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Mitsubishi HC Capital (TSE:8593) Valuation Check After Recent Share Price Momentum

Simply Wall St · 3d ago

Mitsubishi HC Capital (TSE:8593) has drawn fresh attention after a recent share price move, with the stock up around 7% over the past month and about 13% in the past 3 months.

See our latest analysis for Mitsubishi HC Capital.

That recent momentum sits alongside a 1 year total shareholder return of 37.27% and a 3 year total shareholder return above 100%. Together with the latest share price of ¥1,347.5, this suggests investors have been reassessing Mitsubishi HC Capital’s prospects and risk profile over time.

If this kind of move has your attention, it could be a good moment to broaden your watchlist and check out fast growing stocks with high insider ownership.

With the shares at ¥1,347.5, trading below one intrinsic value estimate yet above the average analyst target, the key question is whether Mitsubishi HC Capital is still undervalued or if the market is already pricing in future growth.

Price-to-Earnings of 11.9x: Is it justified?

On a P/E of 11.9x at ¥1,347.5, Mitsubishi HC Capital screens as inexpensive compared with similar companies, which points to an undervalued earnings profile.

The P/E ratio compares the current share price to earnings per share, so it gives you a quick sense of how much you are paying for each unit of profit. For a diversified financial business like Mitsubishi HC Capital, where earnings are a key focus, this is often one of the first yardsticks investors look at.

Here, the stock is described as good value against both peers and the broader industry, with its 11.9x P/E below the peer average of 19.1x and the JP diversified financials average of 13.2x. It is also below an estimated fair P/E of 15.7x, which suggests the multiple could have room to move closer to that level if market expectations around earnings and growth align with this fair ratio view.

Explore the SWS fair ratio for Mitsubishi HC Capital

Result: Price-to-Earnings of 11.9x (UNDERVALUED)

However, you still need to watch for earnings risk, given that analyst targets sit below today’s ¥1,347.5 price. Any slowdown in revenue or net income growth could shift sentiment.

Find out about the key risks to this Mitsubishi HC Capital narrative.

Another View: What Does The DCF Say?

While the 11.9x P/E ratio points to Mitsubishi HC Capital looking inexpensive against peers and the industry, our DCF model comes out even more optimistic, with an estimated fair value of ¥2,442.37 versus the current ¥1,347.5 price. Both signals lean toward undervaluation. The real puzzle is how long the gap between price and value might persist.

Look into how the SWS DCF model arrives at its fair value.

8593 Discounted Cash Flow as at Jan 2026
8593 Discounted Cash Flow as at Jan 2026

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Mitsubishi HC Capital for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 881 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Mitsubishi HC Capital Narrative

If you see the figures differently or want to weigh the assumptions yourself, you can build a custom view of Mitsubishi HC Capital in just a few minutes, starting with Do it your way.

A great starting point for your Mitsubishi HC Capital research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

If Mitsubishi HC Capital is on your radar, this can be a useful moment to widen your search and line up a few other potential opportunities as well.

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.