
JP¥2,323.85
+30.3%
25.6%JP¥3,800.00JP¥1,130.00JP¥2,635.5013
Apr ’24JP¥1,913.50
JP¥2,174.62
+13.6%
27.2%JP¥3,600.00JP¥1,130.00JP¥2,633.5013
Mar ’24JP¥1,754.00
JP¥2,159.23
+23.1%
27.7%JP¥3,600.00JP¥1,130.00JP¥2,589.0013
Feb ’24JP¥1,357.00
JP¥2,074.62
+52.9%
26.1%JP¥3,300.00JP¥1,130.00JP¥2,403.5013
Jan ’24JP¥1,183.50
JP¥2,113.08
+78.5%
25.0%JP¥3,300.00JP¥1,130.00JP¥2,549.0013
Dec ’23JP¥1,362.50
JP¥2,139.23
+57.0%
23.7%JP¥3,300.00JP¥1,130.00JP¥2,562.5013
Nov ’23JP¥1,259.00
JP¥2,150.00
+70.8%
23.0%JP¥3,300.00JP¥1,130.00JP¥2,014.5014

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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