As of July 17, 2025, Yodogawa Steel Works Ltd's estimated intrinsic value ranges from $720.02 to $1908.57 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $1099.34 | -4.6% |
| Discounted Cash Flow (5Y) | $720.02 | -37.5% |
| Dividend Discount Model (Multi-Stage) | $1908.57 | +65.7% |
| Dividend Discount Model (Stable) | $1863.14 | +61.7% |
| Earnings Power Value | $1096.04 | -4.9% |
Is Yodogawa Steel Works Ltd (5451.T) undervalued or overvalued?
With the current market price at $1152.00, the stock appears to be moderately undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Yodogawa Steel Works Ltd's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.72 | 0.75 |
| Cost of equity | 5.8% | 7.8% |
| Cost of debt | 4.0% | 4.7% |
| Tax rate | 27.9% | 28.8% |
| Debt/Equity ratio | 0.01 | 0.01 |
| After-tax WACC | 5.8% | 7.7% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $720 | $54,139M | 75.0% |
| 10-Year Growth | $1,099 | $112,731M | 72.6% |
| 5-Year EBITDA | $1,052 | $105,381M | 87.1% |
| 10-Year EBITDA | $1,116 | $115,351M | 73.2% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $7,416M |
| Discount Rate (WACC) | 7.7% - 5.8% |
| Enterprise Value | $95,976M - $128,467M |
| Net Debt | $(57,079)M |
| Equity Value | $153,055M - $185,546M |
| Outstanding Shares | 154M |
| Fair Value | $991 - $1,201 |
| Selected Fair Value | $1096.04 |
| Metric | Value |
|---|---|
| Market Capitalization | $177945M |
| Enterprise Value | $120866M |
| Trailing P/E | 13.18 |
| Forward P/E | 11.43 |
| Trailing EV/EBITDA | 5.45 |
| Current Dividend Yield | 405.03% |
| Dividend Growth Rate (5Y) | 34.17% |
| Debt-to-Equity Ratio | 0.01 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $329.80 |
| Discounted Cash Flow (5Y) | 25% | $180.00 |
| Dividend Discount Model (Multi-Stage) | 20% | $381.71 |
| Dividend Discount Model (Stable) | 15% | $279.47 |
| Earnings Power Value | 10% | $109.60 |
| Weighted Average | 100% | $1280.59 |
Based on our comprehensive valuation analysis, Yodogawa Steel Works Ltd's intrinsic value is $1280.59, which is approximately 11.2% above the current market price of $1152.00.
Key investment considerations:
Given these factors, we believe Yodogawa Steel Works Ltd is currently moderately undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.