Hirose Electric Co.,Ltd.

TSE:6806 Stock Report

Market Cap: JP¥599.4b

Hirose ElectricLtd Valuation

Is 6806 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 6806 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6806 (¥17825) is trading below our estimate of fair value (¥25124.75)

Significantly Below Fair Value: 6806 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6806?

Key metric: As 6806 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 6806. This is calculated by dividing 6806's market cap by their current earnings.
What is 6806's PE Ratio?
PE Ratio19.2x
EarningsJP¥31.41b
Market CapJP¥599.40b

Price to Earnings Ratio vs Peers

How does 6806's PE Ratio compare to its peers?

The above table shows the PE ratio for 6806 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.3x
5344 MaruwaLtd
32.5x20.2%JP¥548.4b
4062 IbidenLtd
19.5x17.9%JP¥653.7b
6965 Hamamatsu Photonics K.K
22.1x10.4%JP¥536.8b
4980 Dexerials
15x4.1%JP¥415.7b
6806 Hirose ElectricLtd
19.2x6.6%JP¥599.4b

Price-To-Earnings vs Peers: 6806 is good value based on its Price-To-Earnings Ratio (19.2x) compared to the peer average (22.3x).

Price to Earnings Ratio vs Industry

How does 6806's PE Ratio compare vs other companies in the JP Electronic Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
6806 19.2xIndustry Avg. 13.5xNo. of Companies22PE0816243240+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 6806 is expensive based on its Price-To-Earnings Ratio (19.2x) compared to the JP Electronic industry average (13.5x).

Price to Earnings Ratio vs Fair Ratio

What is 6806'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.

6806 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.2x
Fair PE Ratio15x

Price-To-Earnings vs Fair Ratio: 6806 is expensive based on its Price-To-Earnings Ratio (19.2x) compared to the estimated Fair Price-To-Earnings Ratio (15x).

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 6806 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥17,825.00
JP¥21,400.00
+20.1%
13.3%JP¥26,000.00JP¥16,900.00n/a14
Nov ’25JP¥17,985.00
JP¥21,342.86
+18.7%
13.2%JP¥26,000.00JP¥16,900.00n/a14
Oct ’25JP¥18,380.00
JP¥21,207.69
+15.4%
13.2%JP¥26,000.00JP¥16,900.00n/a13
Sep ’25JP¥19,140.00
JP¥21,000.00
+9.7%
13.4%JP¥26,000.00JP¥16,900.00n/a13
Aug ’25JP¥17,625.00
JP¥20,603.85
+16.9%
12.1%JP¥25,000.00JP¥16,900.00n/a13
Jul ’25JP¥17,730.00
JP¥18,653.57
+5.2%
14.0%JP¥25,000.00JP¥15,000.00n/a14
Jun ’25JP¥17,500.00
JP¥17,867.86
+2.1%
12.0%JP¥22,300.00JP¥15,000.00n/a14
May ’25JP¥16,810.00
JP¥17,628.57
+4.9%
12.2%JP¥23,300.00JP¥15,000.00n/a14
Apr ’25JP¥15,515.00
JP¥17,569.23
+13.2%
13.1%JP¥23,300.00JP¥15,000.00n/a13
Mar ’25JP¥15,875.00
JP¥18,075.00
+13.9%
11.6%JP¥23,300.00JP¥15,000.00n/a12
Feb ’25JP¥17,305.00
JP¥18,091.67
+4.5%
11.9%JP¥23,300.00JP¥15,000.00n/a12
Jan ’25JP¥15,965.00
JP¥18,108.33
+13.4%
11.9%JP¥23,300.00JP¥15,000.00n/a12
Dec ’24JP¥16,360.00
JP¥18,300.00
+11.9%
11.7%JP¥23,300.00JP¥15,000.00n/a12
Nov ’24JP¥17,165.00
JP¥18,366.67
+7.0%
11.8%JP¥23,300.00JP¥15,000.00JP¥17,985.0012
Oct ’24JP¥17,320.00
JP¥18,538.46
+7.0%
10.9%JP¥23,300.00JP¥15,000.00JP¥18,380.0013
Sep ’24JP¥17,675.00
JP¥19,107.14
+8.1%
13.6%JP¥25,000.00JP¥15,000.00JP¥19,140.0014
Aug ’24JP¥17,995.00
JP¥19,392.86
+7.8%
12.8%JP¥25,000.00JP¥15,000.00JP¥17,625.0014
Jul ’24JP¥19,075.00
JP¥19,457.14
+2.0%
13.1%JP¥25,000.00JP¥14,700.00JP¥17,730.0014
Jun ’24JP¥18,850.00
JP¥18,871.43
+0.1%
14.9%JP¥25,000.00JP¥14,600.00JP¥17,500.0014
May ’24JP¥18,390.00
JP¥18,714.29
+1.8%
14.6%JP¥25,000.00JP¥14,600.00JP¥16,810.0014
Apr ’24JP¥17,270.00
JP¥18,650.00
+8.0%
13.8%JP¥25,000.00JP¥14,600.00JP¥15,515.0014
Mar ’24JP¥16,790.00
JP¥18,828.57
+12.1%
14.1%JP¥25,000.00JP¥14,600.00JP¥15,875.0014
Feb ’24JP¥16,980.00
JP¥19,128.57
+12.7%
13.7%JP¥25,000.00JP¥14,600.00JP¥17,305.0014
Jan ’24JP¥16,600.00
JP¥19,621.43
+18.2%
13.4%JP¥25,000.00JP¥15,700.00JP¥15,965.0014
Dec ’23JP¥18,360.00
JP¥19,942.86
+8.6%
13.7%JP¥25,000.00JP¥15,700.00JP¥16,360.0014
Nov ’23JP¥19,310.00
JP¥20,057.14
+3.9%
12.5%JP¥25,000.00JP¥15,800.00JP¥17,165.0014

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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