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Valuation & Risks ( 8570 ) Disclosure / Price Chart(s) / Valuation & Risk
Fundamental Equity Research

We set our target price at ¥1,200 using an excess return approach. We apply a PBR of c0.6x to our FY2/25 BPS forecast of ¥2,167. We derive this PBR from an RoE of 5.5% (our FY2/27 forecast), a risk-free rate of 0.5%, an overall market expected return rate of 6.7%, a beta of 0.7, and an adjustment coefficient of 0.5. Our scenario analysis puts the anticipated share price range between ¥700 and ¥1,900.


We see the following risks to the attainment of our target price: 1) changes in the financial environment in Japan and overseas, 2) changes in the interest-rate environment in Japan and overseas, and 3) business developments within the Aeon group.

 

 

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