--- title: "A Look At Nomura Micro Science (TSE:6254) Valuation After The Dividend Increase Signals Confidence In Future Growth" type: "News" locale: "en" url: "https://longbridge.com/en/news/287544920.md" description: "Nomura Micro Science (TSE:6254) has approved a 61 yen dividend, raising total annual payouts to 81 yen per share. The stock price is currently ¥5,110, reflecting a 39.6% return over 30 days and 68.9% year-to-date. Despite a high P/E ratio of 51x, indicating overvaluation compared to peers, a DCF analysis suggests it may be undervalued at ¥6,029.13 per share. Investors should weigh the mixed signals of growth potential and risks." datetime: "2026-05-25T16:34:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/287544920.md) - [en](https://longbridge.com/en/news/287544920.md) - [zh-HK](https://longbridge.com/zh-HK/news/287544920.md) --- # A Look At Nomura Micro Science (TSE:6254) Valuation After The Dividend Increase Signals Confidence In Future Growth Nomura Micro Science (TSE:6254) caught investor attention after its board approved a 61 yen year end dividend, taking total annual payouts to 81 yen per share despite softer earnings. See our latest analysis for Nomura Micro Science. The ¥5,110 share price comes after a strong run, with a 30 day share price return of 39.6% and a year to date share price return of 68.9%. The 1 year total shareholder return of 139.8% and 5 year total shareholder return of almost 5x suggest momentum has been building over both shorter and longer horizons as investors respond to the dividend decision and recent earnings updates. If Nomura Micro Science’s surge has you rethinking where growth could come from next, it might be worth scanning 35 power grid technology and infrastructure stocks With the stock already up sharply and trading only slightly below the ¥5,300 analyst target, the key question now is whether Nomura Micro Science is still mispriced or if the market is already accounting for future growth. ## Price-to-Earnings of 51x: Is it justified? Nomura Micro Science trades on a P/E of 51x, while the last close sits at ¥5,110, which puts the stock at a much richer level than peers. The P/E multiple compares what investors are paying today for each unit of current earnings. For a water treatment equipment supplier with exposure to electronics and pharmaceutical customers, a higher multiple can reflect expectations for strong profit growth or a belief that earnings are temporarily depressed. Here, the market is placing a valuation that is almost three times the peer average P/E of 17.5x and well above the JP Machinery industry average of 14.4x. It is also slightly above the estimated fair P/E of 48x, suggesting pricing that is ahead of what the fair ratio model implies the market could move toward if sentiment cools. Explore the SWS fair ratio for Nomura Micro Science **Result: Price-to-Earnings of 51x (OVERVALUED)** However, investors still face risks if earnings momentum slows or sector demand shifts, which could make a 51x P/E and strong recent returns look stretched. Find out about the key risks to this Nomura Micro Science narrative. ## Another way to look at value While the 51x P/E ratio points to an expensive stock, the SWS DCF model presents a different perspective. With an estimated future cash flow value of ¥6,029.13 per share, Nomura Micro Science at ¥5,110 appears about 15.2% undervalued. Which signal should carry more weight for you? Look into how the SWS DCF model arrives at its fair value. 6254 Discounted Cash Flow as at May 2026 Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Nomura Micro Science 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 16 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 Mixed signals on value and risk can feel uncomfortable, so do not sit on the fence. Review the trade off yourself and weigh up the 2 key rewards and 3 important warning signs. ## Looking for more investment ideas? If you are serious about building a stronger portfolio, do not stop your research here. Broaden your watchlist with other opportunities that could fit your style. - Target dependable income by scanning dividend payers that aim for resilience through 44 dividend fortresses. - Hunt for quality at a reasonable price by reviewing companies that screen as potential bargains in the 16 high quality undervalued stocks. - Strengthen your downside protection by focusing on financially robust businesses found through the solid balance sheet and fundamentals stocks screener (39 results). _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._ ### Valuation is complex, but we're here to simplify it. Discover if Nomura Micro Science might be undervalued or overvalued with our detailed analysis, featuring **fair value estimates, potential risks, dividends, insider trades, and its financial condition.** Access Free Analysis ### Related Stocks - [6254.JP](https://longbridge.com/en/quote/6254.JP.md) ## Related News & Research - [A Look At Tokyo Electron (TSE:8035) Valuation After Its Higher Annual Dividend Announcement](https://longbridge.com/en/news/287634233.md) - [A Look At Mitsui (TSE:8031) Valuation After Recent Share Price Weakness](https://longbridge.com/en/news/288014683.md) - [At JP¥7,440, Is RS Technologies Co., Ltd. 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