Mitsubishi Electric Corporation (6503.T) fair value
Industrials · Electrical Equipment & Parts · TSE · Japan
¥4770.00-2.27%
Market cap ¥9.76TNext earnings 2026-10-30Updated Oct 24, 2026 · valuation updating
Our verdict
No fair value
We are missing the financial data our models need for this company. It will appear once the data arrives.
Not valued: there are no financial statements on file yet.
ACCE opinionMitsubishi Electric Corporation (6503.T)
Fair value
Not available
ACCE price target
¥4617
Rating
Not rated
Horizon
12 months
ACCE price target published on 22 Oct 2026, 15:59 CEST.
Price used: ¥4770 at the close on 23 Oct 2026, 08:30 CEST.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
ACCE score
53
out of 100
P/E
24.6x
forward 28.9x
1-year return
+20.6%
Dividend yield
1.23%
Mitsubishi Electric Corporation in four questions
Plain answers, details below
Free accounts get 5 full stock pages a month, including the four answers.
Overview
ACCE thesis
Mitsubishi Electric makes factory automation controllers and servo drives, building and elevator systems, railway traction and signalling equipment, satellite communications payloads, and air conditioning under its Kirigamine and Mr. Slim brands. The structural case rests on electrification and automation demand that is hard to displace once a plant or rail network is built around its PLCs and drives, which supports its installed-base revenue. Revenue growth of 14.0% is running well ahead of what a mature Japanese industrial would normally show, and that is the number to test. The trade-off is thin profitability, with a 9.3% operating margin against a 32.5% gross margin and a 10.3% ROE, so earnings quality and margin expansion are the real questions. At 24.9 times trailing earnings and 29.6 times forward, the market is already paying for a continuation of that growth, which makes it worth a deeper look at order backlogs and segment margins before anything else.
⚠ Investor warnings · 2 flagsAI-assisted·How I use AI
moderate
Stretched valuation multiples
Forward P/E of 29.6 and EV/EBITDA of 16.2 leave little room for an earnings miss. Shares trade 3.3% above the ACCE price target of ¥4617.00.
moderate
Sequential revenue decline
Revenue fell 13.9% quarter over quarter despite 14.0% year-over-year growth, which suggests lumpy quarterly results. Confirm the trend holds in the next report.
AI research notes
AI-assisted·How I use AIWritten Oct 22, 2026 · figures from 2026-10-22 · prices to Oct 23, 2026
Why it could do well
Revenue grew 14.0% year over year, and the five-year average has been 29.5% per year, showing strong top-line momentum.
Free cash flow of JPY 172.6B over the last twelve months, with debt to equity of 0.07, gives the company a lot of financial room.
The average analyst price target of JPY 6813.33 sits 39.6% above the current share price, and earnings beat expectations by 4.7%.
Why it could disappoint
At a forward P/E of 29.6x, the shares already price in a lot of future growth, leaving little margin for error.
Return on equity of 10.3% and a net margin of 7.0% are modest for the capital and revenue the company is generating.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Walk me through this stock
Plain-English pros, cons, and what to watch. Pro feature.
PRO
Ask ACCE
Valuation
INVESTOR
Where 6503.T's valuation models land
Price
¥4770.00
Create a free account: 5 full stock pages a month, no card.
See what each model says, the assumptions behind it, the bad, normal and good cases, and why the fair value changed.
Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
The full quality picture: a reason under every score, how the scores moved, and the conviction breakdown.
+A plain reason under every score
+Conviction breakdown and growth / value / quality / momentum scores
+Score history: how each score moved over time
Analysts
Wall Street consensus
No analyst coverage yet.
Analyst intelligence INVESTOR FEATURE
The full analyst picture: the price-target distribution against the current price, forward consensus estimates, and how ACCE's own models compare.
+Price-target low / average / high vs the current price, with implied upside
+Forward revenue and EPS consensus by fiscal year
+ACCE fair-value models lined up against the Street
Smart Money
PRO
In one line
Trades are only made public after a delay. We show the delay so you know how old the news is.