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Japan Pulp and Paper Company (JPPPF) Fair Value & Analysis

Basic Materials · US · Market cap $511M

JP Japan Pulp and Paper Company logo Japan Pulp and Paper Company JPPPF · US
Price$4.64
Fair Value$7.42
Upside+60.0%
Quality40/100
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Healthy Growth
Thin margins · 0.8% net margin
Low debt · generates free cash flow
4.07% dividend yield
Ranks above peers (7/11)
Narrow moat 29/100
Evidence: High Range $5.56 – $9.28 Share as image

Fair value as of: Jul 25, 2026

From 23 valuation models · updated 16 days ago

Below-average quality, screening 60% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (40/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case ($5.56). The market is more pessimistic than our downside scenario.
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Price vs Fair Value (17 months)

$4.64 $3.53 Fair Value $7.42 Mar 2025 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 25, 2026.

How to read this chart

17‑month range $3.53 – $4.64 · fair‑value band $5.56 – $9.28 · the $4.64 price screens below the $7.42 fair value. Dashed = 300-day average. As of Jul 25, 2026.

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Analysis

Japan Pulp and Paper Company (JPPPF) currently trades at $4.64, while our model-based Fair Value estimate is $7.42, implying the stock looks roughly 60.0% undervalued today. The Quality Score stands at 40/100 (below-average quality), in the Basic Materials 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: high), always confirm before acting.

Over the trailing twelve months, Japan Pulp and Paper Company generated revenue of $607B at a net margin of 0.8%. Revenue grew 10.0% year over year. It earns a return on equity of 4.2%. Net debt stands at $79.5B. Fundamentals as of Jul 25, 2026

Our scenario range runs from $5.56 (bear case) to $9.28 (bull case); at $4.64, the current price sits below 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 near its 52-week high and 31% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at 10% fair-value upside, at 60%, JPPPF 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 $7.58 $10.29 $13.53 80
Rev-Margin DCF $6.86 $10.60 $14.70 74
ROIC Compounder $4.59 $5.31 $5.90 72
All 23 models by family
DCF Models
FCF DCF $7.46 $10.47 $14.25 38
Owner Earnings $5.60 $7.92 $10.84 31
5Y Revenue Exit $6.86 $10.50 $14.97 39
5Y EBITDA Exit $9.54 $15.33 $21.83 41
5Y P/E Exit $5.91 $8.79 $11.65 38
10Y Revenue Exit $6.85 $9.97 $13.83 36
10Y EBITDA Exit $8.57 $12.97 $18.44 37
10Y P/E Exit $6.49 $8.91 $11.60 35
Earnings-Based
Graham-Dodd $2.85 $7.17 $9.31 54
PEG = 1.0 $1.32 $1.89 $2.45 46
EPV $4.59 $5.31 $5.90 59
Multiples
P/E Multiple $6.29 $8.38 $10.48 63
P/S Multiple $5.34 $7.12 $8.90 58
P/B Multiple $5.34 $7.12 $8.90 55
EV/EBIT $10.58 $14.33 $18.09 53
EV/EBITDA $12.67 $17.13 $21.58 54
EV/Revenue $6.91 $10.16 $13.41 43
Asset-Based
NCAV (Graham) $4.03 $5.40 $8.06 50
Growth DCF
Growth DCF $7.58 $10.29 $13.53 80
Rev-Margin DCF $6.86 $10.60 $14.70 74
Economic Profit
Residual Income $5.84 $5.78 $5.18 61
ROIC Compounder $4.59 $5.31 $5.90 72
Growth Earnings
Growth-Adj P/E $4.87 $6.96 $9.05 68

Widest divergence: Growth DCF ($10.29) versus Earnings-Based ($5.31). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $607B
Revenue growth (YoY) +10.0%
Net margin 0.8%
Return on equity 4.2%
Free cash flow $16.4B FY2025
P/E ratio 11.0
More key figures
Operating margin 2.0%
EPS (TTM) $0.4200
Dividend yield 4.1%
EPS growth (YoY) +245%
Net debt $79.5B FY2025

Figures from reported company fundamentals · as of Jul 25, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 40/100

Of which business quality 43 · Market factors (momentum, volatility) 67

Profitability 43
Margins and returns on capital today
Quality Growth 41
Are margins and returns improving?
Cashflow 56
Earnings quality: real cash, not paper profit
Fin. Strength 43
Balance sheet, leverage, solvency risk
Investment 70
Disciplined investing over empire-building
Low Volatility 98
Calm price path (market factor)
Momentum 44
Price trend over the last 3–12 months (market factor)
52W Momentum 71
Distance to the 52-week high (market factor)
Net Issuance 0
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

Japan Pulp and Paper Company Limited engages in the manufacture, import, export, distribution, wholesale, and sale of paper, paperboards, pulp, and paper-related products in Japan, Europe, Asia, Oceania, North America, and internationally.

Full company description

Japan Pulp and Paper Company Limited engages in the manufacture, import, export, distribution, wholesale, and sale of paper, paperboards, pulp, and paper-related products in Japan, Europe, Asia, Oceania, North America, and internationally. The company operates through Japan Wholesaling; Non-Japan Wholesaling; Paper Manufacturing and Processing; Raw Materials and Environment; and Real Estate Leasing. The company offers household paper products and goods, processed papers, container materials, recovered papers, industrial chemicals, building materials, capacitor papers, paper products, and stationery and goods. It is also involved in the information management; sale of computer systems; development of software; internet retailing operations; retail of paper products; wholesale and retail of bookbinding materials; warehousing and transportation; paper converting, shipping, pallet recovery, and recycling; real estate leasing; and cargo handling. In addition, the company engages in the sale of materials to the electronics industry; sign and display media hardware sales and technical services; supply of thermal transfer ribbons and MICR ribbons; business management; sale of digital printers, paper, films and other media, ink and other supplies, graphic paper, and non-woven fabric; and provision of shared services delivering IT and finance services. Further, it is involved in the manufacture and sale of corrugated board and packages, household paper products, and biomass power generation. Additionally, the company engages in the generation and sale of renewable energy. Japan Pulp and Paper Company Limited was founded in 1845 and is headquartered in Tokyo, Japan.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Japan Pulp and Paper Company reported revenue of $555B in FY2025 versus $463B in FY2021, a compound +4.6%/yr. Reported net income was $7.6B in FY2025, compounding +20.0%/yr from FY2021.

Growth Quality 70/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
$555B
Latest YoY
+3.8%
Avg. growth/yr (3Y)
+7.6%
Revenue +4.6%/yr
FY21 $463B
FY22 $445B
FY23 $545B
FY24 $534B
FY25 $555B
Net income +20.0%/yr
FY21 $3.6B
FY22 $11.5B
FY23 $25.4B
FY24 $10.4B
FY25 $7.6B

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Cite: Fair Value Calculator (2026). "Japan Pulp and Paper Company Fair Value". https://www.fairvalue-calculator.com/stock/JPPPF

Peer Group

Paper & Paper Products · 113 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 40 · Below median
Fair Value upside +54% · Top 25%
Return on equity (TTM) 4% · Above median
Return on assets 2% · Above median
Net margin (TTM) 1% · Below median
Operating margin (TTM) 2% · Below median
Revenue growth 10% · Top 25%
Dividend yield (TTM) 4.1% · Top 25%
Debt / equity 0.22× · Higher than median

Valuation Multiples vs Paper & Paper Products median · lower = cheaper

P/E (TTM) 11.0× · Cheaper than median
P/FCF 0.0× · Cheaper 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 20
FUTURE 50 · sector 7
PAST 17 · sector 12
HEALTH 89 · sector 91
DIVIDEND 81 · sector 41

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 Paper & Paper Products stocks, each showing price versus our Fair Value estimate (as of Jul 25, 2026).

Stock Price Fair Value vs Fair Value
Klabin S.A KLBN11 R$17.58 R$3.89 -78%
UPM-Kymmene Oyj UPM €23.45 €15.47 -34%
Suzano S.A SUZB3 R$41.70 R$138.01 +231%
Svenska Cellulosa Aktiebolaget SCA (publ) SCAB kr 103.00 kr 49.40 -52%
Shandong Sunpaper Co 002078 ¥14.13 ¥17.29 +22%
Holmen AB HOLMB kr 305.40 kr 217.72 -29%
Nine Dragons Paper (Holdings) Limited 2689 HK$7.55 HK$8.73 +16%
Empresas CMPC S.A CMPC 1,078 CLP 1,269 CLP +18%
Xianhe Co 603733 ¥22.05 ¥24.32 +10%
Billerud AB BILL kr 68.70 kr 48.60 -29%

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Frequently asked questions

Is Japan Pulp and Paper Company (JPPPF) overvalued or undervalued?
As of Jul 25, 2026, our model estimates a fair value of $7.42 versus a price of $4.64, about +60% (undervalued).
What is the fair value of JPPPF?
Our model-based fair value for Japan Pulp and Paper Company is $7.42 (as of Jul 25, 2026), built from audited fundamentals. The current price is $4.64.
What is the quality score of JPPPF?
Japan Pulp and Paper Company has a Quality Score of 40/100. 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 Japan Pulp and Paper Company (JPPPF)?
Japan Pulp and Paper Company reported trailing-twelve-month revenue of about $607B (latest available figure, as of Jul 25, 2026).
What is the net profit margin of JPPPF?
The net profit margin of Japan Pulp and Paper Company is about 0.8%, meaning it keeps roughly 0.8% of revenue as net income. Based on the latest reported figures.
Does Japan Pulp and Paper Company pay a dividend?
Japan Pulp and Paper Company currently shows a dividend yield of about 4.07% relative to its recent price (as of Jul 25, 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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