Ferrotec Holdings Corporation

TSE:6890 Stock Report

Market Cap: JP¥117.6b

Ferrotec Holdings Valuation

Is 6890 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 6890 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6890 (¥2469) is trading above our estimate of fair value (¥1460.8)

Significantly Below Fair Value: 6890 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6890?

Key metric: As 6890 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 6890. This is calculated by dividing 6890's market cap by their current earnings.
What is 6890's PE Ratio?
PE Ratio7.4x
EarningsJP¥15.66b
Market CapJP¥117.64b

Price to Earnings Ratio vs Peers

How does 6890's PE Ratio compare to its peers?

The above table shows the PE ratio for 6890 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17.6x
6590 Shibaura Mechatronics
12.1x9.5%JP¥105.7b
6315 TOWA
14.5x20.8%JP¥121.7b
6871 Micronics Japan
17.6x28.7%JP¥143.7b
6055 JAPAN MATERIAL
26.2x20.5%JP¥164.7b
6890 Ferrotec Holdings
7.4x18.0%JP¥117.6b

Price-To-Earnings vs Peers: 6890 is good value based on its Price-To-Earnings Ratio (7.4x) compared to the peer average (17.6x).

Price to Earnings Ratio vs Industry

How does 6890's PE Ratio compare vs other companies in the JP Semiconductor Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
3856 Abalance
1.5xn/aUS$95.48m
No more companies available in this PE range
6890 7.4xIndustry Avg. 13.8xNo. of Companies8PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 6890 is good value based on its Price-To-Earnings Ratio (7.4x) compared to the JP Semiconductor industry average (13.8x).

Price to Earnings Ratio vs Fair Ratio

What is 6890'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.

6890 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.4x
Fair PE Ratio15.6x

Price-To-Earnings vs Fair Ratio: 6890 is good value based on its Price-To-Earnings Ratio (7.4x) compared to the estimated Fair Price-To-Earnings Ratio (15.6x).

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 6890 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥2,469.00
JP¥3,450.00
+39.7%
18.8%JP¥4,100.00JP¥2,800.00n/a2
Nov ’25JP¥2,497.00
JP¥3,650.00
+46.2%
23.3%JP¥4,500.00JP¥2,800.00n/a2
Oct ’25JP¥2,414.00
JP¥3,650.00
+51.2%
23.3%JP¥4,500.00JP¥2,800.00n/a2
Sep ’25JP¥2,441.00
JP¥3,650.00
+49.5%
23.3%JP¥4,500.00JP¥2,800.00n/a2
Aug ’25JP¥2,339.00
JP¥3,650.00
+56.0%
23.3%JP¥4,500.00JP¥2,800.00n/a2
Jul ’25JP¥2,765.00
JP¥4,650.00
+68.2%
3.2%JP¥4,800.00JP¥4,500.00n/a2
Jun ’25JP¥2,684.00
JP¥4,650.00
+73.2%
3.2%JP¥4,800.00JP¥4,500.00n/a2
May ’25JP¥2,985.00
JP¥4,650.00
+55.8%
3.2%JP¥4,800.00JP¥4,500.00n/a2
Apr ’25JP¥2,905.00
JP¥4,650.00
+60.1%
3.2%JP¥4,800.00JP¥4,500.00n/a2
Mar ’25JP¥2,970.00
JP¥4,466.67
+50.4%
1.1%JP¥4,500.00JP¥4,400.00n/a3
Feb ’25JP¥2,830.00
JP¥4,733.33
+67.3%
8.5%JP¥5,300.00JP¥4,400.00n/a3
Jan ’25JP¥2,658.00
JP¥4,900.00
+84.3%
8.2%JP¥5,300.00JP¥4,500.00n/a2
Dec ’24JP¥2,879.00
JP¥4,866.67
+69.0%
8.6%JP¥5,300.00JP¥4,300.00n/a3
Nov ’24JP¥2,636.00
JP¥4,866.67
+84.6%
8.6%JP¥5,300.00JP¥4,300.00JP¥2,497.003
Oct ’24JP¥2,860.00
JP¥4,866.67
+70.2%
8.6%JP¥5,300.00JP¥4,300.00JP¥2,414.003
Sep ’24JP¥3,040.00
JP¥5,000.00
+64.5%
4.9%JP¥5,300.00JP¥4,700.00JP¥2,441.003
Aug ’24JP¥3,485.00
JP¥5,000.00
+43.5%
4.9%JP¥5,300.00JP¥4,700.00JP¥2,339.003
Jul ’24JP¥3,635.00
JP¥5,000.00
+37.6%
4.9%JP¥5,300.00JP¥4,700.00JP¥2,765.003
Jun ’24JP¥3,185.00
JP¥4,833.33
+51.8%
9.6%JP¥5,300.00JP¥4,200.00JP¥2,684.003
May ’24JP¥3,085.00
JP¥4,666.67
+51.3%
14.1%JP¥5,600.00JP¥4,200.00JP¥2,985.003
Apr ’24JP¥3,320.00
JP¥4,666.67
+40.6%
14.1%JP¥5,600.00JP¥4,200.00JP¥2,905.003
Mar ’24JP¥3,315.00
JP¥4,466.67
+34.7%
19.4%JP¥5,600.00JP¥3,500.00JP¥2,970.003
Feb ’24JP¥3,260.00
JP¥4,466.67
+37.0%
19.4%JP¥5,600.00JP¥3,500.00JP¥2,830.003
Jan ’24JP¥2,787.00
JP¥4,100.00
+47.1%
14.6%JP¥4,700.00JP¥3,500.00JP¥2,658.002
Dec ’23JP¥3,270.00
JP¥4,100.00
+25.4%
14.6%JP¥4,700.00JP¥3,500.00JP¥2,879.002
Nov ’23JP¥2,484.00
JP¥4,100.00
+65.1%
14.6%JP¥4,700.00JP¥3,500.00JP¥2,636.002

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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