--- title: "Is Teijin (TSE:3401) Fairly Valued As It Revises Its Executive Share Incentive Plan?" type: "News" locale: "en" url: "https://longbridge.com/en/news/291712651.md" description: "Teijin (TSE:3401) revised its executive share incentive plan, disposing of 102,484 treasury shares valued at ¥169 million to 25 executives. While the stock has risen significantly, valuation views are mixed: one analysis deems it 18.2% overvalued with a fair value of ¥1,454, whereas an SWS DCF model suggests a 34.9% discount to a ¥2,638 intrinsic value." datetime: "2026-07-05T03:57:33.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/291712651.md) - [en](https://longbridge.com/en/news/291712651.md) - [zh-HK](https://longbridge.com/zh-HK/news/291712651.md) generator: "portal-rs" --- # Is Teijin (TSE:3401) Fairly Valued As It Revises Its Executive Share Incentive Plan? ## Executive Share Incentive Correction and What It Means for Teijin Stock Teijin (TSE:3401) has amended its notice on treasury share disposal linked to performance share units, clarifying the number of shares, total value, and eligible executives in its stock-based compensation plan. Following the correction, Teijin plans to dispose of 102,484 treasury shares valued at ¥169,098,600 to 25 group directors and executives, and has submitted an amended extraordinary report to satisfy disclosure requirements. See our latest analysis for Teijin. Teijin’s share price has gathered momentum in recent months, with a 1-month share price return of 5.69% and year to date share price return of 28.10%. Its 1-year total shareholder return of 47.27% points to meaningful gains for long term holders. If this executive incentive update has you thinking about wider opportunities, it could be a useful moment to scan the market for 12 top founder-led companies With Teijin shares up strongly over the past year and trading above the average analyst price target, yet flagged as trading below some estimates of intrinsic value, the key question is whether there is still a buying opportunity or whether the market is already pricing in future growth. ## Most Popular Narrative: 18.2% Overvalued On the latest narrative, Teijin’s fair value sits at ¥1,454 against a last close of ¥1,718.5, putting the share price above that central estimate while still assuming a meaningful recovery story. > *Anticipated global growth in demand for lightweight, high-performance materials in automotive, aerospace, and renewable energy sectors, driven by sustainability and stricter environmental regulations, positions Teijin's advanced composites and aramid fibers for revenue recovery and long-term topline growth, especially as cost structure reforms begin to take full effect.* *Read the complete narrative.* Want to see what sits under that recovery story? The narrative leans on modest revenue acceleration, a swing from deep losses to profits, and a richer earnings multiple. The missing piece is how those assumptions stack over time. **Result: Fair Value of ¥1,454 (OVERVALUED)** Have a read of the narrative in full and understand what's behind the forecasts. However, Teijin’s reliance on cost cuts in key materials and healthcare segments, along with reduced diversification after exiting North American Composites, could both undermine that recovery narrative. Find out about the key risks to this Teijin narrative. ## Another View on Teijin’s Valuation The first narrative framed Teijin as 18.2% overvalued against a ¥1,454 fair value, but the SWS DCF model points in the opposite direction. On that view, Teijin at ¥1,718.5 trades at a 34.9% discount to an estimated future cash flow value of ¥2,638.28. Which story feels more convincing to you? Look into how the SWS DCF model arrives at its fair value. 3401 Discounted Cash Flow as at Jul 2026 ## Next Steps If this mixed picture on Teijin has you undecided, act while the data is fresh and weigh both the risks and rewards for yourself with 3 key rewards and 2 important warning signs ## Looking for more investment ideas beyond Teijin? If Teijin has sharpened your focus on opportunities, do not stop here. Broaden your watchlist now so you are not late to the next move. - Hunt for misunderstood value and potential upside by scanning 20 high quality undervalued stocks that pair attractive pricing with solid financial traits. - Strengthen your income approach by reviewing 51 dividend fortresses that combine higher yields with a focus on resilience. - Protect your capital first by filtering for 51 resilient stocks with low risk scores designed to highlight companies with steadier risk profiles. *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 Teijin 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 - [3401.JP](https://longbridge.com/en/quote/3401.JP.md) ## Related News & Research - [WHILL selects Teijin carbon fiber composite for new Model C Lite mobility device](https://longbridge.com/en/news/297849649.md) - [Teijin targets FY2028 adjusted operating income of JPY 60 billion under new midterm plan](https://longbridge.com/en/news/297109147.md) - [Mizuho Securities Keeps Their Hold Rating on Anritsu (AITUF)](https://longbridge.com/en/news/298222582.md) - [Does FFRI Security (TSE:3692) Deserve A Spot On Your Watchlist?](https://longbridge.com/en/news/298082351.md) - [ANALYSIS-Yen's changing fortunes might finally be spooking the bears](https://longbridge.com/en/news/298005138.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**