Japan Tobacco (2914.T)
Consumer · Tokyo · Japan
Fundamentals
Valuation and ratings
Japan Tobacco trades at ¥6,368.00, which is 70% below the ¥10,833.13 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 75 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 21.7 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Japan Tobacco
Japan Tobacco Inc., a tobacco company, engages in the manufacture and sale of tobacco products in Japan and internationally. It operates through two segments: Tobacco Business and Processed Food Business. It offers tobacco products, such as cigarettes, fine cut tobacco products, cigars, pipes, and hookah products. The company provides reduced-risk products, including heated tobacco, infused tobacco, e-vapor, traditional oral, and modern oral. Further, the company provides frozen and room-temperature products comprising frozen udon noodles, packed rice, and frozen okonomiyaki; and seasonings, including yeast extracts, assembled, kelp and seaweed, and oyster sauces. It offers its products under the Winston, Camel, Möbius, and LD brands. Japan Tobacco Inc. was founded in 1898 and is headquartered in Tokyo, Japan.
2914.T passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Japan Tobacco (2914.T) undervalued?
Against our discounted cash flow estimate of ¥10,833.13, 2914.T at ¥6,368.00 is 70% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is 2914.T's P/E ratio?
2914.T trades at 21.7 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.