--- title: "Assessing Asahi Kasei (TSE:3407) Valuation After AK1960 Enters Phase I Trials" type: "News" locale: "en" url: "https://longbridge.com/en/news/276281727.md" description: "Asahi Kasei (TSE:3407) has entered Phase I trials for AK1960, an endothelin A receptor antagonist, boosting investor interest. The stock has seen a 16.66% return over 30 days and an 81.82% return over the past year. Currently trading at a P/E of 15.3x, it is undervalued compared to peers. A DCF analysis suggests a future cash flow value of ¥3,007.81 per share, indicating further potential upside. Investors are advised to consider risks and explore additional investment opportunities." datetime: "2026-02-18T22:36:06.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/276281727.md) - [en](https://longbridge.com/en/news/276281727.md) - [zh-HK](https://longbridge.com/zh-HK/news/276281727.md) generator: "portal-rs" --- # Assessing Asahi Kasei (TSE:3407) Valuation After AK1960 Enters Phase I Trials Asahi Kasei (TSE:3407) is back on investors’ radar after its pharma arm and Alchemedicine moved endothelin A receptor antagonist AK1960 into Phase I trials for refractory conditions such as chronic kidney disease. See our latest analysis for Asahi Kasei. Those healthcare moves sit alongside fresh earnings guidance and recent results. The market has responded with a strong 30 day share price return of 16.66% and a 1 year total shareholder return of 81.82%, suggesting momentum has been building over both shorter and longer horizons. If this healthcare update has you thinking about where else growth might emerge, it could be a good time to scan our screener of 6 healthcare AI stocks as a starting list of ideas. With the shares up sharply over the past year and trading around an estimated 41% discount to one intrinsic value measure, the key question now is whether Asahi Kasei still offers an entry point or if the market is already pricing in future growth. ## Preferred P/E of 15.3x: Is it justified? Asahi Kasei is trading on a P/E of 15.3x, with the shares at ¥1,779 and our model suggesting the stock is trading at a 40.9% discount to one intrinsic value estimate. The P/E multiple compares the current share price to earnings per share, so it is essentially the price investors are paying for each unit of current earnings. For Asahi Kasei, that 15.3x sits well below the peer average of 48.9x. This points to the market assigning a lower earnings multiple than many similar companies. Despite that gap, the shares are described as slightly expensive compared with the broader JP Chemicals industry average P/E of 14.8x. This means the market is pricing Asahi Kasei at a small premium to its home sector while still well below the peer group the model uses. Relative to an estimated fair P/E of 20.2x, the current 15.3x is also lower, which indicates there may be room for the multiple to move closer to that fair level if earnings and sentiment support it over time. Explore the SWS fair ratio for Asahi Kasei **Result: Price-to-Earnings of 15.3x (UNDERVALUED)** However, you also need to weigh up risks such as the recent strong share price run and the wide mix of businesses, which can complicate earnings visibility. Find out about the key risks to this Asahi Kasei narrative. ## Another View: DCF Points To Deeper Value While the 15.3x P/E already hints at some value, our DCF model goes further. It places Asahi Kasei's future cash flow value at ¥3,007.81 per share versus a current price of ¥1,779, which signals the shares are undervalued. If both methods lean this way, how comfortable are you with the risks that come with that gap? Look into how the SWS DCF model arrives at its fair value. 3407 Discounted Cash Flow as at Feb 2026 Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Asahi Kasei 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 20 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 If this all sounds optimistic, now is a good time to review the numbers yourself and decide how compelling the story really is. You can start with 4 key rewards. ## Looking for more investment ideas? If Asahi Kasei has caught your attention, do not stop here. Broadening your watchlist with fresh ideas can help you spot opportunities you might otherwise miss. - Target potential mispricing by scanning our list of 20 high quality undervalued stocks that currently screen well on both quality and price. - Strengthen your income stream by reviewing 14 dividend fortresses that combine higher yields with supporting fundamentals. - Prioritise resilience by checking 51 resilient stocks with low risk scores that stand out for lower risk scores and sturdier financial 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.* ### **New:** Manage All Your Stock Portfolios in One Place We've created the **ultimate portfolio companion** for stock investors, **and it's free.** • Connect an unlimited number of Portfolios and see your total in one currency • Be alerted to new Warning Signs or Risks via email or mobile • Track the Fair Value of your stocks Try a Demo Portfolio for Free ### Related Stocks - [3407.JP](https://longbridge.com/en/quote/3407.JP.md) - [AHKSY.US](https://longbridge.com/en/quote/AHKSY.US.md) ## Related News & Research - [Asahi Kasei says Japan approves Empaveli for C3 glomerulopathy, immune complex MPGN](https://longbridge.com/en/news/296747787.md) - [Asahi Kasei, partners sign JOGMEC contract for ship-based CCS design work at Mizushima hub](https://longbridge.com/en/news/296735268.md) - [Asahi Kasei targets 10 new license deals in FY2025-27, aims for JPY 10 billion profit by around 2030](https://longbridge.com/en/news/296423590.md) - [Asahi Kasei expands Kawasaki electrolyzer, chlor-alkali equipment capacity to at least 2 GW each by 2028](https://longbridge.com/en/news/296290110.md) - [Joby and Archer Are Racing to FAA Certification While Burning Hundreds of Millions a Year. Here's the 1 Number That Picks the Winner.](https://longbridge.com/en/news/296704487.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**