Today we're going to take a closer look at Small-Cap Industrials company Takuma Co, whose shares are currently trading at $8.25. We've been asking ourselves whether the company is under or over valued at today's prices... let's perform a brief value analysis to find out!
Takuma Co., Ltd. engages in the design, construction, and superintendence of various boilers, plant machineries, pollution prevention and environmental equipment plants, heating and cooling equipment, and feed water/drainage sanitation equipment and facilities in Japan and internationally. The company belongs to the Industrials sector, which has an average price to earnings (P/E) ratio of 20.49 and an average price to book (P/B) ratio of 3.78. In contrast, Takuma Co has a trailing 12 month P/E ratio of 9.1 and a P/B ratio of 0.0.
P/B ratios are calculated by dividing the company's market value by its equity's book value. Equity refers to all of the company's assets minus its liabilities. Traditionally, a P/B ratio of around 1 shows that a company is fairly valued, but owing to consistently higher valuations in the modern era, investors generally compare against sector averages.
Takuma Co has moved -34.7% over the last year compared to -7.0% for the S&P 500 — a difference of -28.0%. Takuma Co has a 52 week high of $12.64 and a 52 week low of $8.25.
