Seiko Epson Corporation

TSE:6724 Stock Report

Market Cap: JP¥858.9b

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 (¥2590) is trading below our estimate of fair value (¥3474.49)

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?

Other financial metrics that can be useful for relative valuation.

6724 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.6x
Enterprise Value/EBITDA5.8x
PEG Ratio1.6x

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 Average16x
7752 Ricoh Company
14.4x9.7%JP¥822.2b
6448 Brother Industries
16.7x5.8%JP¥713.0b
4901 FUJIFILM Holdings
17.2x7.2%JP¥4.1t
7751 Canon
15.8x3.2%JP¥4.2t
6724 Seiko Epson
16.3x10.2%JP¥858.9b

Price-To-Earnings vs Peers: 6724 is expensive based on its Price-To-Earnings Ratio (16.3x) compared to the peer average (16x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.5%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.5%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: 6724 is good value based on its Price-To-Earnings Ratio (16.3x) compared to the Asian Tech industry average (23x).


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 Ratio16.3x
Fair PE Ratio18.2x

Price-To-Earnings vs Fair Ratio: 6724 is good value based on its Price-To-Earnings Ratio (16.3x) 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¥2,590.00
JP¥2,438.75
-5.8%
16.7%JP¥3,200.00JP¥1,950.00n/a8
Apr ’25JP¥2,643.50
JP¥2,363.75
-10.6%
18.7%JP¥3,200.00JP¥1,900.00n/a8
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¥1,800.00n/a9
Oct ’24JP¥2,349.50
JP¥2,292.22
-2.4%
22.9%JP¥3,300.00JP¥1,600.00n/a9
Sep ’24JP¥2,293.50
JP¥2,292.22
-0.06%
22.9%JP¥3,300.00JP¥1,600.00n/a9
Aug ’24JP¥2,387.50
JP¥2,325.56
-2.6%
24.8%JP¥3,400.00JP¥1,600.00n/a9
Jul ’24JP¥2,239.00
JP¥2,303.33
+2.9%
25.1%JP¥3,400.00JP¥1,600.00n/a9
Jun ’24JP¥2,121.00
JP¥2,233.00
+5.3%
25.5%JP¥3,400.00JP¥1,600.00n/a10
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
Oct ’23JP¥1,970.00
JP¥2,299.00
+16.7%
23.7%JP¥3,400.00JP¥1,700.00JP¥2,349.5010
Sep ’23JP¥2,145.00
JP¥2,274.00
+6.0%
24.3%JP¥3,400.00JP¥1,700.00JP¥2,293.5010
Aug ’23JP¥1,999.00
JP¥2,224.00
+11.3%
23.6%JP¥3,400.00JP¥1,700.00JP¥2,387.5010
Jul ’23JP¥1,959.00
JP¥2,208.00
+12.7%
24.6%JP¥3,400.00JP¥1,500.00JP¥2,239.0010
Jun ’23JP¥2,192.00
JP¥2,129.00
-2.9%
22.2%JP¥3,000.00JP¥1,500.00JP¥2,121.0010
May ’23JP¥1,818.00
JP¥2,109.00
+16.0%
21.9%JP¥3,000.00JP¥1,500.00JP¥2,046.0010

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


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