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Canon Inc (CAJPY) Fair Value & Analysis

Technology · US · Market cap $23.3B

CI Canon Inc logo Canon Inc CAJPY · US
Price$29.48
Fair Value$44.23
Upside+50.0%
Quality65/100
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Healthy Growth
Thin margins · 6.6% net margin
Low debt · generates free cash flow
3.87% dividend yield
Ranks above peers (9/12)
Narrow moat 36/100
Evidence: Medium Range $28.31 – $63.17 Share as image

Fair value as of: Jul 15, 2026

From 23 valuation models · updated 26 days ago

Share price +11.3% over the past month.

A solid business, screening 50% undervalued on our models.

What matters now

  • Solid quality (65/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range ($28.31 to $63.17) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

$33.56 $17.81 Fair Value $44.23 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 15, 2026.

How to read this chart

60‑month range $17.81 – $33.56 · fair‑value band $28.31 – $63.17 · the $29.48 price screens below the $44.23 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 15, 2026.

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Analysis

Canon Inc (CAJPY) currently trades at $29.48, while our model-based Fair Value estimate is $44.23, implying the stock looks roughly 50.0% undervalued today. The Quality Score stands at 65/100 (solid quality), in the Technology sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, Canon Inc generated revenue of $4.7T at a net margin of 6.6%. Revenue grew 3.3% year over year. It earns a return on equity of 9.4%. Net debt stands at $360B. Fundamentals as of Jul 15, 2026

Our scenario range runs from $28.31 (bear case) to $63.17 (bull case); at $29.48, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 8% below its 52-week high and 17% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at -67% fair-value upside, at 50%, CAJPY screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF $20.78 $28.19 $38.29 80
Rev-Margin DCF $28.41 $44.28 $61.10 74
ROIC Compounder $27.41 $33.04 $39.54 72
All 23 models by family
DCF Models
FCF DCF $20.24 $28.19 $39.51 38
Owner Earnings $28.32 $39.82 $56.19 31
5Y Revenue Exit $28.41 $44.23 $63.86 39
5Y EBITDA Exit $38.76 $62.59 $89.36 41
5Y P/E Exit $30.81 $48.49 $66.12 38
10Y Revenue Exit $24.23 $37.78 $54.76 36
10Y EBITDA Exit $31.64 $50.18 $73.31 37
10Y P/E Exit $26.67 $40.65 $56.40 35
Earnings-Based
Graham-Dodd $17.99 $41.64 $53.48 54
PEG = 1.0 $7.04 $10.05 $13.07 46
EPV $27.29 $31.48 $35.15 59
Multiples
P/E Multiple $39.68 $52.91 $66.14 63
P/S Multiple $33.73 $44.97 $56.21 58
P/B Multiple $33.73 $44.97 $56.21 55
EV/EBIT $51.12 $67.44 $83.77 53
EV/EBITDA $56.09 $74.08 $92.07 54
EV/Revenue $35.15 $49.30 $63.45 43
Asset-Based
NCAV (Graham) $13.28 $17.79 $26.55 50
Growth DCF
Growth DCF $20.78 $28.19 $38.29 80
Rev-Margin DCF $28.41 $44.28 $61.10 74
Economic Profit
Residual Income $23.32 $25.92 $40.64 61
ROIC Compounder $27.41 $33.04 $39.54 72
Growth Earnings
Growth-Adj P/E $30.01 $42.87 $55.73 68

Widest divergence: Multiples ($49.30) versus Asset-Based ($17.79). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $4.7T
Revenue growth (YoY) +3.3%
Net margin 6.6%
Return on equity 9.4%
Free cash flow $224B FY2025
P/E ratio 11.9
More key figures
Operating margin 6.5%
EPS (TTM) $2.30
Dividend yield 3.9%
EPS growth (YoY) -28.6%
Net debt $360B FY2025

Figures from reported company fundamentals · as of Jul 15, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 65/100

Of which business quality 63 · Market factors (momentum, volatility) 59

Profitability 50
Margins and returns on capital today
Quality Growth 61
Are margins and returns improving?
Cashflow 39
Earnings quality: real cash, not paper profit
Fin. Strength 72
Balance sheet, leverage, solvency risk
Investment 76
Disciplined investing over empire-building
Low Volatility 93
Calm price path (market factor)
Momentum 42
Price trend over the last 3–12 months (market factor)
52W Momentum 51
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

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. It operates through four segments: Printing Business Unit, Medical Business Unit, Imaging Business Unit, and Industrial Business Unit.

Full company description

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. 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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

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.

Growth Quality 73/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
$4.8T
Latest YoY
+7.5%
Avg. growth/yr (3Y)
+6.3%
Avg. growth/yr (5Y)
+8.9%
Avg. growth/yr (40Y)
+4.1%
Revenue +8.4%/yr
FY21 $3.5T
FY22 $4.0T
FY23 $4.2T
FY24 $4.5T
FY25 $4.8T
Net income +12.8%/yr
FY21 $215B
FY22 $244B
FY23 $265B
FY24 $160B
FY25 $348B

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Cite: Fair Value Calculator (2026). "Canon Inc Fair Value". https://www.fairvalue-calculator.com/stock/CAJPY

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Computer Hardware · 215 stocks

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.

Quality Score 65 · Top 25%
Fair Value upside +50% · Top 25%
Return on equity (TTM) 9% · Above median
Return on assets 5% · Above median
Net margin (TTM) 7% · Above median
Operating margin (TTM) 7% · Above median
Revenue growth 3% · Below median
Dividend yield (TTM) 3.9% · Above median
Debt / equity 0.09× · Higher than median

Valuation Multiples vs Computer Hardware median · lower = cheaper

P/E (TTM) 11.9× · Cheaper than 75% of peers
P/FCF 0.1× · Cheaper than 75% of peers
PEG 2.93× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 0
FUTURE 17 · sector 57
PAST 37 · sector 26
HEALTH 96 · sector 97
DIVIDEND 77 · sector 44

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Computer Hardware stocks, each showing price versus our Fair Value estimate (as of Jul 15, 2026).

Stock Price Fair Value vs Fair Value
Compal Electronics, Inc CEIR $0.0310 $0.0276 -11%
Dell Technologies Inc DELL $434.97 $163.87 -62%
Arista Networks, Inc ANET $168.56 $43.74 -74%
Western Digital Corporation WDC $513.84 $74.05 -86%
Wiwynn Corporation 6669 4,685 TWD 1,559 TWD -67%
Hangzhou Hikvision Digital Technology Co 002415 ¥34.12 ¥30.11 -12%
Quanta Computer Inc 2382 373.50 TWD 297.22 TWD -20%
Shenzhen Longsys Electronics Co 301308 ¥587.60 ¥60.86 -90%
Lenovo Group 0992 HK$23.16 HK$3.07 -87%
Dawning Information Industry Co 603019 ¥106.13 ¥28.88 -73%

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Frequently asked questions

Is Canon Inc (CAJPY) overvalued or undervalued?
As of Jul 15, 2026, our model estimates a fair value of $44.23 versus a price of $29.48, about +50% (undervalued).
What is the fair value of CAJPY?
Our model-based fair value for Canon Inc is $44.23 (as of Jul 15, 2026), built from audited fundamentals. The current price is $29.48.
What is the quality score of CAJPY?
Canon Inc has a Quality Score of 65/100. 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 revenue of Canon Inc (CAJPY)?
Canon Inc reported trailing-twelve-month revenue of about $4.7T (latest available figure, as of Jul 15, 2026).
What is the net profit margin of CAJPY?
The net profit margin of Canon Inc is about 6.6%, meaning it keeps roughly 6.6% of revenue as net income. Based on the latest reported figures.
Does Canon Inc pay a dividend?
Canon Inc currently shows a dividend yield of about 3.87% relative to its recent price (as of Jul 15, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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