Espec Valuation

Is 6859 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 6859 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6859 (¥2610) is trading below our estimate of fair value (¥4627.42)

Significantly Below Fair Value: 6859 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6859?

Key metric: As 6859 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 6859. This is calculated by dividing 6859's market cap by their current earnings.
What is 6859's PE Ratio?
PE Ratio9.9x
EarningsJP¥5.77b
Market CapJP¥56.98b

Price to Earnings Ratio vs Peers

How does 6859's PE Ratio compare to its peers?

The above table shows the PE ratio for 6859 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average10.4x
7745 A&D HOLON Holdings Company
11.2x17.3%JP¥54.9b
6914 OPTEX GROUP Company
12.3x15.2%JP¥62.9b
6741 Nippon Signal
8.8xn/aJP¥57.0b
6745 Hochiki
9.4x3.9%JP¥60.6b
6859 Espec
9.9x4.4%JP¥57.0b

Price-To-Earnings vs Peers: 6859 is good value based on its Price-To-Earnings Ratio (9.9x) compared to the peer average (10.4x).


Price to Earnings Ratio vs Industry

How does 6859'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
6859 9.9xIndustry Avg. 13.3xNo. of Companies25PE0816243240+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 6859 is good value based on its Price-To-Earnings Ratio (9.9x) compared to the JP Electronic industry average (13.3x).


Price to Earnings Ratio vs Fair Ratio

What is 6859'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.

6859 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.9x
Fair PE Ratio11.6x

Price-To-Earnings vs Fair Ratio: 6859 is good value based on its Price-To-Earnings Ratio (9.9x) compared to the estimated Fair Price-To-Earnings Ratio (11.6x).


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 6859 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥2,610.00
JP¥4,100.00
+57.1%
2.4%JP¥4,200.00JP¥4,000.00n/a2
Jun ’25JP¥3,265.00
JP¥3,850.00
+17.9%
3.9%JP¥4,000.00JP¥3,700.00n/a2
May ’25JP¥2,960.00
JP¥3,600.00
+21.6%
2.8%JP¥3,700.00JP¥3,500.00n/a2
Apr ’25JP¥2,990.00
JP¥3,600.00
+20.4%
2.8%JP¥3,700.00JP¥3,500.00n/a2
Mar ’25JP¥2,836.00
JP¥3,350.00
+18.1%
4.5%JP¥3,500.00JP¥3,200.00n/a2
Nov ’24JP¥2,212.00
JP¥3,050.00
+37.9%
1.6%JP¥3,100.00JP¥3,000.00JP¥2,574.002
Oct ’24JP¥2,402.00
JP¥3,050.00
+27.0%
1.6%JP¥3,100.00JP¥3,000.00JP¥2,616.002
Sep ’24JP¥2,324.00
JP¥2,900.00
+24.8%
3.4%JP¥3,000.00JP¥2,800.00JP¥2,540.002
Aug ’24JP¥2,381.00
JP¥2,900.00
+21.8%
3.4%JP¥3,000.00JP¥2,800.00JP¥2,813.002
Jul ’24JP¥2,282.00
JP¥2,700.00
+18.3%
3.7%JP¥2,800.00JP¥2,600.00JP¥3,165.002
Jun ’24JP¥2,059.00
JP¥2,700.00
+31.1%
3.7%JP¥2,800.00JP¥2,600.00JP¥3,265.002
May ’24JP¥2,067.00
JP¥2,700.00
+30.6%
3.7%JP¥2,800.00JP¥2,600.00JP¥2,960.002
Apr ’24JP¥2,035.00
JP¥2,700.00
+32.7%
3.7%JP¥2,800.00JP¥2,600.00JP¥2,990.002
Mar ’24JP¥2,021.00
JP¥2,800.00
+38.5%
7.1%JP¥3,000.00JP¥2,600.00JP¥2,836.002

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.


Discover undervalued companies