Nippon Steel Corporation

OTCPK:NPSC.Y Stock Report

Market Cap: US$20.9b

Nippon Steel Valuation

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

Below Fair Value: NPSC.Y ($6.73) is trading below our estimate of fair value ($11.37)

Significantly Below Fair Value: NPSC.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 NPSC.Y?

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

The above table shows the Price to Earnings ratio for NPSC.Y. This is calculated by dividing NPSC.Y's market cap by their current earnings.
What is NPSC.Y's PE Ratio?
PE Ratio6.6x
EarningsJP¥492.48b
Market CapJP¥3.23t

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for NPSC.Y vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.6x
STLD Steel Dynamics
12.6x0.2%US$21.9b
RS Reliance
16.8x-3.4%US$17.3b
NUE Nucor
14.3x9.8%US$35.7b
ATI ATI
22.8x16.6%US$8.5b
NPSC.Y Nippon Steel
6.6x10.2%US$3.2t

Price-To-Earnings vs Peers: NPSC.Y is good value based on its Price-To-Earnings Ratio (6.6x) compared to the peer average (16.6x).

Price to Earnings Ratio vs Industry

How does NPSC.Y's PE Ratio compare vs other companies in the US Metals and Mining Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
VITF.F Victoria Gold
2.1xn/aUS$23.43m
BMXI Brookmount Explorations
0.7xn/aUS$5.00m
RMRI Rocky Mountain Industrials
0.9xn/aUS$1.76m
ZCRM.F Zincore Metals
0.5xn/aUS$852.33k
NPSC.Y 6.6xIndustry Avg. 19.3xNo. of Companies8PE01224364860+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: NPSC.Y is good value based on its Price-To-Earnings Ratio (6.6x) compared to the US Metals and Mining industry average (19.3x).

Price to Earnings Ratio vs Fair Ratio

What is NPSC.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.

NPSC.Y PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.6x
Fair PE Ratio20.6x

Price-To-Earnings vs Fair Ratio: NPSC.Y is good value based on its Price-To-Earnings Ratio (6.6x) compared to the estimated Fair Price-To-Earnings Ratio (20.6x).

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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