ORIX Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: IX ($108.33) is trading below our estimate of fair value ($176.81)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for IX. This is calculated by dividing IX's market cap by their current earnings.
What is IX's PE Ratio?
PE Ratio	9.5x
Earnings	JP¥400.98b
Market Cap	JP¥3.83t

IX 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	3.1x
Enterprise Value/EBITDA	9.5x
PEG Ratio	1.6x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for IX 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	19x
VOYA Voya Financial	12x	14.5%	US$7.9b
APO Apollo Global Management	16.7x	6.3%	US$93.0b
GPN Global Payments	21.7x	10.9%	US$29.5b
CPAY Corpay	25.5x	15.5%	US$25.8b
IX ORIX	9.5x	5.8%	US$3.8t

Price-To-Earnings vs Peers: IX is good value based on its Price-To-Earnings Ratio (9.5x) compared to the peer average (19x).

Price to Earnings Ratio vs Industry

How does IX's PE Ratio compare vs other companies in the US Diversified Financial Industry?

3 Companies	Price / Earnings	Estimated Growth	Market Cap
FOA Finance of America Companies	1.4x	-139.5%	US$434.82m
PMIR PMI Group	1.2x	n/a	US$6.80m
ACGX Alliance Creative Group	1.6x	n/a	US$351.41k

No more companies available in this PE range

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: IX is good value based on its Price-To-Earnings Ratio (9.5x) compared to the US Diversified Financial industry average (17.4x).

Price to Earnings Ratio vs Fair Ratio

What is IX'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.

IX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	9.5x
Fair PE Ratio	18.2x

Price-To-Earnings vs Fair Ratio: IX is good value based on its Price-To-Earnings Ratio (9.5x) compared to the estimated Fair Price-To-Earnings Ratio (18.2x).

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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