SCREEN Holdings (TSE:7735): Exploring Valuation After Recent Share Price Shifts

SCREEN Holdings (TSE:7735) has been on the radar of many investors after a mix of recent price shifts. Over the past month, its shares have dipped, even though the stock remains up year to date.

See our latest analysis for SCREEN Holdings.

After a stellar start to the year, with SCREEN Holdings posting a 33.85% share price return year to date, the recent retreat suggests some of that momentum is cooling as investors weigh future growth against current valuation. Still, those who held on for the long haul have seen an impressive 242.79% total shareholder return over three years, making SCREEN's journey a notable one in its sector.

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With shares now retreating from their highs, but longer-term gains still impressive, investors are left to wonder if SCREEN Holdings is currently undervalued or if current prices have already factored in all expected growth. Could this be a genuine buying opportunity, or has the market already priced in the company’s future potential?

Most Popular Narrative: 8.9% Undervalued

SCREEN Holdings' widely followed narrative points to a fair value above the last close, which could signal continued upside potential compared to market price. The price estimate has recently increased, adding intrigue to what underpins this optimism.

SCREEN Holdings is positioned to benefit from imminent investment cycles in AI-related semiconductor applications, with management highlighting robust demand for leading-edge nodes in foundry and memory (notably DRAM for AI servers). This is expected to drive a recovery in wafer processing equipment sales and bolster top-line revenue over the coming quarters and into FY2026.

Read the complete narrative.

Want the full playbook behind this potential? The narrative centers on breakthrough growth in a hot segment, as well as predicted shifts in industry profits and market share. What bold company forecasts turn this into a market-beating opportunity? Find out what’s fueling the optimism and see the numbers that matter most.

Result: Fair Value of ¥14,120 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, SCREEN's heavy reliance on China and the unpredictability of semiconductor investment cycles still present real risks that could upend the bullish outlook.

Find out about the key risks to this SCREEN Holdings narrative.

Build Your Own SCREEN Holdings Narrative

If you have a different perspective or want to form your own thesis, you can dig into the data and build a narrative yourself in just a few minutes. Do it your way

A great starting point for your SCREEN Holdings research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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