Denso Corp
TSE:6902

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Denso Corp
TSE:6902
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Price: 1 926 JPY 0.44%
Market Cap: ¥5.6T

EV/EBIT

9.5
Current
31%
Cheaper
vs 3-y median of 13.9

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
9.5
=
Enterprise Value
¥5.5T
/
EBIT
¥493.3B

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
9.5
=
Enterprise Value
¥5.5T
/
EBIT
¥493.3B

Valuation Scenarios

Denso Corp is trading below its 3-year average

If EV/EBIT returns to its 3-Year Average (13.9), the stock would be worth ¥2 811.22 (46% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+46%
Average Upside
26%
Scenario EV/EBIT Value Implied Price Upside/Downside
Current Multiple 9.5 ¥1 926
0%
3-Year Average 13.9 ¥2 811.22
+46%
5-Year Average 10.2 ¥2 075.38
+8%
Industry Average 10.2 ¥2 071.27
+8%
Country Average 13.6 ¥2 764.31
+44%

Forward EV/EBIT
Today’s price vs future ebit

Not enough data available to calculate forward EV/EBIT

Peer Comparison

All Multiples
EV/EBIT
P/E
All Countries
Close

Market Distribution

Lower than 72% of companies in Japan
Percentile
28th
Based on 4 801 companies
28th percentile
9.5
Low
0.1 — 9.8
Typical Range
9.8 — 18.1
High
18.1 —
Distribution Statistics
Japan
Min 0.1
30th Percentile 9.8
Median 13.6
70th Percentile 18.1
Max 414 821 439

Denso Corp
Glance View

Market Cap
5.6T JPY
Industry
Auto Components

Denso Corporation, a stalwart in the automotive industry, traces its roots back to 1949 when it spun off from Toyota Motor Corporation with a vision to innovate and revolutionize automobile components manufacturing. With headquarters located in Kariya, Japan, Denso quietly became a global powerhouse, primarily crafting advanced technologies and components essential for nearly every automaker's lineup. Its diverse range of products includes powertrain systems, thermal systems, electronic systems, and safety systems that enhance vehicle performance, efficiency, and safety. Through continuous innovation and investment in research and development, Denso efficiently adapts to the rapidly changing automotive landscape, focusing on areas such as electrification, connectivity, and automation. This adaptability fosters a symbiotic relationship with leading automotive players and cements Denso’s pivotal role in the mobility revolution. Financially, Denso thrives by integrating high-quality manufacturing and cutting-edge technological insights, ensuring a steady stream of revenue from its expansive portfolio. The strategic emphasis on robust partnerships with automotive giants and the diversification of product offerings has cemented its revenue streams. Denso's approach ensures an operational focus beyond mere component manufacturing, wading into software solutions pivotal for future mobility trends such as autonomous driving and connected vehicles. As the automotive world navigates toward sustainability, Denso’s investments and innovations in electrification and hybrid systems not only demonstrate a commitment to environmental stewardship but also signify a strategic pursuit of profitable growth. Its ability to maintain operational excellence while embracing radical changes in vehicle technology has allowed Denso to not only survive but thrive, continuing to drive forward the future of mobility.

Intrinsic Value
2 645.38 JPY
Undervaluation 27%
Intrinsic Value
Price ¥1 926
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