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Arakawa Chemical IndustriesTSE:4968 +0.78%63 PE Ratio without NRI is 19.88 as of Jul. 15, 2026, which is 65% above its 10-year median of 12.02. GuruFocus rates TSE:4968 with a GF Score™ of 63/100 and a GF Value™ of 円1,216.22 (Significantly Overvalued). The stock has 11 warning signs investors should review. Among 1,180 Chemicals companies, Arakawa Chemical Industries ranks better than 56.69% on this metric.
The PE Ratio without NRI, or P/E Ratio without non-recurring items, is a financial ratio used to compare a company's market price to its EPS without NRI. As of today (2026-07-15), Arakawa Chemical Industries's share price is 円2193.00.
Arakawa Chemical Industries's EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2026 was 円110.30. Therefore, Arakawa Chemical Industries's PE Ratio without NRI for today is 19.88.
During the past 13 years, Arakawa Chemical Industries's highest PE Ratio without NRI was 27.56. The lowest was 6.88. And the median was 12.02.
Arakawa Chemical Industries (TSE:4968) PE Ratio without NRI Explanation
The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.
In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.
If a company loses money, the PE Ratio becomes meaningless.
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.
Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.
Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratio s are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio.
Arakawa Chemical Industries PE Ratio without NRI Related Terms
Arakawa Chemical Industries PE Ratio without NRI 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 PE Ratio without NRI Chart
TSE:4968 vs LIN, SHW, ECL: PE Ratio without NRI Comparison
For the Specialty Chemicals subindustry, Arakawa Chemical Industries's PE Ratio without NRI, along with its competitors' market caps and PE Ratio without NRI 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 PE Ratio without NRI vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Arakawa Chemical Industries's PE Ratio without NRI distribution charts can be found below:
* The bar in red indicates where Arakawa Chemical Industries's PE Ratio without NRI falls into.
Arakawa Chemical Industries PE Ratio without NRI Calculation
The PE Ratio without NRI, or P/E Ratio without non-recurring items, is a financial ratio used to compare a company's market price to its EPS without NRI. Regular 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 regular PE Ratio.
Arakawa Chemical Industries's Share Price of today is 円2193.00.
For company reported semi-annually, Arakawa Chemical Industries's EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2026 adds up the semi-annually data reported by the company within the most recent 12 months, which was 円110.30.
* 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.
There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio, Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.
In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.
In the calculation of PE Ratio (TTM), the earnings per share used are the earnings per share over the past 12 months.
For Forward PE Ratio, the earnings are the expected earnings for the next twelve months.
For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.
Arakawa Chemical Industries (TSE:4968) has a PE Ratio without NRI of 19.88 as of Jul. 15, 2026. P/E without nonrecurring items is the ratio of share price to a company's earnings less one-time charges. View historical data on Arakawa Chemical Industries and its competitors. This is 65% above median its historical median of 12.02. Over the past decade, Arakawa Chemical Industries' PE Ratio without NRI has ranged from 6.88 to 27.56. According to the industry distribution chart, Arakawa Chemical Industries ranks #511 out of 1180 companies in the Chemicals industry, placing it in the top 43.3%.
Is Arakawa Chemical Industries' PE Ratio without NRI too high?
Arakawa Chemical Industries' current PE Ratio without NRI of 19.88 is 65% above median its 10-year median of 12.02. Over the past 10 years, this metric has ranged from a low of 6.88 to a high of 27.56. The Chemicals industry median PE Ratio without NRI is 23.61. Arakawa Chemical Industries' value of 19.88 is 15.8% below this industry median. Based on the distribution chart, Arakawa Chemical Industries ranks #511 out of 1180 companies in the Chemicals industry, which is above the industry midpoint. Overall, Arakawa Chemical Industries has a GF Score™ of 63/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Arakawa Chemical Industries' PE Ratio without NRI compare to LIN and SHW?
According to the Chemicals industry distribution chart, Arakawa Chemical Industries ranks #511 out of 1180 companies for PE Ratio without NRI. This puts Arakawa Chemical Industries in the upper half of its industry. The industry median PE Ratio without NRI is 23.61. Arakawa Chemical Industries' value of 19.88 is 15.8% below this benchmark. Historically, Arakawa Chemical Industries' own PE Ratio without NRI has ranged from 6.88 to 27.56 over the past decade. While the company's 10-year median is 12.02 vs. the industry median of 23.61, Arakawa Chemical Industries has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good PE Ratio without NRI for a Chemicals company?
The median PE Ratio without NRI among Chemicals companies is 23.61, based on 1,180 companies in the industry. Companies in the top quartile (top 25%) have a PE Ratio without NRI significantly above this median, while those in the bottom quartile fall well below. However, PE Ratio without NRI should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Arakawa Chemical Industries's current PE Ratio without NRI of 19.88 is 15.8% 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 PE Ratio without NRI mean?
A high PE Ratio without NRI can signal that a stock is expensive relative to its fundamentals. P/E without nonrecurring items is the ratio of share price to a company's earnings less one-time charges. View historical data on Arakawa Chemical Industries and its competitors. For the Chemicals industry, the median PE Ratio without NRI is 23.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arakawa Chemical Industries's current PE Ratio without NRI is 19.88, which is 65% above median its own 10-year median of 12.02. 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1,216.22, compared to a current price of 円2,193.00 — trading 80.3% above its estimated fair value. The current PE Ratio without NRI is 19.88, which is 65% above median its 10-year median of 12.02 and 15.8% below the Chemicals industry median of 23.61. Arakawa Chemical Industries' overall GF Score™ is 63/100 with 11 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PE Ratio without NRI calculated?
PE Ratio without NRI is calculated from a company's financial statements. For Arakawa Chemical Industries (TSE:4968), the current PE Ratio without NRI is 19.88 as of Jul. 15, 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2,193.00 is trading 80.3% above its estimated GF Value™ of 円1,216.22.
GuruFocus considers Arakawa Chemical Industries to be Significantly Overvalued.
Key valuation signals for TSE:4968:
PE Ratio without NRI: 19.88 (65% above median its 10-year median of 12.02)
GF Value™: 円1,216.22 vs. price of 円2,193.00 (80.3% above fair value)
Industry Position: 15.8% below the Chemicals median (#511 of 1180)
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.
63GF Score
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