Analyse Mitsubishi Heavy Industries stock

Plausibility check: confirmed
Current price: 20.38 EUR, Consensus price target: 29.03 EUR, which corresponds to around +42% potential. Despite the high premium, the target is still plausible because it is within the required range of +/-25% around a fair value range of roughly 24 to 31 EUR derived from multiples and cyclicality.

Quantitative: The current P/E ratio of 38.32 appears high in isolation and is for Mitsubishi Heavy Industries but only of limited significance because the group is heavily influenced by cyclical earnings phases, project mix, margin levers and special effects. More relevant are sales and earni...