Gunma Bank (TSE:8334) Earnings Growth Keeps Valuation In Focus
What Gunma Bank’s Latest Earnings Tell You
Gunma Bank (TSE:8334) recently reported first quarter earnings to June 30, 2026, with net interest income of ¥30,591 million and net income of ¥17,584 million, alongside basic EPS of ¥46.46.
These figures compare with net interest income of ¥25,833 million, net income of ¥14,060 million, and basic EPS of ¥36.77 a year earlier. Investors now have fresh numbers to assess the stock’s recent performance.
See our latest analysis for Gunma Bank.
The latest earnings release comes after a strong run in Gunma Bank’s stock, with a 56.7% year to date share price return and a 1 year total shareholder return of 88.81%. That momentum builds on a very large 5 year total shareholder return of over 8x, which hints at investors reassessing both the growth potential and risk profile around the bank’s improving profitability.
If Gunma Bank’s recent move has you thinking about where else strong performance might be emerging, this is a good moment to scan for other resilient financials using our 11 top founder-led companies
Gunma Bank’s share price now sits above the average analyst target and well above some intrinsic value estimates. Is the recent surge stretching the rubber band or still leaving room within a fair value range?
Preferred P/E of 16.8x for Gunma Bank: Is it justified?
On the latest figures, Gunma Bank trades on a P/E of 16.8x, which sits above both the JP Banks industry average of 15.4x and a peer average of 15.2x. The share price of ¥2,765 also stands above one internal intrinsic value estimate of ¥1,774.48 based on an SWS DCF model of future cash flows.
The P/E multiple compares Gunma Bank’s current share price with its earnings per share. For banks, this is a common way for investors to judge how much the market is paying for each unit of current profit, especially when earnings are a central part of the story.
Here the signals are mixed. On one hand, the stock screens as expensive relative to both the JP Banks industry and a closer peer set when only the raw P/E is considered. On the other hand, the current 16.8x P/E sits below an estimated fair P/E of 19.1x. This indicates that the valuation could move toward that higher level if the market were to price Gunma Bank more in line with that fair ratio.
Compared with sector and peer averages, Gunma Bank’s higher P/E points to investors assigning a premium to its earnings profile. Yet the gap to the fair P/E estimate implies that this premium is not extreme when measured against that benchmark and that the current multiple is somewhere between a simple peer comparison and the higher fair ratio level that the regression points to.
Explore the SWS fair ratio for Gunma Bank
Result: Price-to-Earnings of 16.8x (ABOUT RIGHT)
However, investors still face risks if earnings momentum cools or if Gunma Bank’s current premium to analyst targets and intrinsic value narrows sharply.
Find out about the key risks to this Gunma Bank narrative.
Another View on Gunma Bank’s Valuation
Looking at Gunma Bank through the SWS DCF model gives a different angle. The current share price of ¥2,765 sits above an estimated future cash flow value of ¥1,774.48. That points to the stock trading at a premium to this cash flow based estimate. How much weight do you want to give that signal?
Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Gunma Bank 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 25 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 mix of opportunities and risks around Gunma Bank feels finely balanced, take a closer look at the details now and decide where you stand. To explore both sides of the story in more depth, start with these 3 key rewards and 1 important warning sign
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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.
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