<div id="readability-page-1"><div><ul> <li>If you are wondering whether Kyowa Kirin is attractively priced or not, the starting point is to understand what the current share price actually reflects about the business.</li> <li>Over the last week the stock is up 1.9%, although it is down 3.9% over the past month and down 5.7% year to date, while the 1 year return stands at 9.9% and the 5 year return shows a 22.0% decline.</li> <li>Recent coverage around Kyowa Kirin has focused on how investors interpret its long term prospects and the balance between its current product portfolio and future pipeline potential. This context helps explain why the share price has seen mixed shorter term moves alongside a positive 1 year result but weaker 3 year and 5 year performance.</li> <li>On Simply Wall St’s 6 point valuation checklist, Kyowa Kirin scores a 3 out of 6, which sets up a closer look at how different methods like DCF, multiples and peer comparisons line up, and how a broader framework later in this article may give an even clearer view of value.</li> </ul> <p>Find out why Kyowa Kirin's 9.9% return over the last year is lagging behind its peers.</p> <h3>Approach 1: Kyowa Kirin Discounted Cash Flow (DCF) Analysis</h3> <p>A Discounted Cash Flow model estimates what a company might be worth by projecting its future cash flows and discounting them back to today, so you can compare that value with the current share price.</p> <p>For Kyowa Kirin, the model used is a 2 Stage Free Cash Flow to Equity approach. The latest twelve month Free Cash Flow is ¥68,481.30 million. Analyst and extrapolated projections suggest Free Cash Flow around ¥71,610.67 million in 2026 and ¥67,900 million in 2030, with further estimates extending out to 2035 based on Simply Wall St’s methodology.</p> <p>Bringing all of those projected cash flows back to today gives an estimated intrinsic value of ¥2,680.78 per share under this DCF model. This is then compared with the current share price and indicates that Kyowa Kirin is trading at an 11.6% discount to this estimate, based on this specific cash flow view.</p> <p><strong>Result: UNDERVALUED</strong></p> <p>Our Discounted Cash Flow (DCF) analysis suggests Kyowa Kirin is undervalued by 11.6%. Track this in your watchlist or portfolio, or discover 22 more high quality undervalued stocks.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/79e9efe1-f59e-42ed-bb8b-a39d48bda423/chart/dcf/query-ZGF0ZT0yMDI2LTA1LTE3?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/79e9efe1-f59e-42ed-bb8b-a39d48bda423/chart/dcf/query-ZGF0ZT0yMDI2LTA1LTE3"/><figcaption>4151 Discounted Cash Flow as at May 2026</figcaption></figure> <p>Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Kyowa Kirin.</p> <h3>Approach 2: Kyowa Kirin Price vs Earnings</h3> <p>For profitable companies, the P/E ratio is often a useful way to think about what you are paying for each unit of earnings. It links directly to what the business is currently generating, which many investors find easier to relate to than longer term cash flow models.</p> <p>What counts as a “normal” or “fair” P/E depends on how the market views a company’s growth outlook and risk profile. Higher expected earnings growth or lower perceived risk can support a higher P/E, while slower growth or higher risk usually points to a lower P/E.</p> <p>Kyowa Kirin currently trades on a P/E of 17.02x, very close to the Pharmaceuticals industry average of 16.02x and almost in line with the peer average of 17.04x. Simply Wall St’s Fair Ratio for Kyowa Kirin is 21.97x, which is a proprietary estimate of the P/E that might be expected given factors such as its earnings growth, profit margin, industry, market cap and company specific risks. Because it incorporates these elements rather than just comparing with broad industry or peer group figures, the Fair Ratio can provide a more tailored reference point. With the Fair Ratio above the current 17.02x level, this framework points to the stock trading below that implied fair P/E.</p> <p><strong>Result: UNDERVALUED</strong></p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/79e9efe1-f59e-42ed-bb8b-a39d48bda423/chart/pe-multiple-vs-industry/query-ZGF0ZT0yMDI2LTA1LTE3?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/79e9efe1-f59e-42ed-bb8b-a39d48bda423/chart/pe-multiple-vs-industry/query-ZGF0ZT0yMDI2LTA1LTE3"/><figcaption>TSE:4151 P/E Ratio as at May 2026</figcaption></figure> <p>P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 12 top founder-led companies.</p> <h3>Upgrade Your Decision Making: Choose your Kyowa Kirin Narrative</h3> <p>Earlier it was mentioned that there is an even better way to understand valuation. Narratives connect your view of Kyowa Kirin’s story with a simple forecast for revenue, earnings and margins, then link that to a Fair Value you can compare with the current price, all within an accessible tool on Simply Wall St’s Community page that updates when new news or earnings arrive. You can see, for example, one Kyowa Kirin Narrative that assumes a higher Fair Value because it expects stronger future profitability, and another that assumes a lower Fair Value because it builds in more conservative margins and revenue growth.</p> <p>Do you think there's more to the story for Kyowa Kirin? Head over to our Community to see what others are saying!</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/79e9efe1-f59e-42ed-bb8b-a39d48bda423/chart/quote-price/query-ZGF0ZT0yMDI2LTA1LTE3?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/79e9efe1-f59e-42ed-bb8b-a39d48bda423/chart/quote-price/query-ZGF0ZT0yMDI2LTA1LTE3"/><figcaption>TSE:4151 1-Year Stock Price Chart</figcaption></figure> <p><em> This article by Simply Wall St is general in nature. <strong>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.</strong> 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.</em></p><div><h3>Valuation is complex, but we're here to simplify it.</h3><p>Discover if Kyowa Kirin might be undervalued or overvalued with our detailed analysis, featuring <strong>fair value estimates, potential risks, dividends, insider trades, and its financial condition.</strong></p><p>Access Free Analysis</p></div></div></div>

4151

<p>Kyowa Kirin's stock has seen mixed performance, with a 1.9% increase over the past week but a 5.7% decline year-to-date. The company is currently undervalued by 11.6% according to a Discounted Cash Flow analysis, with a projected intrinsic value of ¥2,680.78 per share. Its P/E ratio stands at 17.02x, slightly above the industry average, indicating it is trading below its fair value. Investors are encouraged to explore different narratives for a clearer valuation perspective.</p>

Is Kyowa Kirin (TSE:4151) Pricing Reflect Its Mixed Long Term Share Performance