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Tadano (TSE:6395) has caught investor attention after recent share price moves, with gains over the month and past 3 months prompting closer inspection of how its current valuation lines up with underlying business results.
See our latest analysis for Tadano.
At a share price of ¥1,379.0, Tadano has seen a 19.19% 1 month share price return and a 35.73% 3 month share price return, while the 1 year total shareholder return of 28.32% points to momentum that has been building rather than fading.
If this move in construction equipment is on your radar, it could be a good moment to look across the sector using our screener of 32 robotics and automation stocks as another source of ideas.
So with Tadano trading at ¥1,379 and an intrinsic discount flagging potential value even after a 36% 3 month run, is this still a mispriced crane maker, or are markets already reflecting expectations for future growth?
Tadano is flagged as good value on a P/E of 9.5x, with the shares at ¥1,379 compared to both peer and industry averages that sit materially higher.
The P/E multiple compares the current share price to earnings per share, so for a machinery manufacturer like Tadano it is a simple way to see what investors are currently paying for its profits.
Here, Tadano screens as good value versus three separate reference points. It trades below the estimated fair P/E of 12.8x, below the Japan Machinery industry average of 14.1x, and below a peer average of 20.3x, which suggests the market is pricing its earnings more conservatively than many comparables and below a level the fair ratio analysis indicates it could move toward.
That discount sits alongside a company that has recently grown earnings and improved net profit margins from 2.3% to 5.2%. It is considered good value in aggregate based on these relative checks, even though earnings are forecast to decline by an average of 5.8% per year over the next 3 years and revenue growth of 2.9% per year is expected to trail the broader JP market.
Explore the SWS fair ratio for Tadano
Result: Price-to-earnings of 9.5x (UNDERVALUED)
However, earnings growth pressure and any shift in expectations around Tadano’s current intrinsic discount could quickly challenge the idea that the shares remain mispriced.
Find out about the key risks to this Tadano narrative.
While Tadano screens as good value on a 9.5x P/E, our DCF model paints an even starker picture. With the shares at ¥1,379 and our estimate of future cash flow value at ¥3,171.71, the stock is flagged as trading at a 56.5% discount. That kind of gap can look attractive, but it also raises a question: which view do you trust more, the simple earnings multiple or the cash flow model?
Look into how the SWS DCF model arrives at its fair value.
6395 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 Tadano 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 19 high quality undervalued stocks. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.
If you see Tadano’s numbers differently or want to test your own assumptions against the data, you can build a custom view in just a few minutes by starting with Do it your way.
A great starting point for your Tadano research is our analysis highlighting 3 key rewards and 4 important warning signs that could impact your investment decision.
If you are weighing up Tadano’s valuation, it is a smart time to widen your watchlist with a few focused screens that surface different types of opportunities.
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.
Companies discussed in this article include 6395.T.
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