Bridgestone (5108.T)
Consumer · Tokyo · Japan
Fundamentals
Valuation and ratings
Bridgestone trades at ¥3,729.00, which is 23% below the ¥4,589.20 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 54 out of 100, which is a moat, but not a deep one. 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 29.9 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 Bridgestone
Bridgestone Corporation, together with its subsidiaries, manufactures and sells tires and rubber products in Japan, China, India, the Asia Pacific, the United States, the Americas, Europe, the Middle East, and Africa. The company offers passenger car, motorcycle, trucks, buses, construction and mining vehicles, agricultural machinery, and aircraft tires; automotive components; automotive maintenance and repair services; synthetic rubber; retreading materials; and raw materials for tires. It also provides hoses, rubber crawler MT pads, resin piping, seismic isolation rubber, rubber bearings for bridges, and block-type rubber-coated chain bridge collapse prevention device. In addition, the company offers golf equipment comprising golf balls and golf clubs; bicycles and power-assisted bicycles; and finance services, including lending, factoring and entrusted processing of accounting and payroll calculation. Further, it provides retail and service, fleet, aviation, industrial and construction machinery, agriculture mobility, mining, and building solutions. Additionally, it engages in shipping and warehousing activities. Bridgestone Corporation was incorporated in 1931 and is headquartered in Chuo, Japan.
5108.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 Bridgestone (5108.T) undervalued?
Against our discounted cash flow estimate of ¥4,589.20, 5108.T at ¥3,729.00 is 23% 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 5108.T's P/E ratio?
5108.T trades at 29.9 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.
The full research page for 5108.T, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
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.