Tohoku Electric Power Company, Incorporated

TSE:9506 Stock Report

Market Cap: JP¥613.7b

Tohoku Electric Power Company Valuation

Is 9506 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 9506 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 9506 (¥1227) is trading above our estimate of fair value (¥168.11)

Significantly Below Fair Value: 9506 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 9506?

Key metric: As 9506 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 9506. This is calculated by dividing 9506's market cap by their current earnings.
What is 9506's PE Ratio?
PE Ratio3.5x
EarningsJP¥176.74b
Market CapJP¥613.71b

Price to Earnings Ratio vs Peers

How does 9506's PE Ratio compare to its peers?

The above table shows the PE ratio for 9506 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average6.8x
9508 Kyushu Electric Power Company
7.6x6.7%JP¥671.3b
9501 Tokyo Electric Power Company Holdings
8.4x19.2%JP¥898.8b
9504 Chugoku Electric Power
5.8x2.6%JP¥359.5b
9502 Chubu Electric Power Company
5.2x-5.5%JP¥1.2t
9506 Tohoku Electric Power Company
3.5x-4.3%JP¥613.7b

Price-To-Earnings vs Peers: 9506 is good value based on its Price-To-Earnings Ratio (3.5x) compared to the peer average (6.8x).

Price to Earnings Ratio vs Industry

How does 9506's PE Ratio compare vs other companies in the Asian Electric Utilities Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
9506 3.5xIndustry Avg. 16.6xNo. of Companies15PE01224364860+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 9506 is good value based on its Price-To-Earnings Ratio (3.5x) compared to the Asian Electric Utilities industry average (16.3x).

Price to Earnings Ratio vs Fair Ratio

What is 9506'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.

9506 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.5x
Fair PE Ratio8.2x

Price-To-Earnings vs Fair Ratio: 9506 is good value based on its Price-To-Earnings Ratio (3.5x) compared to the estimated Fair Price-To-Earnings Ratio (8.2x).

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 9506 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥1,227.00
JP¥1,920.00
+56.5%
31.5%JP¥3,110.00JP¥1,420.00n/a5
Nov ’25JP¥1,320.00
JP¥1,920.00
+45.5%
31.5%JP¥3,110.00JP¥1,420.00n/a5
Oct ’25JP¥1,357.00
JP¥2,045.00
+50.7%
30.2%JP¥3,110.00JP¥1,620.00n/a4
Sep ’25JP¥1,324.50
JP¥2,045.00
+54.4%
30.2%JP¥3,110.00JP¥1,620.00n/a4
Aug ’25JP¥1,231.00
JP¥2,082.50
+69.2%
28.7%JP¥3,100.00JP¥1,620.00n/a4
Jul ’25JP¥1,434.00
JP¥2,082.50
+45.2%
28.7%JP¥3,100.00JP¥1,620.00n/a4
Jun ’25JP¥1,590.50
JP¥1,672.50
+5.2%
21.5%JP¥2,000.00JP¥1,080.00n/a4
May ’25JP¥1,309.00
JP¥1,278.00
-2.4%
32.6%JP¥2,000.00JP¥840.00n/a5
Apr ’25JP¥1,160.50
JP¥1,278.00
+10.1%
32.6%JP¥2,000.00JP¥840.00n/a5
Mar ’25JP¥1,017.00
JP¥1,278.00
+25.7%
32.6%JP¥2,000.00JP¥840.00n/a5
Feb ’25JP¥978.00
JP¥1,155.00
+18.1%
28.3%JP¥1,700.00JP¥840.00n/a4
Jan ’25JP¥958.90
JP¥1,155.00
+20.5%
28.3%JP¥1,700.00JP¥840.00n/a4
Dec ’24JP¥961.20
JP¥1,292.00
+34.4%
31.0%JP¥1,840.00JP¥840.00n/a5
Nov ’24JP¥971.40
JP¥1,180.00
+21.5%
32.4%JP¥1,840.00JP¥800.00JP¥1,320.005
Oct ’24JP¥967.60
JP¥1,186.00
+22.6%
33.1%JP¥1,870.00JP¥800.00JP¥1,357.005
Sep ’24JP¥1,019.50
JP¥1,042.00
+2.2%
47.7%JP¥1,870.00JP¥530.00JP¥1,324.505
Aug ’24JP¥1,020.50
JP¥820.00
-19.6%
25.2%JP¥1,070.00JP¥530.00JP¥1,231.005
Jul ’24JP¥890.20
JP¥857.50
-3.7%
25.1%JP¥1,070.00JP¥530.00JP¥1,434.004
Jun ’24JP¥837.00
JP¥758.00
-9.4%
23.9%JP¥1,070.00JP¥530.00JP¥1,590.505
May ’24JP¥723.00
JP¥724.00
+0.1%
17.6%JP¥900.00JP¥530.00JP¥1,309.005
Apr ’24JP¥659.00
JP¥724.00
+9.9%
17.6%JP¥900.00JP¥530.00JP¥1,160.505
Mar ’24JP¥639.00
JP¥724.00
+13.3%
17.6%JP¥900.00JP¥530.00JP¥1,017.005
Feb ’24JP¥646.00
JP¥726.00
+12.4%
18.0%JP¥910.00JP¥530.00JP¥978.005
Jan ’24JP¥691.00
JP¥794.00
+14.9%
31.0%JP¥1,250.00JP¥530.00JP¥958.905
Dec ’23JP¥636.00
JP¥750.00
+17.9%
28.5%JP¥1,160.00JP¥530.00JP¥961.205
Nov ’23JP¥616.00
JP¥720.00
+16.9%
21.9%JP¥1,010.00JP¥530.00JP¥971.405

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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