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Murata Manufacturing Co (MRAAY) Fair Value & Analysis

Technology · US · Market cap $135B

MM Murata Manufacturing Co logo Murata Manufacturing Co MRAAY · US
Price$23.34
Fair Value$8.45
Upside-63.8%
Quality70/100
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Healthy Growth
Solidly profitable · 12.8% net margin
Low debt · generates free cash flow
0.54% dividend yield
Ranks above peers (8/12)
Moderate moat 61/100
Evidence: High Range $5.76 – $10.56 Share as image

Fair value as of: Jul 17, 2026

From 24 valuation models · updated 24 days ago

Fair value updated Jul 17, 2026, revised from $8.61 to $8.45 (−1.9%) since Jun 24, 2026. Share price −17.1% over the past month.

A solid business, but screening 64% overvalued on our models.

What matters now

  • A high-quality business (quality 70/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The price sits above even our optimistic bull case ($10.56). The favourable scenario is already priced in.
  • A fairly wide model range ($5.76 to $10.56) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

$38.28 $6.19 Fair Value $8.45 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 17, 2026.

How to read this chart

60‑month range $6.19 – $38.28 · fair‑value band $5.76 – $10.56 · the $23.34 price screens above the $8.45 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 17, 2026.

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Analysis

Murata Manufacturing Co (MRAAY) currently trades at $23.34, while our model-based Fair Value estimate is $8.45, implying the stock looks roughly 63.8% overvalued today. The Quality Score stands at 70/100 (solid quality), in the Technology sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Murata Manufacturing Co generated revenue of $1.8T at a net margin of 12.8%. Revenue grew 11.8% year over year. It earns a return on equity of 8.8%. The balance sheet holds a net cash position of $601B. Fundamentals as of Jul 17, 2026

Our scenario range runs from $5.76 (bear case) to $10.56 (bull case); at $23.34, the current price sits above 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 40% below its 52-week high and 247% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at -73% fair-value upside, at -64%, MRAAY 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 $5.30 $7.88 $11.99 80
Rev-Margin DCF $5.87 $9.14 $13.05 74
ROIC Compounder $5.54 $6.91 $8.75 72
All 24 models by family
DCF Models
FCF DCF $5.26 $7.90 $12.11 38
Owner Earnings $4.70 $6.98 $10.63 31
5Y Revenue Exit $5.87 $9.19 $13.54 39
5Y EBITDA Exit $7.73 $12.80 $18.90 41
5Y P/E Exit $6.29 $10.01 $14.04 38
10Y Revenue Exit $5.45 $8.47 $12.75 36
10Y EBITDA Exit $6.82 $11.02 $16.97 37
10Y P/E Exit $5.89 $9.05 $13.14 35
Earnings-Based
Graham-Dodd $2.87 $10.40 $14.03 54
Lynch FV $2.47 $3.52 $4.58 50
PEG = 1.0 $2.47 $3.52 $4.58 46
EPV $5.32 $6.02 $6.63 59
Multiples
P/E Multiple $6.34 $8.45 $10.56 63
P/S Multiple $5.39 $7.18 $8.98 58
P/B Multiple $5.39 $7.18 $8.98 55
EV/EBIT $8.90 $11.50 $14.09 53
EV/EBITDA $9.88 $12.80 $15.72 54
EV/Revenue $6.36 $8.61 $10.86 43
Asset-Based
NCAV (Graham) $2.33 $3.12 $4.65 50
Growth DCF
Growth DCF $5.30 $7.88 $11.99 80
Rev-Margin DCF $5.87 $9.14 $13.05 74
Economic Profit
Residual Income $3.99 $4.37 $6.05 61
ROIC Compounder $5.54 $6.91 $8.75 72
Growth Earnings
Growth-Adj P/E $4.54 $6.48 $8.43 68

Widest divergence: DCF Models ($9.05) versus Asset-Based ($3.12). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $1.8T
Revenue growth (YoY) +11.8%
Net margin 12.8%
Return on equity 8.8%
Free cash flow $205B FY2026
P/E ratio 92.4
More key figures
Operating margin 28.1%
EPS (TTM) $0.4000
Dividend yield 0.5%
EPS growth (YoY) +141%
Net cash $601B FY2026

Figures from reported company fundamentals · as of Jul 17, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 70/100

Of which business quality 69 · Market factors (momentum, volatility) 70

Profitability 48
Margins and returns on capital today
Quality Growth 56
Are margins and returns improving?
Cashflow 60
Earnings quality: real cash, not paper profit
Fin. Strength 91
Balance sheet, leverage, solvency risk
Investment 64
Disciplined investing over empire-building
Low Volatility 21
Calm price path (market factor)
Momentum 100
Price trend over the last 3–12 months (market factor)
52W Momentum 76
Distance to the 52-week high (market factor)
Net Issuance 97
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

Murata Manufacturing Co., Ltd. develops, manufactures, and sells ceramic-based passive electronic components and solutions in Japan and internationally. It operates through three segments: Components, Devices & Modules, and Other.

Full company description

Murata Manufacturing Co., Ltd. develops, manufactures, and sells ceramic-based passive electronic components and solutions in Japan and internationally. It operates through three segments: Components, Devices & Modules, and Other. The company offers capacitors; inductors; high frequency device and communication modules, including surface acoustic wave filters, RF modules, multilayer resin substrates, and connectivity modules; lithium-ion secondary batteries; and sensors; antennas and related products; baluns; and batteries. It also offers Femtet, a CAE software; capacitors; cell fractionation filters; connectivity modules; connectors; couplers; digital panel meters; filters; front-end modules; inductors; ionizers; micro mechatronics; watch batteries; noise suppression products; and optical devices. In addition, the company provides phase shifters, power products, printed circuit products, resistors, RF switches, RFID products, sensors, sound components, thermistors, timing devices, and transformers. It offers its products for use in communications equipment, mobility, data center and enterprise computing, industrial, wellness, personal electronics, and environment/energy applications. The company was founded in 1944 and is headquartered in Nagaokakyo, Japan.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Murata Manufacturing Co reported revenue of $1.9T in FY2026 versus $1.8T in FY2022, a compound +1.7%/yr. Reported net income was $248B in FY2026, compounding −5.7%/yr from FY2022.

Growth Quality 70/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
$1.9T
Latest YoY
+11.4%
Avg. growth/yr (3Y)
+4.8%
Avg. growth/yr (5Y)
+3.6%
Avg. growth/yr (26Y)
+5.7%
Revenue +1.7%/yr
FY22 $1.8T
FY23 $1.7T
FY24 $1.6T
FY25 $1.7T
FY26 $1.9T
Net income −5.7%/yr
FY22 $314B
FY23 $244B
FY24 $181B
FY25 $234B
FY26 $248B

MRAAY screens 64% overvalued. Compare with Delta Electronics, Inc →

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Cite: Fair Value Calculator (2026). "Murata Manufacturing Co Fair Value". https://www.fairvalue-calculator.com/stock/MRAAY

Earlier news

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

Peer Group

Electronic Components · 626 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 70 · Top 25%
Fair Value upside −64% · Below median
Return on equity (TTM) 9% · Above median
Return on assets 7% · Top 25%
Net margin (TTM) 13% · Top 25%
Operating margin (TTM) 28% · Top 25%
Revenue growth 12% · Above median
Dividend yield (TTM) 0.5% · Below median
Debt / equity 0.00× · Lower than 75% of peers

Valuation Multiples vs Electronic Components median · lower = cheaper

P/E (TTM) 92.4× · Pricier than 75% of peers
P/FCF 0.7× · Cheaper than median
PEG 3.26× · 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 0 · sector 0
FUTURE 59 · sector 32
PAST 35 · sector 24
HEALTH 100 · sector 95
DIVIDEND 11 · sector 25

VALUE 0: the price sits above our fair-value range.

Insider activity: 40/100

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 Electronic Components stocks, each showing price versus our Fair Value estimate (as of Jul 17, 2026).

Stock Price Fair Value vs Fair Value
Delta Electronics, Inc 2308 1,880 TWD 515.23 TWD -73%
Hon Hai Precision Industry Co 2317 242.50 TWD 270.47 TWD +12%
Luxshare Precision Industry Co 002475 ¥62.14 ¥38.44 -38%
Samsung Electro-Mechanics Co 009150 1,260,000 KRW 166,421 KRW -87%
Elite Material Co 2383 4,990 TWD 714.36 TWD -86%
Yageo Corporation 2327 699.00 TWD 216.55 TWD -69%
Shengyi Technology Co 600183 ¥132.29 ¥27.45 -79%
Shennan Circuits Co 002916 ¥364.00 ¥93.50 -74%
Victory Giant Technology (HuiZhou) Co 2476 HK$297.00 HK$103.98 -65%
Wus Printed Circuit (Kunshan) Co 002463 ¥127.80 ¥31.95 -75%

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Frequently asked questions

Is Murata Manufacturing Co (MRAAY) overvalued or undervalued?
As of Jul 17, 2026, our model estimates a fair value of $8.45 versus a price of $23.34, about −64% (overvalued).
What is the fair value of MRAAY?
Our model-based fair value for Murata Manufacturing Co is $8.45 (as of Jul 17, 2026), built from audited fundamentals. The current price is $23.34.
What is the quality score of MRAAY?
Murata Manufacturing Co has a Quality Score of 70/100. 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 Murata Manufacturing Co (MRAAY)?
Murata Manufacturing Co reported trailing-twelve-month revenue of about $1.8T (latest available figure, as of Jul 17, 2026).
What is the net profit margin of MRAAY?
The net profit margin of Murata Manufacturing Co is about 12.8%, meaning it keeps roughly 12.8% of revenue as net income. Based on the latest reported figures.
Does Murata Manufacturing Co pay a dividend?
Murata Manufacturing Co currently shows a dividend yield of about 0.54% relative to its recent price (as of Jul 17, 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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