Furukawa Electric Co Ltd

Stock Price

41.60 EUR

Fair Value

42.39 EUR


Benchmarks	Ticker	Full Ticker
Mitsubishi Electric Corporation	6503	TSE:6503
Sumitomo Corporation	8053	TSE:8053
Jiangsu Zhongtian Technology Co., Ltd.	600522	SHSE:600522
Prysmian S.p.A.	PRY	BIT:PRY
Onamba Co., Ltd.	5816	TSE:5816
Furukawa Electric Co., Ltd.	FKA	DB:FKA
-	-	-

Multiples Valuation: EV / EBIT

Stock Price

41.60 EUR

Fair Value

42.39 EUR

Upside

-1.9%

LTM EBIT Multiple

Proj EBIT Multiple

Fair Value

Benchmark Editor


Select LTM EBIT Multiple

	Benchmark Companies
	6503	8053	600522	PRY	5816	FKA
	TSE:6503	TSE:8053	SHSE:600522	BIT:PRY	TSE:5816	DB:FKA
Historical EBIT Growth
5Y CAGR	7.7%	15.6%	7.2%	15.2%	20.6%	14.9%
3Y CAGR	14.4%	11.1%	4.4%	30.9%	25.6%	60.3%
Latest Twelve Months	21.0%	-2.4%	-5.5%	19.9%	10.6%	321.6%

Historical EBIT Profit Margin
5 Year Average Margin	5.8%	4.7%	7.0%	5.5%	4.2%	1.6%
Prior Fiscal Year	5.9%	6.0%	6.8%	6.8%	5.5%	1.1%
Latest Fiscal Year	6.8%	5.6%	5.9%	7.2%	4.9%	3.9%
Latest Twelve Months	6.8%	5.6%	5.7%	6.8%	5.3%	3.9%

Current Trading Multiples
EV / LTM Revenue	1.04x	0.61x	0.73x	1.21x	0.10x	0.57x
EV / LTM EBITDA	10.8x	8.2x	8.6x	13.4x	1.4x	7.7x
EV / LTM EBIT	15.2x	11.0x	12.7x	17.7x	2.0x	14.5x


	Low	Mid	High

Benchmark EV / LTM EBIT	2.0x	12.7x	17.7x
Historical EV / LTM EBIT	14.5x	27.0x	45.7x

Selected EV / LTM EBIT	13.3x	14.0x	14.7x
(x) LTM EBIT	47,098	47,098	47,098
(=) Implied Enterprise Value	627,991	661,043	694,095
(-) Non-shareholder Claims *	(159,759)	(159,759)	(159,759)
(=) Equity Value	468,232	501,284	534,336
(/) Shares Outstanding	70.5	70.5	70.5
Implied Value Range	6,644.11	7,113.11	7,582.11
FX Rate: JPY/EUR	171.5	171.5	171.5		Market Price
Implied Value Range (Trading Cur)	38.74	41.47	44.20		43.20
Upside / (Downside)	-10.3%	-4.0%	2.3%

Supporting Calculations

Equity Waterfall

Financials

Historical Multiples


Equity Waterfall

	Benchmark Companies
(in millions)	6503	8053	600522	PRY	5816	FKA

Enterprise Value	5,841,063	4,492,403	35,736	21,936	4,732	681,955
(+) Cash & Short Term Investments	757,331	589,905	15,753	583	6,536	66,780
(+) Investments & Other	324,766	3,448,121	2,885	261	2,897	123,985
(-) Debt	(360,661)	(3,783,638)	(5,008)	(5,497)	(2,098)	(318,628)
(-) Other Liabilities	(126,688)	(237,096)	(814)	(200)	(429)	(31,896)
(-) Preferred Stock	0	0	0	0	0	0
(-) Other	0	0	0	0	0	0
Value of Common Equity	6,435,811	4,509,695	48,551	17,083	11,638	522,196
(/) Shares Outstanding	2,065.4	1,210.0	3,397.6	286.7	12.2	70.5
Implied Stock Price	3,116.00	3,727.00	14.29	59.58	955.00	7,409.84
FX Conversion Rate to Trading Currency	1.00	1.00	1.00	1.00	1.00	171.52
Implied Stock Price (Trading Cur)	3,116.00	3,727.00	14.29	59.58	955.00	43.20

Trading Currency	JPY	JPY	CNY	EUR	JPY	EUR
FX Rate to Reporting Currency	1.00	1.00	1.00	1.00	1.00	171.52

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