Canon Inc. (CAJPY) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Canon Inc. stock $55.37, price $29.54, upside +87.4%, quality 66 out of 100. Rating: strongly undervalued. Calculated from audited financials with 25 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 6, 2026.
How to read this chart
60‑month range $17.47 – $32.92 · fair‑value band $34.61 – $76.45 · the $29.54 price screens below the $55.37 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 6, 2026.
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Canon Inc., together with its subsidiaries, develops, produces, sells, and services various printing, medical, imaging, and industrial equipment in Japan, the Americas, Europe, Asia, and Oceania.
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It operates through four segments: Printing Business Unit, Medical Business Unit, Imaging Business Unit, and Industrial Business Unit.
The company offers digital continuous-feed and cut-sheet, large-format, and document and laser multifunction printers, as well as office multifunction devices, laser image scanners, calculators, and document solutions; and CT and ultrasound diagnostic scanners, x-ray diagnostic and MRI equipment, digital radiography, ophthalmology equipment, in-vitro diagnostic systems and reagents, and healthcare IT solutions.
It also provides interchangeable lens and compact digital cameras, lenses, compact photo printers, MR systems, network cameras, digital cinema and video cameras, and broadcasting equipment, as well as video management and image analysis software; and semiconductor and FPD exposure equipment, organic EL display manufacturing equipment, vacuum thin film deposition equipment, and die bonding equipment, as well as handheld terminals and document scanners.
In addition, the company offers functional and evaporation materials; optical paints, adhesives, and crystals; contact image sensors; printed wiring boards; vacuum components; microwave/power grid tubes; radiation detectors; and x-ray tubes, panel detectors, and image intensifiers.
It sells its products under the Canon brand name through resellers and distributors. The company was formerly known as Canon Camera Company, Inc. and changed its name to Canon Inc. in March 1969. Canon Inc. was founded in 1933 and is headquartered in Ota, Japan.
Stock analysis
Canon Inc. (CAJPY) currently trades at $29.54, while our model-based Fair Value estimate is $55.37, implying the stock looks roughly 47% undervalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of $78.96 per share, and 20 of the 25 models we run sit above the $29.54 price.
Bear case: the Asset-Based group reads lowest at $11.41, and 5 of the 25 models stay below the price. Data coverage for this calculation is high.
Scenario range: $34.61 (bear) to $76.45 (bull), the price of $29.54 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 66/100 (solid quality), in the Technology sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Canon Inc. reported revenue of ¥4.8T in FY2025 versus ¥3.5T in FY2021, a compound +8.4%/yr. Reported net income was ¥348B in FY2025, compounding +12.8%/yr from FY2021.
Key figures
Market cap $25.5B Large · P/E ratio 11.5 · P/S ratio 0.83 · EPS (TTM) $2.56 · Dividend yield 3.4% · Net margin 7.2% · Return on equity 11.0% · Return on assets (EBIT) 6.5% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 49 out of 100 (medium confidence).
What moves the price
The share trades about 7% below its 52-week high and 20% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Technology peers we cover trades at −6% fair-value upside, at 87%, CAJPY screens cheaper than that median.
Fair Value models
Bear$34.61Fair Value $55.37Bull$76.45
Price $29.54 · Upside +87.4%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($1.33 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.73/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+7.5%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+6.3%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+8.9%
Start year 2020 (pandemic). Over 10 years: +2.5% a year
Revenue growth 40 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+4.1%
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What shareholders gained per year (last 5 years), in JPY (mathematically smoothed) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Smoothed = median of all growth paths between the years of the window (trend line on the logarithm of earnings per share): a single extreme year cannot distort the rate. The reported figure stays in the tooltip. Measured in JPY: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+21.0%
Earnings growth per share plus dividend.
Earnings per share, growth per year+17.6%
Dividend (yield on the price)3.4%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.27.0% vs 6.7%, picking up
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.4% → 10%
2025 sits 63% above its own trend. The rate follows the median trend of the last 5 years, not that single year.
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
Price in line with expectations
The price assumes less growth than the company has delivered so far and about what analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+4.1%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+2.0%
Yearly sales growth analysts expect, extended to five years.
After inflation (figures in JPY, Japan: IMF forecast 2.1% a year to 2030, 1.3% from 2016 to 2025) that is about +1.9% a year for the price and −0.1% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (71 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Neutral
Recent news coverage is roughly neutral, about typical for how stocks are covered.
AI conclusion: Canon maintains steady revenue from its established printing hardware and supplies business, yet limited differentiation and unclear capital allocation discipline constrain its competitive edge.
Main risk: Canon supplies a significant portion of its laser printer engines and related products to HP under an OEM arrangement, so changes in HP's policies, purchasing or business results could reduce Canon's hardware and supplies volumes or force lower prices.
Bull case: Canon could leverage its new Connected Value Platform and AI-enhanced features to deepen integration into customer workflows, expand managed print services and offset volume declines with higher-value recurring revenue from optimization tools and supplies.
Bear case: If HP reduces reliance on Canon engines and paperless adoption accelerates, Canon's printing division could see sustained erosion of hardware sales and consumables margins, limiting scale of newer AI features on a shrinking base.
Canon’s printing business still generates the bulk of revenue through hardware and supplies. The new Connected Value Platform now layers generative AI tools onto those printers to automate document optimization and scanning workflows. Our models currently see the stock as undervalued. Will the AI features create a scalable software layer on top of the installed base, or will they mainly support existing hardware sales?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Computer Hardware · 213 stocks
Beats the industry median on 12/15 measures
Overall it ranks above its industry peers.
Valuation
Quality Score66 · Top 25%
Fair Value upside+87.4% · Top 25%
Profitability
Return on equity (12 months)11.0% · Above median
Return on assets5.7% · Above median
Net margin (12 months)7.6% · Above median
Operating margin (12 months)8.4% · Above median
Growth and dividend
Revenue growth (quarter YoY)4.9% · Below median
Dividend yield (12 months)3.4% · Above median
Balance sheet
Debt / equity0.09× · Above median
Valuation Multiplesvs Computer Hardware median · lower = cheaper
P/E (12 months)11.5× · Cheaper than median
P/B1.16× · Cheaper than median
P/S (12 months)0.85× · Cheaper than median
Price / free cash flow (fiscal year)18.0× · Cheaper than median
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Canon Inc. Fair Value". https://www.fairvalue-calculator.com/stock/CAJPY
Frequently asked questions
Is Canon Inc. (CAJPY) overvalued or undervalued?
As of Nov 6, 2026, our model estimates a fair value of $55.37 versus a price of $29.54, about +87% upside (undervalued).
What is the fair value of CAJPY?
Our model-based fair value for Canon Inc. is $55.37 (as of Nov 6, 2026), built from audited fundamentals. The current price: $29.54.
What is the quality score of CAJPY?
Canon Inc. has a Quality Score of 66/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Canon Inc. (CAJPY)?
Our model-based price target is the fair value of $55.37 (as of Nov 6, 2026) from 25 valuation models. Cautious scenario $34.61, optimistic scenario $76.45. It is a calculation from audited fundamentals, not an analyst target.
What is the Canon Inc. stock forecast for 2026?
Our models put fair value at $55.37, about +87% upside versus a price of $29.54 (undervalued). Cautious scenario $34.61, optimistic scenario $76.45. The calculation is refreshed regularly with new filings.
What is the revenue of Canon Inc. (CAJPY)?
Canon Inc. reported trailing-twelve-month revenue of about ¥4.8T (latest available figure, as of Nov 6, 2026).
Does Canon Inc. pay a dividend?
Canon Inc. currently shows a dividend yield of 3.42% relative to its recent price (as of Nov 6, 2026).
How much is the dividend of Canon Inc. (CAJPY) and when is the ex-dividend date?
Canon Inc. pays a dividend of $1.01 per share a year, a dividend yield of 3.4%. The last ex-dividend date was Jun 29, 2026. A dividend has been paid every year since at least 1986. The payout ratio is 38.3% of earnings. Free cash flow covers the dividend 1.68 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into Canon Inc. (CAJPY)?
For today's price to be fair in a discounted-cash-flow model, Canon Inc. would have to grow free cash flow by +4.1 % per year for five years (discount rate 8.1 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +8.9 % per year. As of Nov 6, 2026.
What discount rate (WACC) does the fair value of CAJPY use?
Our models discount Canon Inc. at 8.1 %: a base by market capitalisation (large), damped by beta 0.28, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Canon Inc. that is +4.1 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (8.1 %) and the same formula as our fair value.
How much growth has Canon Inc. (CAJPY) delivered so far?
Over the past 5 years revenue at Canon Inc. grew +8.9 % a year. The price currently implies free-cash-flow growth of +4.1 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Canon Inc. (CAJPY) growing?
The median revenue growth in the sector is +11.5 % a year. That is the yardstick for the growth priced into Canon Inc. (+4.1 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Canon Inc. (CAJPY)?
The free-cash-flow yield on the price is 5.54 %: that much free cash flow Canon Inc. produces per unit of market value. When it exceeds the discount rate of our models (8.1 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Canon Inc. (CAJPY)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Canon Inc. it is $55.37 per share (as of Nov 6, 2026), against a price of $29.54. It is the blended result of 25 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is Canon Inc. stock overvalued or undervalued in 2026?
As of Nov 6, 2026, CAJPY trades below its calculated fair value: price $29.54, fair value $55.37, a gap of about +87% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of CAJPY?
No. The price is what the market pays today ($29.54); the fair value is what the company's own numbers justify ($55.37). For Canon Inc. the two are $25.83 per share apart. That gap is exactly why we show both numbers side by side.
How much is Canon Inc. worth?
The market values Canon Inc. at about $25.5B (market capitalisation, as of Nov 6, 2026). Per share that is $29.54; our models calculate a fair value of $55.37 per share.
What do the bullish and bearish scenarios say about CAJPY?
Our models span a range for Canon Inc.: cautious scenario $34.61, base $55.37, optimistic $76.45 per share (as of Nov 6, 2026, price $29.54). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of CAJPY?
Canon Inc. trades at a price-to-earnings ratio of 11.5 (as of Nov 6, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $55.37 is built from several models across several years. Other multiples: PEG 2.9, P/B 1.2, P/S 0.9, EV/EBITDA 5.2.
What is the PEG ratio of CAJPY?
The PEG ratio of Canon Inc. is 2.93 (P/E divided by earnings growth, as of Nov 6, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Canon Inc. (CAJPY)?
Balance-sheet figures for Canon Inc. (as of Nov 6, 2026): return on equity 11.0%, debt of 0.09 per unit of equity. They feed the Quality Score of 66/100, which measures business quality independently of the share price.
How far is CAJPY from its 52-week high?
Canon Inc. trades at $29.54, about 7% below its 52-week high of $31.62 and 20% above the low of $24.67 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $55.37 is for.
Which stocks are comparable to Canon Inc.?
From the same area (Technology) we also value Dell Technologies Inc, Arista Networks, Inc, Sandisk Corporation, Seagate Technology Holdings, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Canon Inc. stock attractive at the current price?
The data as of Nov 6, 2026: price $29.54, calculated fair value $55.37 (+87%), Quality Score 66/100, from 25 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of CAJPY calculated?
We run Canon Inc. through 25 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $55.37 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.0% above its aggregate fair value. Canon Inc. currently trades 47% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Canon Inc. (CAJPY)?
The closing price on Nov 6, 2026 was $29.54. Our model-based fair value is $55.37, about +87% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Canon Inc. right now?
The price is below even our cautious bear case ($34.61). The market is more pessimistic than our downside scenario. Solid quality (66/100) at a price below fair value, the discount is the argument here, not the business quality. A fairly wide model range ($34.61 to $76.45) leaves room in how you read the outcome.
Where does the earnings growth of Canon Inc. (CAJPY) come from?
Earnings per share at Canon Inc. grew +3.9 % a year from 2014 to 2025. Broken into its drivers: revenue per share +4.0 %, EBIT margin −0.3 %, tax rate +0.4 %, residual (interest, one-offs) −0.1 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Canon Inc.
How large is the market capitalisation of Canon Inc. (CAJPY)?
The market capitalisation of Canon Inc. is $25.5B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Canon Inc. (CAJPY)?
The price-to-sales ratio of Canon Inc. is 0.83 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Canon Inc. (CAJPY)?
Earnings per share at Canon Inc. are $2.56 (price ÷ EPS = P/E 11.5). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Canon Inc. (CAJPY)?
The dividend yield of Canon Inc. is 3.4% (payout 39.5%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Canon Inc. (CAJPY)?
The net margin of Canon Inc. is 7.2% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Canon Inc. (CAJPY)?
The return on equity (ROE) of Canon Inc. is 11.0% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Canon Inc. (CAJPY)?
On an EBIT basis the return on assets of Canon Inc. is 6.5% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Canon Inc. (CAJPY)?
The operating margin of Canon Inc. is 8.4% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Canon Inc. (CAJPY)?
Revenue at Canon Inc. is growing +4.9% versus a year earlier (3y avg +6.3%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Canon Inc. (CAJPY)?
Earnings per share at Canon Inc. are growing +25.2% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Canon Inc. (CAJPY) carry?
The net debt of Canon Inc. is ¥360B (fiscal year 2025, ≈ 1.6 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 6, 2026