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Otsuka Holdings Co Ltd
TSE:4578

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Otsuka Holdings Co Ltd
TSE:4578
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Price: 11 400 JPY 1.97% Market Closed
Market Cap: ¥6.2T

EV/GP

3.2
Current
47%
More Expensive
vs 3-y average of 2.2

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
3.2
=
Enterprise Value
¥5.1T
/
Gross Profit
¥1.8T

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
3.2
=
Enterprise Value
¥5.1T
/
Gross Profit
¥1.8T

Valuation Scenarios

Otsuka Holdings Co Ltd is trading above its 3-year average

If EV/GP returns to its 3-Year Average (2.2), the stock would be worth ¥7 753.08 (32% downside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-34%
Maximum Upside
+18%
Average Downside
10%
Scenario EV/GP Value Implied Price Upside/Downside
Current Multiple 3.2 ¥11 400
0%
3-Year Average 2.2 ¥7 753.08
-32%
5-Year Average 2.1 ¥7 470.67
-34%
Industry Average 3.5 ¥12 613.22
+11%
Country Average 3.7 ¥13 408.48
+18%

Forward EV/GP
Today’s price vs future gross profit

Not enough data available to calculate forward EV/GP

Peer Comparison

All Multiples
EV/GP
P/E
All Countries
Close
Market Cap EV/GP P/E
JP
Otsuka Holdings Co Ltd
TSE:4578
6T JPY 3.2 16.6
US
Eli Lilly and Co
NYSE:LLY
804.2B USD 16.9 42.8
US
Johnson & Johnson
NYSE:JNJ
547.4B USD 8.8 26.3
CH
Roche Holding AG
SIX:ROG
248.4B CHF 6.3 20.1
UK
AstraZeneca PLC
LSE:AZN
216.3B GBP 6.4 28
US
Merck & Co Inc
NYSE:MRK
274.6B USD 5.7 14.8
CH
Novartis AG
SIX:NOVN
216.3B CHF 7.4 20.7
IE
Endo International PLC
LSE:0Y5F
244.4B USD 160.7 -83.6
DK
Novo Nordisk A/S
CSE:NOVO B
1.1T DKK 5.2 11.8
US
Pfizer Inc
NYSE:PFE
149.3B USD 4.2 19.5
US
Bristol-Myers Squibb Co
NYSE:BMY
115.9B USD 4.4 17.3
P/E Multiple
Earnings Growth PEG
JP
Otsuka Holdings Co Ltd
TSE:4578
Average P/E: 21.8
16.6
2%
8.3
US
Eli Lilly and Co
NYSE:LLY
42.8
32%
1.3
US
Johnson & Johnson
NYSE:JNJ
26.3
8%
3.3
CH
Roche Holding AG
SIX:ROG
20.1
14%
1.4
UK
AstraZeneca PLC
LSE:AZN
28
25%
1.1
US
Merck & Co Inc
NYSE:MRK
14.8
14%
1.1
CH
Novartis AG
SIX:NOVN
20.7
14%
1.5
IE
E
Endo International PLC
LSE:0Y5F
Negative Multiple: -83.6 N/A N/A
DK
Novo Nordisk A/S
CSE:NOVO B
11.8
0%
N/A
US
Pfizer Inc
NYSE:PFE
19.5
22%
0.9
US
Bristol-Myers Squibb Co
NYSE:BMY
17.3
16%
1.1

Market Distribution

In line with most companies in Japan
Percentile
42st
Based on 4 798 companies
42st percentile
3.2
Low
0.1 — 2.6
Typical Range
2.6 — 5.9
High
5.9 —
Distribution Statistics
Japan
Min 0.1
30th Percentile 2.6
Median 3.7
70th Percentile 5.9
Max 45 735 393.8

Otsuka Holdings Co Ltd
Glance View

Otsuka Holdings Co. Ltd. began its journey in 1921 as a small chemicals company in Naruto, Japan. Its evolution from those humble beginnings to a global pharmaceutical giant is marked by its relentless commitment to innovation and expansion. Today, Otsuka operates as a holding company, orchestrating a diversified portfolio across pharmaceuticals, nutraceuticals, consumer products, and medical devices. It has cultivated a unique philosophy: a balance between large-scale operations and niche markets. The company’s pharmaceutical sector, its most significant revenue contributor, is driven largely by advancements in CNS (central nervous system) treatments and nephrology. The success of its flagship product, Abilify, a leading antipsychotic, underscores Otsuka’s ability to combine market demands with cutting-edge research to sustain growth and profitability. In parallel, Otsuka nurtures its nutraceuticals wing, embodied by its signature Pocari Sweat and SoyJoy brands. These products epitomize the company’s strategy of creating and expanding niche markets, offering health-oriented products that resonate with evolving consumer health trends. This diversification into consumer products and nutraceuticals not only complements its pharmaceutical endeavors but also mitigates risks by tapping into varied revenue streams. By focusing on health and wellness broadly, Otsuka Holdings strategically positions itself to navigate the complexities of the global healthcare market, ensuring a resilient business model. Through this multifaceted approach, Otsuka sustains its growth, reaffirming its legacy as a dynamic and globally influential company.

Intrinsic Value
8 977.23 JPY
Overvaluation 21%
Intrinsic Value
Price ¥11 400
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