Komatsu Ltd
TSE:6301
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EV/EBIT
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.
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.
Valuation Scenarios
If EV/EBIT returns to its 3-Year Average (7.9), the stock would be worth ¥4 708.13 (32% downside from current price).
| Scenario | EV/EBIT Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 11.7 | ¥6 970 |
0%
|
| 3-Year Average | 7.9 | ¥4 708.13 |
-32%
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| 5-Year Average | 8.5 | ¥5 056.88 |
-27%
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| Industry Average | 14.6 | ¥8 667.81 |
+24%
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| Country Average | 13.6 | ¥8 104.2 |
+16%
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Forward EV/EBIT
Today’s price vs future ebit
| Today's Enterprise Value | EBIT | Forward EV/EBIT | ||
|---|---|---|---|---|
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¥7.7T
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/ |
Jan 2026
¥610.1B
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= |
|
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¥7.7T
|
/ |
Mar 2026
¥569.9B
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= |
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¥7.7T
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/ |
Mar 2027
¥689.4B
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= |
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¥7.7T
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/ |
Mar 2028
¥754.1B
|
= |
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¥7.7T
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/ |
Mar 2029
¥723.7B
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= |
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Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.
Peer Comparison
| Market Cap | EV/EBIT | P/E | ||||
|---|---|---|---|---|---|---|
| JP |
|
Komatsu Ltd
TSE:6301
|
6.3T JPY | 11.7 | 15.7 | |
| US |
|
Caterpillar Inc
NYSE:CAT
|
390.9B USD | 33.2 | 44 | |
| US |
|
Cummins Inc
NYSE:CMI
|
90.7B USD | 23.5 | 31.9 | |
| SE |
|
Volvo AB
STO:VOLV B
|
645B SEK | 14.3 | 18.7 | |
| US |
|
Paccar Inc
NASDAQ:PCAR
|
66.7B USD | 19.5 | 28.1 | |
| KR |
|
Hyundai Heavy Industries Co Ltd
KRX:329180
|
67.3T KRW | 31.5 | 45.8 | |
| US |
|
Westinghouse Air Brake Technologies Corp
NYSE:WAB
|
46B USD | 25.7 | 39.3 | |
| CN |
|
China CSSC Holdings Ltd
SSE:600150
|
274.5B CNY | 27.1 | 38.2 | |
| DE |
|
Daimler Truck Holding AG
XETRA:DTG
|
33.6B EUR | 14.8 | 17 | |
| JP |
|
Toyota Industries Corp
TSE:6201
|
6.2T JPY | 53.8 | 30.6 | |
| CN |
|
Weichai Power Co Ltd
SZSE:000338
|
243.8B CNY | 15.9 | 24.7 |
Market Distribution
| Min | 0.1 |
| 30th Percentile | 9.8 |
| Median | 13.6 |
| 70th Percentile | 18.1 |
| Max | 414 821 439 |
Other Multiples
Komatsu Ltd
Glance View
Komatsu Ltd., founded in Japan in 1921, has evolved from a small repair shop to a global titan in the field of heavy equipment and industrial machinery. Originally part of the Takeuchi Mining Company, Komatsu carved its own path by developing its machinery, gradually expanding its portfolio beyond mining equipment to include a comprehensive array of construction, forestry, and industrial equipment. The company’s commitment to innovation and quality has anchored its reputation, enabling it to traverse the turbulent economic landscapes of the 20th century and emerge as a leader in equipment manufacturing. Today, Komatsu operates globally, with manufacturing plants in multiple continents, offering a range of products such as hydraulic excavators, bulldozers, and forklifts. These machines are best known for their durability and technological advances, which frequently incorporate automation and sustainability-focused features. Revenue generation at Komatsu is multifaceted. Primarily, it stems from the sale of heavy machinery, which is used across varied sectors such as construction, mining, agriculture, and forestry. However, it's not just the large upfront sales that drive Komatsu's financial engine. The company has cultivated a robust after-sales service network that includes maintenance, repair services, and spare parts supply, establishing steady revenue streams that persist long after the initial sale. Furthermore, Komatsu invests heavily in research and development, reflecting a commitment to innovation that not only enhances product offerings but also creates additional value through revenue-sharing technologies like automated systems and IoT solutions embedded in their machinery. This diversified approach enables Komatsu to navigate the challenges of fluctuating market demands and economic conditions, maintaining its position as a pillar in the heavy machinery industry.