Does MediPal Holdings Still Offer Growth Potential After Its 13% Share Price Climb in 2025?

Thinking about what to do with your MediPal Holdings shares, or maybe eyeing them for the first time? You are not alone. This stock has quietly gained momentum, with a 13.4% jump year-to-date and a notable 54.0% climb over the last three years. Even compared to its five-year return of 43.3%, recent action stands out and hints at a shift in how investors perceive its growth and risk.

Lately, market watchers have tied some of this positive movement to broader improvements in the healthcare sector and increased demand for efficient pharmaceutical distribution. There has not been a “headline moment” driving up the price, but steady news about sector resilience may be helping the stock’s narrative catch on.

For anyone weighing their next step, the real question is value and whether MediPal is undervalued at its recent close of 2701.5. Our valuation score for the company is 4 out of a possible 6, based on multiple checks for undervaluation. That is a strong showing, suggesting the stock might still have room to run.

Let us break down which valuation methods offer the clearest picture and reveal how MediPal stacks up. And stay tuned, because there is an even more nuanced way to size up value that goes beyond the usual analyst playbook.

Why MediPal Holdings is lagging behind its peers

Approach 1: MediPal Holdings Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow (DCF) model estimates the intrinsic value of a company by projecting its future cash flows and discounting them back to their present value. This approach attempts to answer what the company is truly worth, based on the cash it is expected to generate over time.

For MediPal Holdings, the DCF model starts with a current Free Cash Flow (FCF) of ¥45 Billion. Analyst estimates are available for the next several years, with FCF expected to increase to around ¥45.8 Billion by 2028. Beyond that, further projections based on trends and analyst inputs suggest a gradual decline, reaching approximately ¥24 Billion by 2035. All figures are in Japanese yen, reflecting both analyst forecasts and reasonable extrapolation for outlying years.

This DCF model arrives at an estimated intrinsic value of ¥3,194 per share. Compared to the recent closing price of ¥2,701.5, this suggests that MediPal Holdings is trading at a 15.4% discount to its calculated fair value.

Bottom line: according to the DCF analysis, MediPal Holdings appears undervalued and could offer attractive upside potential for investors seeking value in the sector.

Result: UNDERVALUED

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for MediPal Holdings.

Story Continues 7459 Discounted Cash Flow as at Sep 2025 Our Discounted Cash Flow (DCF) analysis suggests MediPal Holdings is undervalued by 15.4%. Track this in your watchlist or portfolio, or discover more undervalued stocks.

Approach 2: MediPal Holdings Price vs Earnings

For profitable companies like MediPal Holdings, the Price-to-Earnings (PE) ratio is one of the most widely-used valuation tools. This metric tells investors how much they are paying for each yen of the company’s earnings, making it especially relevant when assessing businesses with steady profits and established market positions.

What counts as a “normal” or “fair” PE ratio can differ. A company with higher growth prospects or lower risk will typically command a higher multiple. Market sentiment, profit margins, and even the broader industry outlook all play into what investors are willing to pay for earnings.

Currently, MediPal Holdings trades at a PE ratio of 13.6x. In comparison, the average PE for its healthcare sector peers stands at 14.8x, and the industry overall averages 14.9x. These numbers suggest MediPal is valued a bit below both its immediate competition and the larger healthcare space.

Simply Wall St offers an additional perspective with its proprietary “Fair Ratio.” This custom benchmark takes into account not just peer and industry data, but also MediPal’s specific growth rates, profit margins, risks, and market cap. Instead of using a “one size fits all” approach, the Fair Ratio paints a truer picture of intrinsic value tailored to the company’s real situation.

For MediPal, the Fair Ratio is assessed at 17.9x. With the current PE at 13.6x, there is a sizable gap, suggesting the stock is trading at a meaningful discount to what would be considered fair based on all available metrics.

Result: UNDERVALUED

TSE:7459 PE Ratio as at Sep 2025 PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your MediPal Holdings Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives. A Narrative is your story behind the numbers. It is where you connect your perspective on a company to specific financial forecasts, and ultimately, to your own estimate of fair value. With Narratives, you decide what you believe about MediPal Holdings’ future revenue, earnings, and margins, and the tool translates your assumptions into a tailored fair value estimate.

Narratives are easy to use and accessible right within the Simply Wall St platform’s Community page, where millions of investors share and update their views. By linking the company’s story to financial forecasts and price, Narratives help you compare your calculated fair value to the current market price, making it easier to decide when to buy or sell.

Narratives update automatically as new data or news comes in, keeping your estimates timely and relevant. For instance, one investor might see MediPal Holdings as fairly priced only when it trades above ¥3,500, while another believes it is only a bargain under ¥2,400. With Narratives, you are equipped to make decisions based on your own informed outlook, not just simple ratios.

Do you think there's more to the story for MediPal Holdings? Create your own Narrative to let the Community know!

TSE:7459 Earnings & Revenue History as at Sep 2025 This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include 7459.

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