Mitsubishi Chemical Group Valuation

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

MTLH.Y ($26.7) is trading below our estimate of [[fair value]] ($52.09)

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

Below Fair Value: MTLH.Y ($26.7) is trading below our estimate of fair value ($52.09)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for MTLH.Y. This is calculated by dividing MTLH.Y's market cap by their current earnings.
What is MTLH.Y's PE Ratio?
PE Ratio	12.8x
Earnings	JP¥93.31b
Market Cap	JP¥1.19t

MTLH.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	0.8x
Enterprise Value/EBITDA	6.5x
PEG Ratio	0.7x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MTLH.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	23.7x
CC Chemours	38x	n/a	US$2.9b
AXTA Axalta Coating Systems	27.1x	19.1%	US$8.9b
MOS Mosaic	22.5x	26.9%	US$8.3b
CE Celanese	7.4x	15.2%	US$8.1b
MTLH.Y Mitsubishi Chemical Group	12.8x	18.4%	US$1.2t

Price-To-Earnings vs Peers: MTLH.Y is good value based on its Price-To-Earnings Ratio (12.8x) compared to the peer average (23.7x).

Price to Earnings Ratio vs Industry

How does MTLH.Y's PE Ratio compare vs other companies in the US Chemicals Industry?

7 Companies	Price / Earnings	Estimated Growth	Market Cap
FFHL Fuwei Films (Holdings)	2.8x	n/a	US$27.11m
BSLK Bolt Projects Holdings	0.07x	n/a	US$10.01m
BON Bon Natural Life	2.2x	n/a	US$5.72m
GSPI Green Star Products	1.5x	n/a	US$1.79m

7 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: MTLH.Y is good value based on its Price-To-Earnings Ratio (12.8x) compared to the US Chemicals industry average (23.9x).

Price to Earnings Ratio vs Fair Ratio

What is MTLH.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.

MTLH.Y PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12.8x
Fair PE Ratio	24.7x

Price-To-Earnings vs Fair Ratio: MTLH.Y is good value based on its Price-To-Earnings Ratio (12.8x) compared to the estimated Fair Price-To-Earnings Ratio (24.7x).

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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