Recruit Holdings Co., Ltd.

OTCPK:RCRR.F Stock Report

Market Cap: US$94.2b

Recruit Holdings Valuation

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

Below Fair Value: RCRR.F ($64.25) is trading above our estimate of fair value ($58.38)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RCRR.F?

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

The above table shows the Price to Earnings ratio for RCRR.F. This is calculated by dividing RCRR.F's market cap by their current earnings.
What is RCRR.F's PE Ratio?
PE Ratio40.2x
EarningsJP¥363.08b
Market CapJP¥14.59t

Price to Earnings Ratio vs Peers

How does RCRR.F's PE Ratio compare to its peers?

The above table shows the PE ratio for RCRR.F vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average35.5x
ADP Automatic Data Processing
32.3x6.5%US$124.3b
PAYX Paychex
30.6x6.3%US$52.0b
PAYC Paycom Software
27.4x2.4%US$12.9b
PCTY Paylocity Holding
51.6x14.9%US$11.4b
RCRR.F Recruit Holdings
40.2x9.6%US$14.6t

Price-To-Earnings vs Peers: RCRR.F is expensive based on its Price-To-Earnings Ratio (40.2x) compared to the peer average (35.5x).

Price to Earnings Ratio vs Industry

How does RCRR.F's PE Ratio compare vs other companies in the US Professional Services Industry?

10 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CNDT Conduent
1.4x-104.3%US$597.99m
CIH China Index Holdings
3.5xn/aUS$87.15m
ALJJ ALJ Regional Holdings
0.7xn/aUS$70.26m
STCN Steel Connect
3.1xn/aUS$62.85m
RCRR.F 40.2xIndustry Avg. 25.5xNo. of Companies13PE01632486480+
10 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RCRR.F is expensive based on its Price-To-Earnings Ratio (40.2x) compared to the US Professional Services industry average (25.5x).

Price to Earnings Ratio vs Fair Ratio

What is RCRR.F'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.

RCRR.F PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio40.2x
Fair PE Ratio46.1x

Price-To-Earnings vs Fair Ratio: RCRR.F is good value based on its Price-To-Earnings Ratio (40.2x) compared to the estimated Fair Price-To-Earnings Ratio (46.1x).

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 RCRR.F forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$64.25
US$64.48
+0.4%
15.6%US$81.37US$47.15n/a13
Nov ’25US$62.10
US$61.07
-1.7%
13.2%US$74.37US$45.01n/a13
Oct ’25US$62.20
US$64.33
+3.4%
11.9%US$76.54US$48.01n/a13
Sep ’25US$57.64
US$63.03
+9.3%
11.9%US$75.24US$47.20n/a14
Aug ’25US$58.00
US$57.24
-1.3%
13.2%US$69.84US$42.54n/a13
Jul ’25US$52.25
US$53.30
+2.0%
10.9%US$60.69US$41.49n/a13
Jun ’25US$49.12
US$49.27
+0.3%
14.3%US$58.50US$35.61n/a14
May ’25US$42.77
US$45.49
+6.4%
12.7%US$52.86US$34.59n/a14
Apr ’25US$44.99
US$44.78
-0.5%
13.1%US$52.86US$35.02n/a13
Mar ’25US$40.74
US$42.32
+3.9%
9.7%US$49.11US$35.17n/a13
Feb ’25US$40.51
US$40.80
+0.7%
13.5%US$50.13US$31.84n/a13
Jan ’25US$40.67
US$40.56
-0.3%
12.9%US$52.03US$33.04n/a13
Dec ’24US$37.80
US$37.01
-2.1%
17.7%US$47.43US$18.71n/a15
Nov ’24US$29.56
US$36.72
+24.2%
18.8%US$47.59US$18.77US$62.1015
Oct ’24US$31.87
US$36.97
+16.0%
19.0%US$48.08US$18.96US$62.2015
Sep ’24US$37.98
US$36.75
-3.3%
18.7%US$48.68US$19.20US$57.6415
Aug ’24US$33.37
US$37.29
+11.7%
18.7%US$48.55US$20.29US$58.0015
Jul ’24US$32.20
US$36.06
+12.0%
18.4%US$47.25US$19.75US$52.2515
Jun ’24US$30.63
US$35.90
+17.2%
18.2%US$47.66US$19.92US$49.1215
May ’24US$28.65
US$36.79
+28.4%
17.7%US$47.14US$20.95US$42.7715
Apr ’24US$27.93
US$38.98
+39.6%
18.5%US$49.71US$21.41US$44.9915
Mar ’24US$26.72
US$38.92
+45.7%
15.2%US$47.75US$25.71US$40.7415
Feb ’24US$33.05
US$43.16
+30.6%
18.5%US$57.58US$26.87US$40.5115
Jan ’24US$32.41
US$42.62
+31.5%
16.9%US$54.87US$25.61US$40.6715
Dec ’23US$31.72
US$43.25
+36.3%
16.6%US$55.43US$25.87US$37.8015
Nov ’23US$31.00
US$40.04
+29.2%
16.8%US$50.44US$23.54US$29.5616

Analyst Forecast: Target price is less than 20% higher than the current share price.

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