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Arakawa Chemical Industries (TSE:4968) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Arakawa Chemical Industries Forward PE Ratio Related Terms
Arakawa Chemical Industries Forward PE Ratio Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Arakawa Chemical Industries Forward PE Ratio Chart
Arakawa Chemical Industries Annual Data
Trend
2025-03
2026-03
Forward PE Ratio
9.59
10.44
Arakawa Chemical Industries Quarterly Data
2025-03
2025-06
2025-09
2025-12
2026-03
2026-06
Forward PE Ratio
9.59
10.70
11.89
8.84
10.44
16.59
TSE:4968 vs LIN, SHW, ECL: Forward PE Ratio Comparison
For the Specialty Chemicals subindustry, Arakawa Chemical Industries's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Arakawa Chemical Industries Forward PE Ratio vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Arakawa Chemical Industries's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Arakawa Chemical Industries's Forward PE Ratio falls into.
Arakawa Chemical Industries Forward PE Ratio Calculation
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Arakawa Chemical Industries (TSE:4968) has a Forward PE Ratio of 16.30 as of Aug. 14, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Arakawa Chemical Industries and its competitors. According to the industry distribution chart, Arakawa Chemical Industries ranks #280 out of 662 companies in the Chemicals industry, placing it in the top 42.3%.
Is Arakawa Chemical Industries' Forward PE Ratio too high?
Arakawa Chemical Industries' current Forward PE Ratio is 16.30. The Chemicals industry median Forward PE Ratio is 18.33. Arakawa Chemical Industries' value of 16.30 is 11.1% below this industry median. Based on the distribution chart, Arakawa Chemical Industries ranks #280 out of 662 companies in the Chemicals industry, which is above the industry midpoint. Overall, Arakawa Chemical Industries has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Arakawa Chemical Industries' Forward PE Ratio compare to LIN and SHW?
According to the Chemicals industry distribution chart, Arakawa Chemical Industries ranks #280 out of 662 companies for Forward PE Ratio. This puts Arakawa Chemical Industries in the upper half of its industry. The industry median Forward PE Ratio is 18.33. Arakawa Chemical Industries' value of 16.30 is 11.1% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Chemicals company?
The median Forward PE Ratio among Chemicals companies is 18.33, based on 662 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Arakawa Chemical Industries's current Forward PE Ratio of 16.30 is 11.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Arakawa Chemical Industries and its competitors. For the Chemicals industry, the median Forward PE Ratio is 18.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arakawa Chemical Industries's current Forward PE Ratio is 16.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arakawa Chemical Industries stock overvalued right now?
Based on GuruFocus' analysis, Arakawa Chemical Industries (TSE:4968) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,311.41, compared to a current price of 円2,465.00 — trading 88% above its estimated fair value. The current Forward PE Ratio is 16.30 and 11.1% below the Chemicals industry median of 18.33. Arakawa Chemical Industries' overall GF Score™ is 61/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Arakawa Chemical Industries (TSE:4968), the current Forward PE Ratio is 16.30 as of Aug. 14, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Arakawa Chemical Industries (TSE:4968) Overvalued in 2026?
Based on GuruFocus' analysis, Arakawa Chemical Industries stock appears to be overvalued.
The current stock price of 円2,465.00 is trading 88% above its estimated GF Value™ of 円1,311.41.
GuruFocus considers Arakawa Chemical Industries to be Significantly Overvalued.
Key valuation signals for TSE:4968:
Forward PE Ratio: 16.30
GF Value™: 円1,311.41 vs. price of 円2,465.00 (88% above fair value)
Industry Position: 11.1% below the Chemicals median (#280 of 662)
No single metric tells the full story. See the TSE:4968 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arakawa Chemical Industries Ltd is engaged in the production and sales of paper chemicals, resins for printing inks, resins for adhesives/adhesives, and intermediates for electronic materials. It manufactures various paper chemicals including water-repellents, sizing agents, paper surface improving agents, and paper strengthening, and other types of papers. It also provides printing inks for offset printing; book (magazine)-gravures and food-package-gravures. It also offers electronic materials, including rosins for use as raw material of chemicals and electronic components.
61GF Score
Get the complete analysis for TSE:4968
Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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