Denso Corp (DNZOY) fair value: what the stock is really worth
As of Oct 22, 2026: fair value (intrinsic value) of Denso Corp stock $14.15, price $11.73, upside +20.6%, quality 62 out of 100. Rating: undervalued. Calculated from audited financials with 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, dashed = 300-day average. As of Oct 22, 2026.
How to read this chart
60‑month range $10.06 – $18.33 · fair‑value band $8.57 – $20.56 · the $11.73 price screens below the $14.15 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Oct 22, 2026.
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DENSO Corporation engages in the manufacture and sale of automotive parts in Japan, Rest of Asia, North America, Europe, and internationally.
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The company offers air-conditioning systems, including thermal management heat pump system, heat pump air-conditioning systems, personal heating and cooling devices, air quality system, heat exchangers, bus air-conditioning systems, automotive freezers, products of control systems, pickup systems, and cooling products, as well as heating, ventilation, and air-conditioning units.
It also provides gasoline, diesel, hybrid, electric vehicle, and fuel cell vehicle power-train systems; and safety and cockpit systems, such as driving environment recognition, vehicle dynamic control, collision safety, visibility support, cockpit information, and information security systems, as well as other products.
In addition, the company offers automotive service parts and accessories, comprising spark plugs, oil and cabin air filters, wiper blades, air filter elements, starters, alternators, compressors, oxygen sensors, fuel pumps, air conditioner service parts, radiators, condensers, plasmacluster ion generators, air conditioners for busses and construction vehicles, and truck refrigeration products, as well as refrigerant recovery, recycling, and charging machines; and repair and support products and services.
Further, the company provides industrial solutions for factories in automotive parts production; agricultural solutions, including Profarm Controller, a climate control system for greenhouse and horticulture solutions; and home energy management system, co2 refrigerant heat-pumps and industrial systems.
DENSO Corporation was incorporated in 1949 and is headquartered in Kariya, Japan.
Stock analysis
Denso Corp (DNZOY) currently trades at $11.73, while our model-based Fair Value estimate is $14.15, implying the stock looks roughly 17.1% undervalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of $26.31 per share, and 19 of the 26 models we run sit above the $11.73 price.
Bear case: the Asset-Based group reads lowest at $2.31, and 7 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: $8.57 (bear) to $20.56 (bull), the price of $11.73 sits inside 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 62/100 (solid quality), in the Consumer Cyclical sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Denso Corp ADR reported revenue of ¥8.0T in FY2026 versus ¥5.5T in FY2022, a compound +9.7%/yr. Reported net income was ¥471B in FY2026, compounding +15.6%/yr from FY2022.
Key figures
Market cap $31.2B Large · P/E ratio 11.6 · P/S ratio 0.68 · EPS (TTM) $1.01 · Dividend yield 3.6% · Net margin 5.9% · Return on equity 9.2% · Return on assets (EBIT) 5.5%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 52 out of 100 (medium confidence).
What moves the price
The share trades about 18% below its 52-week high and 7% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at −24% fair-value upside, at 21%, DNZOY screens cheaper than that median.
Fair Value models
Bear$8.57Fair Value $14.15Bull$20.56
Price $11.73 · Upside +20.6%
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 2026 figures (about 7 months old). Earnings retained since then ($0.3290 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.67/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+11.6%
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.
+7.7%
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.
+10.1%
Start year 2021 (pandemic). Over 10 years: +5.9% a year
Revenue growth 26 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.
+5.7%
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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.
+25.5%
Earnings growth per share plus dividend.
Earnings per share, growth per year+21.9%
Dividend (yield on the price)3.6%
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.34.4% vs 7.3%, picking up
Profit margin 2021 to 2026 ⓘ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.3% → 8%
2026 sits 68% 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 2021 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than 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).
+13.2%
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.
+2.4%
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 +10.9% a year for the price and +0.3% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (96 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: Scale in the auto supply chain delivers moderate moat signals and solid cash metrics, yet modest margins together with limited distinctive advantages visible in public data remain the core constraint on business quality.
Main risk: Retaining combustion-component operations while peers redirect resources into electrification risks slower adaptation to faster regional regulatory shifts, reducing demand for the kept product lines.
Denso has canceled the transfer of its spark plug and exhaust sensor business to Niterra after concluding that demand for a mix of powertrains will last longer than expected due to regional differences in energy and regulations. Keeping these operations in-house supports its ability to meet diverse customer needs as electrification proceeds at an uneven pace. Our models currently see the stock as undervalued. Does holding on to combustion components give it a stronger edge than focusing resources solely on chips and advanced systems?
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.Auto Parts · 652 stocks
Beats the industry median on 11/15 measures
Overall it ranks above its industry peers.
Valuation
Quality Score62 · Top 25%
Fair Value upside+20.6% · Above median
Profitability
Return on equity (12 months)9.2% · Above median
Return on assets5.4% · Above median
Net margin (12 months)5.6% · Above median
Operating margin (12 months)4.4% · Below median
Growth and dividend
Revenue growth (quarter YoY)9.1% · Above median
Dividend yield (12 months)3.6% · Above median
Balance sheet
Debt / equity0.10× · Above median
Valuation Multiplesvs Auto Parts median · lower = cheaper
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.
As of Oct 22, 2026, our model estimates a fair value of $14.15 versus a price of $11.73, about +21% upside (undervalued).
What is the fair value of DNZOY?
Our model-based fair value for Denso Corp ADR is $14.15 (as of Oct 22, 2026), built from audited fundamentals. The current price: $11.73.
What is the quality score of DNZOY?
Denso Corp ADR has a Quality Score of 62/100. 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 Denso Corp (DNZOY)?
Our model-based price target is the fair value of $14.15 (as of Oct 22, 2026) from 26 valuation models. Cautious scenario $8.57, optimistic scenario $20.56. It is a calculation from audited fundamentals, not an analyst target.
What is the Denso Corp ADR stock forecast for 2026?
Our models put fair value at $14.15, about +21% upside versus a price of $11.73 (undervalued). Cautious scenario $8.57, optimistic scenario $20.56. The calculation is refreshed regularly with new filings.
What is the revenue of Denso Corp (DNZOY)?
Denso Corp ADR reported trailing-twelve-month revenue of about ¥7.7T (latest available figure, as of Oct 22, 2026).
Does Denso Corp ADR pay a dividend?
Denso Corp ADR currently shows a dividend yield of 3.64% relative to its recent price (as of Oct 22, 2026).
What growth is priced into Denso Corp (DNZOY)?
For today's price to be fair in a discounted-cash-flow model, Denso Corp ADR would have to grow free cash flow by +13.2 % per year for five years (discount rate 8.3 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +10.1 % per year. As of Oct 22, 2026.
What discount rate (WACC) does the fair value of DNZOY use?
Our models discount Denso Corp ADR at 8.3 %: a base by market capitalisation (large), damped by beta 0.61, 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 Denso Corp ADR that is +13.2 % per year a year over ten years, using the same discount rate (8.3 %) and the same formula as our fair value.
How much growth has Denso Corp (DNZOY) delivered so far?
Over the past 5 years revenue at Denso Corp ADR grew +10.1 % a year. The price currently implies +13.2 % per year free-cash-flow growth a 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 Denso Corp (DNZOY) growing?
The median revenue growth in the sector is +4.3 % a year. That is the yardstick for the growth priced into Denso Corp ADR (+13.2 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Denso Corp (DNZOY)?
The free-cash-flow yield on the price is 3.05 %: that much free cash flow Denso Corp ADR produces per unit of market value. When it exceeds the discount rate of our models (8.3 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Denso Corp (DNZOY)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Denso Corp ADR it is $14.15 per share (as of Oct 22, 2026), against a price of $11.73. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Denso Corp ADR stock overvalued or undervalued in 2026?
As of Oct 22, 2026, DNZOY trades below its calculated fair value: price $11.73, fair value $14.15, a gap of about +21% (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 DNZOY?
No. The price is what the market pays today ($11.73); the fair value is what the company's own numbers justify ($14.15). For Denso Corp ADR the two are $2.42 per share apart. That gap is exactly why we show both numbers side by side.
How much is Denso Corp ADR worth?
The market values Denso Corp ADR at about $31.2B (market capitalisation, as of Oct 22, 2026). Per share that is $11.73; our models calculate a fair value of $14.15 per share.
What do the bullish and bearish scenarios say about DNZOY?
Our models span a range for Denso Corp ADR: cautious scenario $8.57, base $14.15, optimistic $20.56 per share (as of Oct 22, 2026, price $11.73). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of DNZOY?
Denso Corp ADR trades at a price-to-earnings ratio of 11.6 (as of Oct 22, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $14.15 is built from several models across several years. Other multiples: PEG 2.5, P/B 0.9, P/S 0.6, EV/EBITDA 4.7.
What is the PEG ratio of DNZOY?
The PEG ratio of Denso Corp ADR is 2.46 (P/E divided by earnings growth, as of Oct 22, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Denso Corp (DNZOY)?
Balance-sheet figures for Denso Corp ADR (as of Oct 22, 2026): return on equity 9.2%, debt of 0.10 per unit of equity. They feed the Quality Score of 62/100, which measures business quality independently of the share price.
How far is DNZOY from its 52-week high?
Denso Corp ADR trades at $11.73, about 18% below its 52-week high of $14.36 and 7% above the low of $10.98 (as of Oct 22, 2026). Distance from the high says nothing about value: that is what the fair value of $14.15 is for.
Which stocks are comparable to Denso Corp ADR?
From the same area (Consumer Cyclical) we also value O'Reilly Automotive, Inc, AutoZone, Inc, Hyundai Mobis Co, Fuyao Glass Industry Group, 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 Denso Corp ADR stock attractive at the current price?
The data as of Oct 22, 2026: price $11.73, calculated fair value $14.15 (+21%), Quality Score 62/100, from 26 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 DNZOY calculated?
We run Denso Corp ADR through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $14.15, 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 13.2 % above its aggregate fair value. Denso Corp ADR currently trades 17 % 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 Denso Corp (DNZOY)?
The closing price on Oct 22, 2026 was $11.73. Our model-based fair value is $14.15, about +21% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Denso Corp ADR right now?
Solid quality (62/100) at a price below fair value, the discount is the argument here, not the business quality. A fairly wide model range ($8.57 to $20.56) leaves room in how you read the outcome.
Where does the earnings growth of Denso Corp (DNZOY) come from?
Earnings per share at Denso Corp ADR grew +5.6 % a year from 2015 to 2026. Broken into its drivers: revenue per share +6.2 %, EBIT margin −1.4 %, tax rate +0.7 %, 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 Denso Corp ADR
How large is the market capitalisation of Denso Corp (DNZOY)?
The market capitalisation of Denso Corp ADR is $31.2B. 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 Denso Corp (DNZOY)?
The price-to-sales ratio of Denso Corp ADR is 0.68 (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 Denso Corp (DNZOY)?
Earnings per share at Denso Corp ADR are $1.01 (price ÷ EPS = P/E 11.6). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Denso Corp (DNZOY)?
The dividend yield of Denso Corp ADR is 3.6% (payout 42.3%). 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 Denso Corp (DNZOY)?
The net margin of Denso Corp ADR is 5.9% (fiscal year 2026). 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 Denso Corp (DNZOY)?
The return on equity (ROE) of Denso Corp ADR is 9.2% (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 Denso Corp (DNZOY)?
On an EBIT basis the return on assets of Denso Corp ADR is 5.5% (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 Denso Corp (DNZOY)?
The operating margin of Denso Corp ADR is 4.4% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Denso Corp (DNZOY)?
Revenue at Denso Corp ADR is growing +9.1% versus a year earlier (3y avg +7.7%). 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 Denso Corp (DNZOY)?
Earnings per share at Denso Corp ADR are growing −10.5% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Denso Corp (DNZOY) hold?
Denso Corp ADR holds more cash than debt, ¥379B net (fiscal year 2026). The company holds more cash than debt, a safety cushion.
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Broad data
Oct 22, 2026