Subaru (7270.T)
Consumer · Tokyo · Japan
Fundamentals
Valuation and ratings
Subaru trades at ¥2,518.50, which is 54% below the ¥3,884.18 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 38 out of 100, which is little in the way of a 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 19.9 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 Subaru
Subaru Corporation manufactures and sells automobiles and aerospace products in Japan, Asia, North America, Europe, and Internationally. The company operates through three segments: Automotive, Aerospace, and Others. It manufactures, sells, and repairs automobiles and the parts; aircraft, space-related equipment, and the parts; and rents real estate properties. In addition, the company engages in the lease of production tools such as dies, network devices, and terminal equipment, as well as for real estate such as stores, company housing, and warehouses for the automotive business. It is also involved in manufacture and sale of automotive parts; and leasing of land and equipment activities. The company was formerly known as Fuji Heavy Industries Ltd. and changed its name to Subaru Corporation in April 2017. Subaru Corporation was founded in 1917 and is headquartered in Shibuya, Japan.
7270.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 Subaru (7270.T) undervalued?
Against our discounted cash flow estimate of ¥3,884.18, 7270.T at ¥2,518.50 is 54% 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 7270.T's P/E ratio?
7270.T trades at 19.9 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.
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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.