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Kobe Steel Ltd
TSE:5406

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Kobe Steel Ltd
TSE:5406
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Price: 1 941 JPY 0.75% Market Closed
Market Cap: ¥769.3B

EV/GP

2.9
Current
6%
More Expensive
vs 3-y average of 2.8

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
2.9
=
Enterprise Value
¥1.3T
/
Gross Profit
¥400.2B

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
2.9
=
Enterprise Value
¥1.3T
/
Gross Profit
¥400.2B

Valuation Scenarios

Kobe Steel Ltd is trading above its 3-year average

If EV/GP returns to its 3-Year Average (2.8), the stock would be worth ¥1 828.64 (6% downside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-6%
Maximum Upside
+61%
Average Upside
19%
Scenario EV/GP Value Implied Price Upside/Downside
Current Multiple 2.9 ¥1 941
0%
3-Year Average 2.8 ¥1 828.64
-6%
5-Year Average 2.8 ¥1 833.89
-6%
Industry Average 4.7 ¥3 116.16
+61%
Country Average 3.7 ¥2 468.84
+27%

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 Distribution

In line with most companies in Japan
Percentile
37th
Based on 4 798 companies
37th percentile
2.9
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

Kobe Steel Ltd
Glance View

Market Cap
769.3B JPY
Industry
Metals & Mining

Kobe Steel Ltd., a venerable name in the metallurgical world, stands as a testament to Japan's industrial prowess. Founded in 1905, the company has its roots deeply embedded in the production of high-quality steel, serving as a backbone for various sectors such as automotive, shipbuilding, and infrastructure. Over the decades, the steelmaker diversified its operations, branching into the manufacturing of aluminum, copper, and industrial machinery. This diversification has allowed Kobe Steel to remain resilient and adaptive in a highly competitive market. Its product portfolio, which includes everything from steel and aluminum plates to heavy-duty construction machinery, caters to a wide range of industries, enabling the company to tap into multiple revenue streams and reducing the risk inherent in relying on a single commodity. The success of Kobe Steel is largely anchored in its strategic focus on innovation and technological advancement. The company strives to meet the bespoke needs of its clients by offering tailored solutions, often collaborating closely with major automotive and aircraft manufacturers to ensure precision in product specifications and performance. Further, the company actively invests in research and development, propelling itself forward in areas like automotive weight reduction and energy-efficient systems. By doing so, Kobe Steel not only fortifies its market position but also aligns itself with global trends toward sustainability and eco-efficiency. This combination of broad industrial engagement and unwavering commitment to innovation is how Kobe Steel maintains its financial health and sustains its growth trajectory.

Intrinsic Value
5 637.4 JPY
Undervaluation 66%
Intrinsic Value
Price ¥1 941
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