In Diamond's ranking of undervalued electrical and electronics stocks, which compares theoretical share prices independently estimated by the editorial department with actual share prices, Hosiden ranks 5th and Konica Minolta 3rd. The stock ranked 1st is introduced as one whose current share price has diverged to approximately half its theoretical share price.
This feature explains how and why an original ranking of undervalued stocks was created for 25 electrical and electronics companies, using the gap between theoretical and actual share prices. For its valuation, it adopts a corporate valuation model based on residual income, an indicator used in place of PER and PBR, and explains how enterprise value is estimated as the sum of opening net assets and the present value of future residual income. The theoretical share price is calculated from accounting figures, and the valuation is characterized as reflecting shareholders' expected returns. The feature also notes that the residual income model can be applied to the inheritance valuation of shares in unlisted companies.
The ranking of the 25 electrical and electronics stocks lists those judged to be significantly undervalued at present, explicitly stating that Hosiden ranks 5th and Konica Minolta 3rd. The article explains that the stocks were ranked based on the size of the gap between their theoretical and current share prices, although the specific figures and detailed comparisons for individual stocks appear to be provided on separate pages of the main feature.
The top-ranked stock is described as having a current share price that has diverged to approximately half its theoretical share price, and as being considered substantially undervalued. This suggests that the ranking may serve as one indicator for identifying undervalued stocks, although the article leaves full disclosure of the stock names to a separate page of the feature.