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DIC (TSE:4631) has caught investor attention after recent share price moves, including a 2.7% decline over the past day alongside gains over the past week, month, and past 3 months.
With the stock last closing at ¥4,250 and a reported intrinsic discount of 26.3%, investors are weighing how this pricing compares with the company’s current earnings, growth profile, and business mix.
See our latest analysis for DIC.
While the 2.7% 1 day share price decline stands out, DIC’s 30 day share price return of 12.82% and 1 year total shareholder return of 35.37% point to positive momentum that aligns with its current intrinsic discount.
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With DIC trading at ¥4,250 and an indicated 26.3% intrinsic discount, yet sitting above the analyst price target, the key question is whether the market is underestimating the business or already pricing in future growth.
DIC is trading on a P/E of 12.4x, which sits below both its peer average of 18.8x and the Japan Chemicals industry average of 14.8x. The current level is also below our fair P/E estimate of 15.7x.
The P/E multiple compares the current share price to the company’s earnings per share and is a common way investors gauge how much they are paying for each unit of profit. For a business like DIC, which operates across printing materials, pigments and performance materials, this ratio offers a quick indication of how the market is valuing its earnings relative to similar companies.
The forecast earnings growth rate of 5.1% per year trails the wider Japan market forecast of 9.2%. A lower P/E in this context can suggest the market is pricing in more modest profit expansion. At the same time, the fair P/E estimate of 15.7x stands above the current 12.4x. This points to a level the multiple might reasonably move toward if earnings and cash flows follow existing expectations and market sentiment shifts closer to that fair value view.
Compared with the peer average of 18.8x and the Japan Chemicals industry average of 14.8x, DIC’s 12.4x P/E is meaningfully lower. This indicates the shares are valued at a discount to both direct peers and the broader sector on current earnings. Relative to the estimated fair P/E of 15.7x, the current multiple also appears conservative, which may be relevant for investors assessing how much they are paying today against an earnings profile that is forecast to grow, although at a slower pace than the overall market.
