Subaru is Cheap!

FUJHY is cheap by several metrics and warrants a multiple expansion!

- TTM GAAP PE is 71% below sector median
- FWD GAAP PE is 70% below sector median and 53% below its 5 year average.
-EV/EBITDA TTM and FWD are 92 and 94% below sector media; both are about 72% its 5 year avg
-P/S, P/FCF, P/B all are substantially below sector median and its 5 year avg
-DCF based on FCF and 7% discount rate implies a margin of safety at 89.1%
-Shiller PE is 8.34, during the past 10 years, Subaru's highest Shiller PE Ratio was 31.54. The lowest was 6.70. And the median was 10.74. Subaru's shiller PE is ranked better than 84% of 739 companies in the vehicle and parts industry.

-Technically, FUJHY is sitting near the bottom of a long term uptrend and appears to be finding a bottom within a flat channel and starting to trend up.

Subaru has been able to recover to its 2017-2018 profitability and net income range while projecting FWD growth. Given these considerations Subaru appears to be very cheap on several time frames and metrics.



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