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Hitachi Ltd
TSE:6501

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Hitachi Ltd
TSE:6501
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Price: 4 795 JPY -1.78% Market Closed
Market Cap: ¥21.7T

EV/IC

1.8
Current
18%
More Expensive
vs 3-y average of 1.5

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
1.8
=
Enterprise Value
¥21.2T
/
Invested Capital
¥11.5T

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
1.8
=
Enterprise Value
¥21.2T
/
Invested Capital
¥11.5T

Valuation Scenarios

Hitachi Ltd is trading above its 3-year average

If EV/IC returns to its 3-Year Average (1.5), the stock would be worth ¥4 075.96 (15% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-84%
Maximum Upside
No Upside Scenarios
Average Downside
50%
Scenario EV/IC Value Implied Price Upside/Downside
Current Multiple 1.8 ¥4 795
0%
3-Year Average 1.5 ¥4 075.96
-15%
5-Year Average 0.3 ¥774.47
-84%
Industry Average 0.8 ¥2 139.62
-55%
Country Average 1 ¥2 569.44
-46%

Forward EV/IC
Today’s price vs future invested capital

Not enough data available to calculate forward EV/IC

Peer Comparison

All Multiples
EV/IC
P/E
All Countries
Close
Market Cap EV/IC P/E
JP
Hitachi Ltd
TSE:6501
21.6T JPY 1.8 26.3
US
General Electric Co
NYSE:GE
298.9B USD 2.7 34.6
DE
Siemens AG
XETRA:SIE
197.2B EUR 1.6 24.7
US
Honeywell International Inc
NASDAQ:HON
134.7B USD 2.8 29.8
ZA
Bidvest Group Ltd
JSE:BVT
79.3B ZAR 1.1 13
US
3M Co
NYSE:MMM
74.3B USD 2.8 26.7
CN
CITIC Ltd
HKEX:267
375.3B HKD 0 5.7
US
Roper Technologies Inc
F:ROP
30.8B EUR 1.4 21.9
KR
Samsung C&T Corp
KRX:028260
48.8T KRW 0.6 20
HK
CK Hutchison Holdings Ltd
HKEX:1
249.1B HKD 0.4 21
HK
Jardine Matheson Holdings Ltd
SGX:J36
20.1B USD 0.3 18.5

Market Distribution

Higher than 75% of companies in Japan
Percentile
75th
Based on 5 142 companies
75th percentile
1.8
Low
0 — 0.7
Typical Range
0.7 — 1.5
High
1.5 —
Distribution Statistics
Japan
Min 0
30th Percentile 0.7
Median 1
70th Percentile 1.5
Max 23 050 349

Hitachi Ltd
Glance View

In the bustling world of global conglomerates, Hitachi Ltd. stands as a testament to Japan's industrial prowess, weaving a narrative of adaptability and innovation that has spanned more than a century. Founded in 1910 as an electrical repair shop by Namihei Odaira, Hitachi has since transformed into a multifaceted giant, intricately involved in various sectors including information technology, social infrastructure, high functional materials and components, automotive systems, healthcare, and others. Initially rooted in manufacturing, Hitachi's story embodies the evolution from a local supplier of electric motors to a key player in the tech-driven, global economy. Today, the corporation thrives through a strategic amalgamation of hardware and digital solutions, offering products and services that cater to the complexities of modern society and drive social innovation. At the core of Hitachi's business model lies a symphonic integration of its broad industry units, making it an indispensable cog in the machinery of industries worldwide. Revenue streams are generated through the sale of high-tech industrial machinery, sophisticated IT services, and comprehensive solutions for infrastructure development. Hitachi's prowess in digital solutions, particularly through its IT services division, allows it to tailor services that address the dynamic needs of sectors such as finance, government, and healthcare. Additionally, infrastructure plays a pivotal role, with projects ranging from energy systems to transportation and city planning. By continuously reinventing itself and leveraging synergies across its diverse business lines, Hitachi has positioned itself as a company that doesn't just keep pace with technological change but actively shapes and harnesses it to fuel its financial engine.

Intrinsic Value
4 125.15 JPY
Overvaluation 14%
Intrinsic Value
Price ¥4 795
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