Kaori Heat Treatment Co., Ltd.

TWSE:8996 Stock Report

Market Cap: NT$30.2b

Kaori Heat Treatment Valuation

Is 8996 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • 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 8996 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 8996 (NT$323) is trading above our estimate of fair value (NT$114.16)

Significantly Below Fair Value: 8996 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 8996?

Key metric: As 8996 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 8996. This is calculated by dividing 8996's market cap by their current earnings.
What is 8996's PE Ratio?
PE Ratio54.5x
EarningsNT$537.43m
Market CapNT$30.22b

Price to Earnings Ratio vs Peers

How does 8996's PE Ratio compare to its peers?

The above table shows the PE ratio for 8996 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.6x
2421 Sunonwealth Electric Machine Industry
21.8x30.9%NT$28.6b
7750 Syntec Technology
29.7xn/aNT$33.3b
6944 Mega Union Technology
18.8xn/aNT$25.1b
6613 Nova Technology
12.2xn/aNT$14.6b
8996 Kaori Heat Treatment
54.5x53.0%NT$30.2b

Price-To-Earnings vs Peers: 8996 is expensive based on its Price-To-Earnings Ratio (54.5x) compared to the peer average (20.6x).

Price to Earnings Ratio vs Industry

How does 8996's PE Ratio compare vs other companies in the TW Machinery Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
8996 54.5xIndustry Avg. 19.7xNo. of Companies16PE01224364860+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 8996 is expensive based on its Price-To-Earnings Ratio (54.5x) compared to the TW Machinery industry average (19.7x).

Price to Earnings Ratio vs Fair Ratio

What is 8996'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.

8996 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio54.5x
Fair PE Ratio50.4x

Price-To-Earnings vs Fair Ratio: 8996 is expensive based on its Price-To-Earnings Ratio (54.5x) compared to the estimated Fair Price-To-Earnings Ratio (50.4x).

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 8996 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentNT$323.00
NT$418.75
+29.6%
11.7%NT$460.00NT$340.00n/a4
Nov ’25NT$305.00
NT$451.25
+48.0%
5.2%NT$480.00NT$415.00n/a4
Oct ’25NT$405.00
NT$451.25
+11.4%
5.2%NT$480.00NT$415.00n/a4
Sep ’25NT$371.50
NT$451.25
+21.5%
5.2%NT$480.00NT$415.00n/a4
Aug ’25NT$364.00
NT$553.25
+52.0%
9.9%NT$630.00NT$480.00n/a4
Jul ’25NT$450.00
NT$553.25
+22.9%
9.9%NT$630.00NT$480.00n/a4
Jun ’25NT$500.00
NT$515.75
+3.2%
7.4%NT$570.00NT$480.00n/a4
May ’25NT$433.00
NT$431.60
-0.3%
25.2%NT$520.00NT$218.00n/a5
Apr ’25NT$363.00
NT$372.00
+2.5%
32.9%NT$520.00NT$218.00n/a4
Mar ’25NT$292.50
NT$324.00
+10.8%
35.8%NT$520.00NT$218.00n/a4
Feb ’25NT$238.50
NT$341.67
+43.3%
37.8%NT$520.00NT$218.00n/a3
Jan ’25NT$223.00
NT$341.67
+53.2%
37.8%NT$520.00NT$218.00n/a3
Dec ’24NT$247.00
NT$424.50
+71.9%
17.1%NT$520.00NT$336.00n/a4
Nov ’24NT$211.50
NT$424.50
+100.7%
17.1%NT$520.00NT$336.00NT$305.004
Oct ’24NT$296.50
NT$475.00
+60.2%
19.0%NT$600.00NT$376.00NT$405.004
Sep ’24NT$309.50
NT$475.00
+53.5%
19.0%NT$600.00NT$376.00NT$371.504
Aug ’24NT$339.50
NT$482.25
+42.0%
17.2%NT$600.00NT$404.00NT$364.004
Jul ’24NT$338.50
NT$362.00
+6.9%
11.6%NT$404.00NT$320.00NT$450.002

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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