Environment Friendly Holdings Corp.

TSE:3777 Stock Report

Market Cap: JP¥9.0b

Environment Friendly Holdings Valuation

Is 3777 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-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 3777 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3777 (¥31) is trading below our estimate of fair value (¥188.48)

Significantly Below Fair Value: 3777 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3777?

Key metric: As 3777 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 3777. This is calculated by dividing 3777's market cap by their current revenue.
What is 3777's PS Ratio?
PS Ratio0.4x
SalesJP¥20.13b
Market CapJP¥8.98b

Price to Sales Ratio vs Peers

How does 3777's PS Ratio compare to its peers?

The above table shows the PS ratio for 3777 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.5x
9514 EF-ON
0.5x4.9%JP¥9.0b
1711 SDS HOLDINGSLtd
0.6xn/aJP¥2.7b
2743 Pixel Companyz
7.8xn/aJP¥5.5b
9522 Renewable Japan
1.1xn/aJP¥37.3b
3777 Environment Friendly Holdings
0.4xn/aJP¥9.0b

Price-To-Sales vs Peers: 3777 is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (2.5x).


Price to Sales Ratio vs Industry

How does 3777's PS Ratio compare vs other companies in the Asian Renewable Energy Industry?

40 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.2.3x9.0%
3777 Environment Friendly Holdings
0.4xn/aUS$58.01m
3777 0.4xIndustry Avg. 2.3xNo. of Companies49PS02.44.87.29.612+
40 CompaniesEstimated GrowthMarket Cap
Industry Avg.2.3x14.6%
3777 Environment Friendly Holdings
0.4xn/aUS$58.01m
No more companies

Price-To-Sales vs Industry: 3777 is good value based on its Price-To-Sales Ratio (0.4x) compared to the Asian Renewable Energy industry average (2.3x).


Price to Sales Ratio vs Fair Ratio

What is 3777's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

3777 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.4x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 3777's Price-To-Sales Fair Ratio for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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