Mitsubishi Heavy Industries (TSE:7011) is back in focus after Mitsubishi Power Americas committed $490m to expand its Savannah Machinery Works facility in Georgia, targeting higher turbine output and more than 220 additional manufacturing jobs.
For context, Mitsubishi Heavy Industries shares closed at ¥3,527 on the most recent trading day, with the 30 day share price return down 9.5% and the year to date share price return down 15.3%. The 3 year total shareholder return is up more than 3x and the 5 year total shareholder return is up more than 12x, which points to long term momentum that contrasts with the weaker recent stretch as investors reassess shorter term risks and growth expectations around projects like the Savannah expansion.
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Mitsubishi Heavy Industries now shows a sharp pullback on the chart, but also a long runway of executed projects and new commitments like Savannah. Has the share price already banked that progress, or is the discount still meaningful?
Most Popular Narrative: 35% Undervalued
With Mitsubishi Heavy Industries last closing at ¥3,527 against a widely followed fair value estimate of ¥5,450.58, the current quote sits well below what that narrative suggests. This is why the disconnect between backlog visibility and share price is drawing attention.
Record order intake in Q1 FY 2026 of ¥2,022.4b and an order backlog above ¥14t indicate that Mitsubishi Heavy Industries still has several years of contracted work to execute. This can support future revenue and earnings as these projects convert from backlog to sales.
See why 15 investors see Mitsubishi Heavy Industries as 35% undervalued.
Result: Fair Value of ¥5,450.58 (UNDERVALUED)
Still, China’s export controls and the ¥30.0b goodwill impairment in Industrial Power Solutions could unsettle confidence if they point to deeper margin or execution issues.
Find out about the key risks to this Mitsubishi Heavy Industries narrative.
Another View: What Multiples Say About Mitsubishi Heavy Industries
There is a very different message in the market multiples. Mitsubishi Heavy Industries trades on a P/E of 29x, compared with 20.7x for peers and 12.5x for the wider JP Machinery group, while the fair ratio sits at 29x. That suggests far less margin of safety in the listed price than the narrative fair value implies. Which signal deserves more weight in your process?
See what the numbers say about this price in our valuation breakdown See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
All this mixed sentiment around Mitsubishi Heavy Industries only matters if you use it as a springboard to review the numbers yourself and move quickly. To see what optimism in the data actually looks like, have a look at the 3 key rewards
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