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HORIBA (TSE:6856) has drawn attention after a strong past 3 months share performance, with the stock returning about 39.6%. This has prompted investors to reassess how current fundamentals line up with this move.
See our latest analysis for HORIBA.
The recent 39.6% 3 month share price return and 8.24% 1 month share price return sit alongside a 17.83% year to date share price gain and a 103.94% 1 year total shareholder return. Together, these figures suggest momentum has been building despite some short term volatility.
If HORIBA’s move has you thinking about where else strong trends might emerge, it could be a good time to scan 32 robotics and automation stocks as a starting point for other automation focused ideas.
With HORIBA now trading around ¥19,235 and sitting slightly above both its analyst price target and one estimate of intrinsic value, the key question is whether the recent gains leave more upside or if the market is already pricing in future growth.
On a P/E of 21.8x, HORIBA is priced above both its own estimated fair P/E of 19.4x and the averages for the JP Electronic industry and its peer group.
The P/E multiple indicates how much investors are currently paying for each unit of earnings. For HORIBA, that 21.8x figure compares with an industry average of 16.3x and a peer average of 20.1x, so the market is attaching a richer earnings tag to this business than to many of its closest comparables.
Earnings have grown 10.4% over the past year, with a 5 year earnings growth rate of 15.3% and earnings forecast to grow 9.58% per year. A higher multiple can therefore be read as investors paying up for a solid earnings record and continued growth expectations. However, the fact that this 21.8x multiple is also above the estimated fair P/E of 19.4x suggests the current pricing is stretching beyond the level indicated by our fair ratio analysis.
Compared to the JP Electronic industry on 16.3x, HORIBA’s 21.8x looks clearly richer, and even against the peer average of 20.1x the stock appears on the expensive side. If the market were to move closer to the estimated fair P/E of 19.4x, that would imply a lower valuation multiple than today.
Explore the SWS fair ratio for HORIBA
Result: Price-to-Earnings of 21.8x (OVERVALUED)
However, there are still clear risks, including the share price already sitting above the ¥17,750 analyst target and revenue growth of 4.56% that may not justify a premium P/E.
Find out about the key risks to this HORIBA narrative.
Our DCF model points to an estimated future cash flow value of ¥18,512.07 for HORIBA, compared with the current share price of ¥19,235. That suggests the shares sit above this cash flow based estimate, so how much weight do you want to put on earnings multiples versus cash generation?
Look into how the SWS DCF model arrives at its fair value.
6856 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 HORIBA 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 this mix of positives and concerns feels finely balanced, it may be worth moving quickly to review the full picture for yourself, including 2 key rewards and 1 important warning sign.
If HORIBA has caught your attention, do not stop here. You can use this momentum to evaluate a broader set of opportunities that could suit your style.
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 6856.T.
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