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Mitsubishi Heavy Industries Ltd
TSE:7011

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Mitsubishi Heavy Industries Ltd
TSE:7011
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Price: 4 586 JPY -0.63% Market Closed
Market Cap: ¥15.5T

EV/FCFF

27.3
Current
15%
More Expensive
vs 3-y average of 23.8

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
27.3
=
Enterprise Value
¥15.9T
/
Free Cash Flow to Firm
¥562.9B

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
27.3
=
Enterprise Value
¥15.9T
/
Free Cash Flow to Firm
¥562.9B

Valuation Scenarios

Mitsubishi Heavy Industries Ltd is trading above its 3-year average

If EV/FCFF returns to its 3-Year Average (23.8), the stock would be worth ¥4 002.95 (13% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-84%
Maximum Upside
No Upside Scenarios
Average Downside
35%
Scenario EV/FCFF Value Implied Price Upside/Downside
Current Multiple 27.3 ¥4 586
0%
3-Year Average 23.8 ¥4 002.95
-13%
5-Year Average 4.4 ¥739.88
-84%
Industry Average 22.2 ¥3 725.29
-19%
Country Average 20.9 ¥3 502.73
-24%

Forward EV/FCFF
Today’s price vs future free cash flow to firm

Not enough data available to calculate forward EV/FCFF

Peer Comparison

All Multiples
EV/FCFF
P/E
All Countries
Close
Market Cap EV/FCFF P/E
JP
Mitsubishi Heavy Industries Ltd
TSE:7011
15.4T JPY 27.3 54.9
JP
Fujitec Co Ltd
TSE:6406
2 720 795.8T JPY 27.7 0
JP
Ishii Iron Works Co Ltd
TSE:6362
304.2T JPY 326 434.3 363 670.8
JP
Star Micronics Co Ltd
TSE:7718
48T JPY -8.8 29.8
US
Parker-Hannifin Corp
NYSE:PH
114.8B USD 35.9 31.9
JP
Freund Corp
TSE:6312
16.9T JPY 9 705.6 8 494.3
SE
Atlas Copco AB
STO:ATCO A
848.5B SEK 32.7 32.1
US
Illinois Tool Works Inc
NYSE:ITW
74.5B USD 30 24.3
US
Barnes Group Inc
NYSE:B
65.9B USD 16.4 13.1
SE
Sandvik AB
STO:SAND
480.6B SEK 27.2 32.4
JP
Fanuc Corp
TSE:6954
6.4T JPY 24.4 38.2

Market Distribution

In line with most companies in Japan
Percentile
64rd
Based on 3 767 companies
64rd percentile
27.3
Low
0 — 13.6
Typical Range
13.6 — 32.2
High
32.2 —
Distribution Statistics
Japan
Min 0
30th Percentile 13.6
Median 20.9
70th Percentile 32.2
Max 571 930 627.1

Mitsubishi Heavy Industries Ltd
Glance View

In the vibrant tapestry of Japan’s industrial landscape, Mitsubishi Heavy Industries Ltd. (MHI) stands as a formidable player with a storied legacy spanning over a century. Established in 1884, MHI has evolved from its origins as a shipbuilding powerhouse into a multifaceted conglomerate at the heart of modern technological advancement. Today, its operations are staggeringly diverse, encompassing sectors such as aerospace, defense, energy, machinery, and environment-related products. By leveraging its engineering prowess, MHI crafts complex machinery that powers economies—ranging from jet engines and defense equipment to state-of-the-art power generation systems. The company's commitment to heavy machinery and high-performance engineering solutions grounds its business model, creating cutting-edge technologies that underpin critical infrastructure globally. Central to MHI’s profitability is its strategy of integrating advanced engineering and production efficiencies to meet the demands of various industries worldwide. The company’s aerospace division partners with leading aircraft manufacturers, contributing key components that soar through the skies. Meanwhile, its energy systems arm is pivotal in developing sustainable power solutions, offering nuclear, wind, and gas turbine technologies that address the urgent need for cleaner energy. With these capabilities, MHI secures substantial contracts and drives revenue through a blend of large-scale projects and long-term service agreements, ensuring a steady inflow of capital. By continuously adapting to global trends, such as digital transformation and the push for decarbonization, Mitsubishi Heavy Industries not only maintains its historical strength but also positions itself at the forefront of innovation and sustainable progress.

Intrinsic Value
1 931.03 JPY
Overvaluation 58%
Intrinsic Value
Price ¥4 586
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