NEC Corporation

TSE:6701 Stock Report

Market Cap: JP¥3.3t

NEC Valuation

Is 6701 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 6701 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6701 (¥12315) is trading below our estimate of fair value (¥21387.38)

Significantly Below Fair Value: 6701 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6701?

Key metric: As 6701 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 6701. This is calculated by dividing 6701's market cap by their current earnings.
What is 6701's PE Ratio?
PE Ratio21.9x
EarningsJP¥150.07b
Market CapJP¥3.31t

Price to Earnings Ratio vs Peers

How does 6701's PE Ratio compare to its peers?

The above table shows the PE ratio for 6701 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average28.4x
4307 Nomura Research Institute
29.2x8.2%JP¥2.6t
6702 Fujitsu
20x8.5%JP¥5.1t
4684 OBICLtd
35.4x7.6%JP¥2.2t
9613 NTT DATA Group
29x12.6%JP¥3.9t
6701 NEC
21.9x12.7%JP¥3.3t

Price-To-Earnings vs Peers: 6701 is good value based on its Price-To-Earnings Ratio (21.9x) compared to the peer average (28.4x).

Price to Earnings Ratio vs Industry

How does 6701's PE Ratio compare vs other companies in the JP IT Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
6701 21.9xIndustry Avg. 17.6xNo. of Companies30PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 6701 is expensive based on its Price-To-Earnings Ratio (21.9x) compared to the JP IT industry average (17.6x).

Price to Earnings Ratio vs Fair Ratio

What is 6701'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.

6701 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.9x
Fair PE Ratio37.2x

Price-To-Earnings vs Fair Ratio: 6701 is good value based on its Price-To-Earnings Ratio (21.9x) compared to the estimated Fair Price-To-Earnings Ratio (37.2x).

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 6701 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥12,315.00
JP¥15,010.00
+21.9%
9.7%JP¥17,000.00JP¥11,700.00n/a10
Nov ’25JP¥12,655.00
JP¥15,010.00
+18.6%
9.7%JP¥17,000.00JP¥11,700.00n/a10
Oct ’25JP¥14,300.00
JP¥14,918.18
+4.3%
7.3%JP¥16,500.00JP¥12,500.00n/a11
Sep ’25JP¥12,865.00
JP¥14,518.18
+12.9%
8.7%JP¥16,500.00JP¥12,500.00n/a11
Aug ’25JP¥12,845.00
JP¥14,127.27
+10.0%
11.5%JP¥16,500.00JP¥11,500.00n/a11
Jul ’25JP¥13,250.00
JP¥13,154.55
-0.7%
8.9%JP¥16,000.00JP¥11,500.00n/a11
Jun ’25JP¥11,625.00
JP¥12,609.09
+8.5%
8.8%JP¥14,000.00JP¥10,000.00n/a11
May ’25JP¥11,195.00
JP¥11,790.91
+5.3%
11.2%JP¥13,800.00JP¥9,500.00n/a11
Apr ’25JP¥10,655.00
JP¥10,918.18
+2.5%
11.9%JP¥12,700.00JP¥8,000.00n/a11
Mar ’25JP¥10,335.00
JP¥10,425.00
+0.9%
12.4%JP¥12,700.00JP¥8,000.00n/a12
Feb ’25JP¥9,583.00
JP¥9,533.33
-0.5%
14.7%JP¥12,700.00JP¥7,100.00n/a12
Jan ’25JP¥8,350.00
JP¥9,016.67
+8.0%
13.0%JP¥11,100.00JP¥7,000.00n/a12
Dec ’24JP¥8,357.00
JP¥8,660.00
+3.6%
10.9%JP¥10,000.00JP¥7,000.00n/a12
Nov ’24JP¥7,033.00
JP¥8,409.23
+19.6%
12.1%JP¥10,000.00JP¥6,700.00JP¥12,655.0013
Oct ’24JP¥8,261.00
JP¥8,386.15
+1.5%
12.3%JP¥10,000.00JP¥6,700.00JP¥14,300.0013
Sep ’24JP¥7,771.00
JP¥8,278.46
+6.5%
12.8%JP¥10,000.00JP¥6,700.00JP¥12,865.0013
Aug ’24JP¥7,175.00
JP¥7,847.69
+9.4%
12.6%JP¥10,000.00JP¥6,700.00JP¥12,845.0013
Jul ’24JP¥6,965.00
JP¥7,232.31
+3.8%
14.7%JP¥9,600.00JP¥4,700.00JP¥13,250.0013
Jun ’24JP¥6,650.00
JP¥7,147.69
+7.5%
15.9%JP¥9,600.00JP¥4,700.00JP¥11,625.0013
May ’24JP¥5,950.00
JP¥6,392.31
+7.4%
17.5%JP¥9,600.00JP¥4,700.00JP¥11,195.0013
Apr ’24JP¥5,100.00
JP¥6,346.15
+24.4%
17.3%JP¥9,600.00JP¥4,700.00JP¥10,655.0013
Mar ’24JP¥4,825.00
JP¥6,416.15
+33.0%
17.1%JP¥9,600.00JP¥4,700.00JP¥10,335.0013
Feb ’24JP¥4,840.00
JP¥6,408.46
+32.4%
17.4%JP¥9,600.00JP¥4,600.00JP¥9,583.0013
Jan ’24JP¥4,635.00
JP¥6,423.85
+38.6%
17.5%JP¥9,600.00JP¥4,600.00JP¥8,350.0013
Dec ’23JP¥4,825.00
JP¥6,470.00
+34.1%
17.3%JP¥9,600.00JP¥4,600.00JP¥8,357.0013
Nov ’23JP¥4,790.00
JP¥6,732.14
+40.5%
16.9%JP¥9,600.00JP¥4,600.00JP¥7,033.0014

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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