Sumitomo Valuation

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

SSUM.Y ($21.02) is trading below our estimate of [[fair value]] ($23.64)

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

Below Fair Value: SSUM.Y ($21.02) is trading below our estimate of fair value ($23.64)

Significantly Below Fair Value: SSUM.Y is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SSUM.Y?

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

The above table shows the Price to Earnings ratio for SSUM.Y. This is calculated by dividing SSUM.Y's market cap by their current earnings.
What is SSUM.Y's PE Ratio?
PE Ratio	11.2x
Earnings	JP¥355.22b
Market Cap	JP¥3.97t

SSUM.Y key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1x
Enterprise Value/EBITDA	13.4x
PEG Ratio	1.1x

Price to Earnings Ratio vs Peers

How does SSUM.Y's PE Ratio compare to its peers?

The above table shows the PE ratio for SSUM.Y vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	28x
WSO Watsco	41.3x	11.6%	US$20.0b
FERG Ferguson Enterprises	23.4x	8.8%	US$40.5b
AER AerCap Holdings	7x	-9.6%	US$17.7b
FAST Fastenal	40.5x	7.6%	US$46.7b
SSUM.Y Sumitomo	11.2x	10.2%	US$4.0t

Price-To-Earnings vs Peers: SSUM.Y is good value based on its Price-To-Earnings Ratio (11.2x) compared to the peer average (27.2x).

Price to Earnings Ratio vs Industry

How does SSUM.Y's PE Ratio compare vs other companies in the US Trade Distributors Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap
BYU BAIYU Holdings	0.8x	n/a	US$9.09m

No more companies available in this PE range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: SSUM.Y is good value based on its Price-To-Earnings Ratio (11.2x) compared to the US Trade Distributors industry average (17x).

Price to Earnings Ratio vs Fair Ratio

What is SSUM.Y'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.

SSUM.Y PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	11.2x
Fair PE Ratio	24.5x

Price-To-Earnings vs Fair Ratio: SSUM.Y is good value based on its Price-To-Earnings Ratio (11.2x) compared to the estimated Fair Price-To-Earnings Ratio (24.5x).

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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