Seiko Epson Corporation

TSE:6724 Stock Report

Market Cap: JP¥888.7b

Seiko Epson Valuation

Is 6724 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • 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 6724 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6724 (¥2709) is trading below our estimate of fair value (¥3994.97)

Significantly Below Fair Value: 6724 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6724?

Key metric: As 6724 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 6724. This is calculated by dividing 6724's market cap by their current earnings.
What is 6724's PE Ratio?
PE Ratio18.4x
EarningsJP¥48.42b
Market CapJP¥888.69b

Price to Earnings Ratio vs Peers

How does 6724's PE Ratio compare to its peers?

The above table shows the PE ratio for 6724 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.9x
7752 Ricoh Company
25.5x19.0%JP¥966.1b
6448 Brother Industries
22.8x13.3%JP¥703.5b
4901 FUJIFILM Holdings
16.4x9.3%JP¥3.9t
6588 Toshiba Tec
10.8x-8.9%JP¥191.4b
6724 Seiko Epson
18.4x14.2%JP¥888.7b

Price-To-Earnings vs Peers: 6724 is good value based on its Price-To-Earnings Ratio (18.4x) compared to the peer average (18.9x).

Price to Earnings Ratio vs Industry

How does 6724's PE Ratio compare vs other companies in the JP Tech Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
6724 18.4xIndustry Avg. 21.8xNo. of Companies4PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 6724 is good value based on its Price-To-Earnings Ratio (18.4x) compared to the Asian Tech industry average (21.8x).

Price to Earnings Ratio vs Fair Ratio

What is 6724'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.

6724 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.4x
Fair PE Ratio18.2x

Price-To-Earnings vs Fair Ratio: 6724 is expensive based on its Price-To-Earnings Ratio (18.4x) compared to the estimated Fair Price-To-Earnings Ratio (18.2x).

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 6724 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥2,709.00
JP¥2,456.25
-9.3%
17.3%JP¥3,200.00JP¥1,950.00n/a8
Nov ’25JP¥2,747.50
JP¥2,418.75
-12.0%
15.6%JP¥3,000.00JP¥1,950.00n/a8
Oct ’25JP¥2,651.50
JP¥2,381.25
-10.2%
15.6%JP¥3,000.00JP¥1,950.00n/a8
Sep ’25JP¥2,710.50
JP¥2,381.25
-12.1%
15.6%JP¥3,000.00JP¥1,950.00n/a8
Aug ’25JP¥2,546.50
JP¥2,418.75
-5.0%
18.3%JP¥3,200.00JP¥1,950.00n/a8
Jul ’25JP¥2,513.50
JP¥2,418.75
-3.8%
18.3%JP¥3,200.00JP¥1,950.00n/a8
Jun ’25JP¥2,527.00
JP¥2,431.25
-3.8%
17.8%JP¥3,200.00JP¥1,950.00n/a8
May ’25JP¥2,550.00
JP¥2,464.29
-3.4%
17.4%JP¥3,200.00JP¥1,950.00n/a7
Apr ’25JP¥2,643.50
JP¥2,378.57
-10.0%
19.8%JP¥3,200.00JP¥1,900.00n/a7
Mar ’25JP¥2,478.50
JP¥2,363.75
-4.6%
18.7%JP¥3,200.00JP¥1,900.00n/a8
Feb ’25JP¥2,149.50
JP¥2,301.25
+7.1%
17.0%JP¥3,000.00JP¥1,800.00n/a8
Jan ’25JP¥2,110.50
JP¥2,320.00
+9.9%
16.5%JP¥3,000.00JP¥1,800.00n/a8
Dec ’24JP¥2,168.00
JP¥2,306.67
+6.4%
15.8%JP¥3,000.00JP¥1,800.00n/a9
Nov ’24JP¥2,069.00
JP¥2,347.78
+13.5%
19.8%JP¥3,300.00JP¥1,800.00JP¥2,747.509
Oct ’24JP¥2,349.50
JP¥2,292.22
-2.4%
22.9%JP¥3,300.00JP¥1,600.00JP¥2,651.509
Sep ’24JP¥2,293.50
JP¥2,292.22
-0.06%
22.9%JP¥3,300.00JP¥1,600.00JP¥2,710.509
Aug ’24JP¥2,387.50
JP¥2,325.56
-2.6%
24.8%JP¥3,400.00JP¥1,600.00JP¥2,546.509
Jul ’24JP¥2,239.00
JP¥2,303.33
+2.9%
25.1%JP¥3,400.00JP¥1,600.00JP¥2,513.509
Jun ’24JP¥2,121.00
JP¥2,233.00
+5.3%
25.5%JP¥3,400.00JP¥1,600.00JP¥2,527.0010
May ’24JP¥2,046.00
JP¥2,185.00
+6.8%
24.9%JP¥3,400.00JP¥1,600.00JP¥2,550.0010
Apr ’24JP¥1,881.00
JP¥2,216.67
+17.8%
25.3%JP¥3,400.00JP¥1,600.00JP¥2,643.509
Mar ’24JP¥1,881.00
JP¥2,261.11
+20.2%
24.0%JP¥3,400.00JP¥1,700.00JP¥2,478.509
Feb ’24JP¥1,890.00
JP¥2,294.44
+21.4%
23.6%JP¥3,400.00JP¥1,700.00JP¥2,149.509
Jan ’24JP¥1,926.00
JP¥2,297.78
+19.3%
23.8%JP¥3,400.00JP¥1,700.00JP¥2,110.509
Dec ’23JP¥2,120.00
JP¥2,321.11
+9.5%
22.9%JP¥3,400.00JP¥1,700.00JP¥2,168.009
Nov ’23JP¥2,053.00
JP¥2,343.33
+14.1%
23.4%JP¥3,400.00JP¥1,700.00JP¥2,069.009

Analyst Forecast: Target price is lower than the current share price.

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