4506.T
Sumitomo Dainippon Pharma Co Ltd
Price:  
1,032 
JPY
Volume:  
5,246,500
Japan | Pharmaceuticals

4506.T Fair Value

-71.2 %
Upside

What is the fair value of 4506.T?

As of 2025-07-15, the Fair Value of Sumitomo Dainippon Pharma Co Ltd (4506.T) is 296.98 JPY. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 1,032 JPY, the upside of Sumitomo Dainippon Pharma Co Ltd is -71.2%.

Is 4506.T a good investment?

With the market price of 1,032 JPY and our fair value calculation, Sumitomo Dainippon Pharma Co Ltd (4506.T) is not a good investment. Investing in 4506.T stocks now will result in a potential loss of 71.2%.

1,032 JPY
Stock Price
296.98 JPY
Fair Price
FAIR VALUE CALCULATION

4506.T Fair Value

Peter Lynch's formula is:

4506.T Fair Value
= Earnings Growth Rate x TTM EPS
4506.T Fair Value
= 5 x 59.4
4506.T Fair Value
= 296.98

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

Historical Earnings
03-202103-202203-202303-202403-20255Y Avg
Net income56,21956,413-74,512-314,96923,634-50,643
YoY growth38%0.3%-232.1%-322.7%107.5%-81.8%

4506.T Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
Shionogi & Co Ltd2,212,955191.61,854.33-25.5%
Kyowa Kirin Co Ltd1,300,93497.8488.98-80.2%
Ono Pharmaceutical Co Ltd817,104100.4516.21-68.5%
Taisho Pharmaceutical Holdings Co Ltd703,281102.7513.74-94%
Santen Pharmaceutical Co Ltd562,5181062,649.8361.1%
Hisamitsu Pharmaceutical Co Inc333,657229.42,302.5-41.2%
Tsumura & Co275,261422.59,902.63176.1%
Nippon Shinyaku Co Ltd211,101463.56,885.93129.1%
Kaken Pharmaceutical Co Ltd137,2343851,925.09-49.2%
Mochida Pharmaceutical Co Ltd107,205156.22,067.41-29.8%

4506.T Fair Value - Key Data

Market Cap (mil)410,633
P/E17.4x
Forward P/E35.5x
EPS59.4
Avg earnings growth rate-81.8%
TTM earnings23,634

4506.T Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.