Hitachi, Ltd.

Japan Country flag Japan
Sector: Electronic Equipment
Ticker: 6501
ISIN: JP3788600009
Factsheet Factsheet

Market multiple valuation of Hitachi, Ltd. ( 6501 | JPN)

The most common multiple used in the valuation of stocks is the P/Earnings NTM multiple (Price to Earnings). P/E relates the current share price with the market expectations in terms of Earnings Per Share. This multiple is used to compare a company's market value with its earnings. A company with a high P/Earnings NTM is considered to be overvalued; a company with a low P/Earnings NTM is considered to be undervalued.
The P/Earnings NTM ratio of Hitachi, Ltd. is higher than the median of its peer group: around 20.00. The company valuation of Hitachi, Ltd. according to these metrics is above the market valuation of its peer group.
The P/Earnings NTM ratio of Hitachi, Ltd. is significantly higher than the average of its sector (Electronic Equipment): 16.52. The company valuation of Hitachi, Ltd. according to these metrics is way above the market valuation of its sector.
The P/Earnings NTM ratio of Hitachi, Ltd. is significantly higher than its historical 5-year average: 11.2. The (current) company valuation of Hitachi, Ltd. is therefore way above its valuation average over the last five years.

Valuation
P/E Last P/E (e) 2024P/E NTM
Hitachi, Ltd.Free trialFree trialFree trial
International PeersFree trialFree trialFree trial
Electronic Equipment14.7316.1416.52
NIKKEI 22515.9113.0713.07
Japan14.1514.7414.60
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Beta (Ref: NIKKEI 225)
Levered betaUnlevered beta
1-Year1.070.98
2-Year1.111.02
3-Year1.050.96
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Stock Perf excl. Dividends (in JPY)
6501NIKKEI 225Rel. Perf.
Year-to-Date35.2%21.8%13.4%
1-Week0.5%1.9%-1.4%
1-Month8.1%3.9%4.2%
1-Year92.7%48.4%44.4%
3-Year154.9%39.7%115.2%
5-Year288.4%90.7%197.8%
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International Peers - Hitachi, Ltd.
Company NameCtryMarket
Cap.
last (mUSD)
Hitachi, Ltd.JPN84 171
International Peers Median1.05
Sumitomo Heavy Industri...JPN3 849
Hitachi Construction Ma...JPN6 383
Siemens AGDEU151 387
Roper Technologies Inc.USA59 604
Itochu Techno-Solutions...JPNN/A
GPRV Analysis
Hitachi, Ltd.
Intl. Peers
U.S Patents No. 7,882,001 & 8,082,201
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Net Sales Chart
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Quotes Chart

1-Year Rebased Stock Chart

  • Hitachi, Ltd.
  • NIKKEI 225
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Multiples charts provide an effective way to quickly analyze a company's valuation over a period of time, and compare it against the valuation of another company, a personal list, or a market index.

About Market Multiples

Many methods can be used to value a company. In reality, business valuation is often a combination of these different approaches. One of the most widely used quantitative methods is the market multiples method. The market valuation is utilized generally as a primary market input, to provide an objective starting point for the valuation. Put simply, this method multiplies the sales or profits of a business by an industry averaged multiplier to calculate the Market Value of the business.
Current multiples include:
- Historical multiples based on standardized financials for the last completed fiscal period: Last, Last Twelve Months (LTM);
- Forward multiples based on consensus estimates for the current fiscal period and next ones: Next Twelve Months (NTM), FY0, FY1.
Current multiples based on per-share metrics (such as earnings per share or book value per share) are calculated using the last closing price, while current multiples based on company-level metrics (such as net sales, EBIT or EBITDA) are calculated using the current market cap or EV (Enterprise Value).