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    Mitsubishi Gas Chemical Company (TSE:4182) Could Be 61% Undervalued Following Raised Guidance

    Simply Wall St·08/13/2026 05:30:35
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    Mitsubishi Gas Chemical Company (TSE:4182) raised its earnings guidance for the current half year and full fiscal year, alongside first quarter results that showed higher sales, net income and earnings per share compared with a year earlier.

    See our latest analysis for Mitsubishi Gas Chemical Company.

    The raised guidance arrived after a sharp 6.16% 1-day share price gain to ¥4,050. That move follows a 19.03% decline in the 90-day share price return and a much stronger 1-year total shareholder return of 68.16%, suggesting longer-term momentum has been far more supportive than recent trading.

    If Mitsubishi Gas Chemical Company's results have you reassessing opportunities in the broader market, this can be a good moment to scan for other ideas using the 11 top founder-led companies

    Bulls will point to Mitsubishi Gas Chemical Company's upgraded guidance and strong recent quarter. Bears will flag the share price pullback and past loss. Which side does the current valuation lean toward next?

    DCF valuation: how cheap is Mitsubishi Gas Chemical Company on cash flows?

    The SWS DCF model estimates a fair value of ¥10,300.72 for Mitsubishi Gas Chemical Company compared with a last close of ¥4,050. This points to a wide gap between the current share price and the modelled value based on projected cash flows.

    The discounted cash flow approach projects future cash flows for the business and then discounts them back to today using a required rate of return. The result is a present value estimate that reflects the cash the company is expected to generate for shareholders over time.

    For Mitsubishi Gas Chemical Company, this framework helps put the current unprofitable status and forecast earnings growth into context. Forecast annual earnings growth of 42.33% and revenue growth of 5.1% feed into those future cash flow expectations, even as the company currently reports a loss of ¥30,394 and a negative return on equity of 3.36%.

    Look into how the SWS DCF model arrives at its fair value.

    Result: DCF fair value of ¥10,300.72 (UNDERVALUED)

    However, Mitsubishi Gas Chemical Company still carries the risk that ongoing losses and a weaker recent share price trend could undermine confidence in the positive cash flow outlook.

    Find out about the key risks to this Mitsubishi Gas Chemical Company narrative.

    Another view on Mitsubishi Gas Chemical Company’s valuation

    While the SWS DCF model points to Mitsubishi Gas Chemical Company looking undervalued, the price to sales ratio paints a different picture. The stock trades on 1x sales, which is higher than the JP Chemicals industry average of 0.8x, yet below the peer average of 1.7x and the fair ratio of 1.3x. That mix of discount and premium raises a simple question: Which reference point matters most for you when judging valuation risk and opportunity?

    See what the numbers say about this price — find out in our valuation breakdown.

    TSE:4182 P/S Ratio as at Aug 2026
    TSE:4182 P/S Ratio as at Aug 2026

    Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Mitsubishi Gas Chemical Company 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 23 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 the mix of upgraded guidance and recent share price swings at Mitsubishi Gas Chemical Company feels mixed, act quickly and check the underlying data yourself. To frame that view with both caution and opportunity in mind, take a closer look at the 2 key rewards and 2 important warning signs

    Looking for more investment ideas beyond Mitsubishi Gas Chemical Company?

    If Mitsubishi Gas Chemical Company is on your radar, do not stop there. Widen your view and pressure test your ideas against other stocks that match your standards.

    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.