Thinking about what to do next with Hankyu Hanshin Holdings stock? You are not alone. The company has been grabbing attention lately, especially after a modest YTD return of 7.2% and a substantial 35.0% gain over the past five years. But if you are scanning for quick momentum, it is worth noting the stock has barely budged in the last month, up just 0.7%, with a slight dip of 0.1% over the past week. This lack of near-term movement might feel underwhelming, but it can also signal shifting investor perceptions around growth potential or risk, particularly as markets digest recent transportation sector trends in Japan, including urban mobility upgrades and changing travel patterns.
If you are looking for undervalued gems, Hankyu Hanshin Holdings’ latest valuation score comes in at just 1 out of 6. That means, by classic measures, the stock appears undervalued in only a single category, which might surprise some investors riding the long-term gains. Does that mean the company is fairly priced, or that something is being missed?
Let us take a closer look at how this score was built. Here is a breakdown of the valuation checks you should know as you weigh your next move. We will also close with an even deeper approach to understanding what this number really means for investors like you.
Hankyu Hanshin Holdings scores just 1/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.
The Discounted Cash Flow (DCF) model estimates a company’s intrinsic value by projecting its future cash flows and discounting them back to today. This helps investors judge what the business is really worth, beyond market price swings.
For Hankyu Hanshin Holdings, the most recent Free Cash Flow (FCF) over the last twelve months was negative, at approximately ¥-38.6 Billion. Despite this, analysts expect the company to recover. They forecast Free Cash Flows of roughly ¥40.7 Billion in 2026 and up to about ¥59.4 Billion by 2035. Estimates through 2028 are provided directly by analysts. Projections for the subsequent years are extrapolated by Simply Wall St, indicating a steady upward trend in the company’s ability to generate cash.
Based on this model, Hankyu Hanshin Holdings’ estimated fair value is ¥2,603 per share. The DCF analysis finds that the stock trades at a 69.4% premium to this intrinsic value, meaning it is currently considered significantly overvalued according to cash flow projections.
Result: OVERVALUED
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Hankyu Hanshin Holdings.
Story Continues
9042 Discounted Cash Flow as at Sep 2025
Our Discounted Cash Flow (DCF) analysis suggests Hankyu Hanshin Holdings may be overvalued by 69.4%. Find undervalued stocks or create your own screener to find better value opportunities.
The Price-to-Earnings (PE) ratio is a widely used metric for valuing profitable companies, as it allows investors to assess how much the market is willing to pay for a company’s current earnings. For companies generating consistent profits like Hankyu Hanshin Holdings, the PE ratio provides a clear snapshot of market expectations in relation to actual earnings performance.
It is important to remember that what counts as a “fair” PE ratio depends on several factors. Two of the most important are anticipated growth and perceived risk. Companies expected to grow faster, or those considered less risky, tend to command higher PE ratios. Conversely, if a business faces significant risks or slow growth prospects, investors generally demand a lower PE multiple for compensation.
Currently, Hankyu Hanshin Holdings trades at a PE ratio of 15.60x. This is slightly higher than the Transportation industry average of 13.11x and its peer group’s average of 14.23x. Simply Wall St’s proprietary “Fair Ratio” for Hankyu Hanshin Holdings is 17.71x. This calculation incorporates benchmarks like profit margin, growth outlook, and industry characteristics, as well as the company’s market capitalization and specific risks. This approach gives a more tailored valuation assessment than simply comparing against peers or industry averages, since it reflects the nuances that can set one company apart from another even within the same sector.
With the current PE sitting just below the Fair Ratio, Hankyu Hanshin Holdings appears to be trading at a reasonable price relative to its fundamentals and expected future performance.
Result: ABOUT RIGHT
TSE:9042 PE Ratio as at Sep 2025
PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth.
Earlier we mentioned that there is an even better way to understand valuation. Let us introduce you to Narratives. A Narrative is your unique story or perspective about a company, built around your own assumptions for fair value, future revenue, earnings, and profit margins. By connecting the company’s story with a financial forecast and a calculated fair value, Narratives help you move beyond just ratios or static scores.
On Simply Wall St’s Community page, Narratives are an easy, interactive tool trusted by millions of investors. Narratives make it clearer when to buy or sell by directly comparing your Fair Value to the current price. As new information, like earnings updates or news, becomes available, your Narrative refreshes automatically so your story and its valuation keep pace with the market.
For example, two investors analyzing Hankyu Hanshin Holdings might create Narratives based on very different fair values and growth forecasts, highlighting how perspectives can vary widely. With Narratives, you can see these differences in one place, making smarter and more informed decisions accessible to everyone.
Do you think there’s more to the story for Hankyu Hanshin Holdings? Create your own Narrative to let the Community know!
TSE:9042 Earnings & Revenue History as at Sep 2025
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include 9042.
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