Tokyo Electric Power Company Holdings (TSE:9501) disclosed a large extraordinary loss related to costs from disaster recovery and updated nuclear damage compensation estimates for the period ending March 31, 2026. The news highlights ongoing financial pressures as well as continued uncertainty about nuclear plant restarts.
See our latest analysis for Tokyo Electric Power Company Holdings.
Despite headline-grabbing losses related to disaster recovery, Tokyo Electric Power Company Holdings’ share price momentum remains robust, rising more than 10% over the past month and up an impressive 63% year-to-date. Long-term investors have seen a 23% total shareholder return in the past year and 170% over five years, reflecting growing investor optimism even amid unresolved nuclear risks.
If you’re watching big moves in the utility sector, it’s also a great time to see what’s happening beyond the headlines and discover fast growing stocks with high insider ownership
With shares riding a wave of strong gains despite eye-catching losses, the key question is whether Tokyo Electric Power Company Holdings is undervalued or if the market has already priced in all upcoming growth. Could this be a buying opportunity, or is everything accounted for?
Price-to-Sales Ratio of 0.2x: Is it justified?
Tokyo Electric Power Company Holdings is trading at a price-to-sales ratio of 0.2x, placing it well below both peers and the industry average at the latest close of ¥772.1. This suggests a deep discount relative to similar companies.
The price-to-sales ratio measures the company’s market capitalization against its annual revenue. For utilities, where profits can fluctuate but revenues are steady, this metric highlights how much investors are willing to pay for each yen of sales.
With Tokyo Electric Power Company Holdings at 0.2x, Asian Electric Utilities averaging 1.1x, and peers around 0.4x, the market has placed a much lower value on its sales than competitors. Notably, the estimated fair price-to-sales ratio is 0.4x, which is double the company’s current level and may suggest meaningful upside if sentiment improves.
Explore the SWS fair ratio for Tokyo Electric Power Company Holdings
Result: Price-to-Sales of 0.2x (UNDERVALUED)
However, ongoing uncertainty around nuclear restarts and persistent disaster-related costs remain potential catalysts that could shift investor sentiment in the months ahead.
Find out about the key risks to this Tokyo Electric Power Company Holdings narrative.
Build Your Own Tokyo Electric Power Company Holdings Narrative
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A great starting point for your Tokyo Electric Power Company Holdings research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
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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.
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