--- title: "Assessing Ushio (TSE:6925) Valuation After Leadership Change And Strong Recent Shareholder Returns" type: "News" locale: "en" url: "https://longbridge.com/en/news/283388142.md" description: "Ushio (TSE:6925) has appointed Takuya Matsumoto as President and CEO, coinciding with a strong share price increase of 12.13% over the past month and a 105.86% return over the past year. Despite this momentum, Ushio's P/E ratio of 50.3x is significantly higher than industry averages, suggesting it may be overvalued. Forecasted earnings growth of 37.2% per year contrasts with lower net profit margins and return on equity. A DCF analysis indicates a fair value of ¥1,899.68 per share, raising concerns about future growth sustainability." datetime: "2026-04-20T17:52:14.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/283388142.md) - [en](https://longbridge.com/en/news/283388142.md) - [zh-HK](https://longbridge.com/zh-HK/news/283388142.md) generator: "portal-rs" --- # Assessing Ushio (TSE:6925) Valuation After Leadership Change And Strong Recent Shareholder Returns ## Leadership change at Ushio and what it could mean for investors Ushio (TSE:6925) is back on investor radars after Ushio Industry & Entertainment named Takuya Matsumoto as President and CEO, highlighting a leadership shift tied closely to the group’s global business ambitions. See our latest analysis for Ushio. The leadership change comes at a time when momentum has been building, with a 1-month share price return of 12.13% at ¥3,207.0 and a 1-year total shareholder return of 105.86%, indicating significantly stronger longer term performance. If this kind of turnaround story interests you, it can be useful to broaden your search and see how other industrial names stack up in the 11 top founder-led companies With Ushio shares at ¥3,207.0 and recent returns running well ahead of the broader market, the key question now is simple: are you looking at an underappreciated compounder, or has the market already priced in future growth? ## Price-to-earnings of 50.3x: Is it justified? On a P/E of 50.3x at a share price of ¥3,207.0, Ushio trades at a clear premium to both its peer group and the wider electrical equipment space. P/E compares the current share price to earnings per share, so a higher ratio usually reflects the market paying more for each unit of current earnings. For a business like Ushio that operates across light sources, optical equipment and visual imaging, a premium P/E often signals that investors are focusing on expected earnings growth rather than current profit levels. That backdrop matters here. Earnings are forecast to grow 37.2% per year, which is faster than the 10.2% expected for the broader JP market, and revenue is forecast to grow 9.9% per year versus 5.8% for the JP market. At the same time, net profit margins are currently 2.9%, lower than last year’s 4.5%, and return on equity sits at 2.6%, which is considered low. Against that earnings and profitability profile, a 50.3x P/E stands well above the estimated fair P/E of 31x. This is a level the market could move towards if sentiment cools. The contrast is even sharper against peers. Ushio’s 50.3x P/E is more than triple the JP Electrical industry average of 15.7x and also meaningfully higher than the peer average of 20.1x. That gap suggests investors are currently placing a much richer value on Ushio’s earnings than is typical for the sector or its peer set. At the same time, the fair P/E estimate points to a materially lower level that would be more in line with underlying fundamentals. Explore the SWS fair ratio for Ushio **Result: Price-to-earnings of 50.3x (OVERVALUED)** However, the fair value discount of 68.8% and a share price sitting above the ¥2,975 target suggest that sentiment could reverse quickly if growth expectations soften. Find out about the key risks to this Ushio narrative. ## Another view: what the DCF model says While the 50.3x P/E suggests a rich valuation, our DCF model presents an even starker picture, with an estimated future cash flow value of ¥1,899.68 per share versus the current ¥3,207.0. On that basis, Ushio screens as overvalued. The key question is how much confidence investors place in the growth forecasts holding up. Look into how the SWS DCF model arrives at its fair value. 6925 Discounted Cash Flow as at Apr 2026 Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Ushio 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 17 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. ## Next Steps With sentiment this mixed, it makes sense to look past the headlines and weigh the trade off between risk and reward for yourself. To help you stress test your view against the market’s concerns and optimism, start by checking the 1 key reward and 2 important warning signs ## Looking for more investment ideas? If you are serious about building a stronger portfolio, do not stop with just one company. Use these focused stock ideas to widen your opportunity set before the market moves on. - Target quality potential by checking companies that screen as 17 high quality undervalued stocks and see which ones align with your own return and risk expectations. - Strengthen your income stream by reviewing 30 dividend fortresses that might complement growth focused holdings. - Dial back risk in your portfolio by assessing 48 resilient stocks with low risk scores that could help balance out more volatile positions. *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.* ### **New:** AI Stock Screener & Alerts Our new AI Stock Screener scans the market every day to uncover opportunities. • Dividend Powerhouses (3%+ Yield) • Undervalued Small Caps with Insider Buying • High growth Tech and AI Companies Or build your own from over 50 metrics. 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