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Ajinomoto (TSE:2802) shares have drawn fresh attention as investors revisit the company’s performance this month. While there has not been any single headline event, several market watchers are observing how its ongoing growth trends might influence future returns.

See our latest analysis for Ajinomoto.

Ajinomoto’s share price momentum has stayed positive, climbing nearly 33% year-to-date and maintaining a robust uptrend. With a striking 1-year total shareholder return of 51% and five-year returns above 330%, long-term investors have been rewarded as optimism builds around the company’s growth strategy.

If Ajinomoto’s steady climb has you thinking bigger, now is the perfect moment to explore fast growing stocks with high insider ownership.

But with shares hovering near their price targets after years of strong gains, investors may wonder if Ajinomoto is still trading below its true value or if the market has already factored in all the expected growth ahead.

Ajinomoto’s last close at ¥4,231 sits just below the narrative fair value estimate of ¥4,377. This marginal gap amplifies the debate over whether recent innovations and partnerships could unlock further upside, or if current expectations already reflect the company’s full earnings potential.

“Ongoing investment in R&D and human capital, particularly in Functional Materials and Bio-Pharma Services, is expected to yield differentiated, higher-value products (e.g., specialty amino acids, AI/PC/server-related materials), strengthening competitive moat and gradually improving net margins over the long term.”

Read the complete narrative.

Want to know exactly which breakthrough bets and financial projections are shaping this valuation? The “secret sauce” is a bold mix of future margin expansion, ambitious growth forecasts, and the expectation of a premium price tag usually reserved for market innovators. Find out what underpins this bullish vision if you are ready for a deep dive.

Result: Fair Value of ¥4,377 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, persistent raw material cost inflation and weak demand in certain core markets could quickly derail Ajinomoto’s bullish recovery expectations.

Find out about the key risks to this Ajinomoto narrative.

While Ajinomoto looks slightly undervalued from a fair value perspective, its current price reflects a very high price-to-earnings ratio of 52.4 times. This is not just above the Japanese Food industry average of 16.4 times and its closest peers at 17.6 times, but also significantly exceeds the fair ratio of 33.8 times. This signals stretched expectations and higher valuation risk for investors. Is this optimism sustainable, or could it leave the stock vulnerable if growth falls short?

See what the numbers say about this price — find out in our valuation breakdown.

If you want to challenge the consensus or dig through the numbers yourself, you can build a personalized view in just a few minutes. Do it your way.

A great starting point for your Ajinomoto research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include 2802.T.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

• Schrödinger announced it will release its third quarter 2025 financial results on November 5, 2025, followed by a live webcast and conference call for investors.

• The company has attracted increasing industry attention as a pioneer in applying artificial intelligence to accelerate drug discovery and reshape biotechnology innovation.

• We’ll explore how recognition of Schrödinger’s AI leadership amid growing sector focus may influence its long-term investment outlook.

Find companies with promising cash flow potential yet trading below their fair value.

To be a shareholder of Schrödinger, you need to believe the company’s AI-driven software can become essential to drug discovery, leading to scalable, recurring revenues and clinical milestones. The upcoming third quarter 2025 results announcement and investor call, while relevant for short-term sentiment, does not materially change the main near-term catalyst, new clinical data for SGR-1505, nor does it resolve the biggest risk of sluggish new client acquisition amid biotech sector headwinds.

The most closely related recent announcement is Schrödinger’s update on initial clinical results for SGR-1505, a MALT1 inhibitor, which showed early efficacy and received FDA Fast Track designation this June. This progress in the clinic positions SGR-1505 as a primary driver for milestone payments and licensing, supporting management’s focus on revenue growth from drug discovery and anchoring the short-term investment outlook.

However, investors should also be mindful that, in contrast to the excitement around new clinical milestones, ongoing challenges in expanding the customer base persist and…

Read the full narrative on Schrödinger (it’s free!)

Schrödinger’s narrative projects $396.6 million revenue and $34.8 million earnings by 2028. This requires 18.6% yearly revenue growth and a $216.1 million increase in earnings from the current level of -$181.3 million.

Uncover how Schrödinger’s forecasts yield a $27.30 fair value, a 21% upside to its current price.

Six independent valuations from the Simply Wall St Community place fair value for Schrödinger between US$27.00 and US$43.20 per share. While some see upside, many remain focused on the risk that slow new client acquisition could constrain long-term revenue growth and influence market sentiment ahead of earnings; explore the range of outlooks shaping this debate.

Explore 6 other fair value estimates on Schrödinger – why the stock might be worth as much as 92% more than the current price!

Disagree with existing narratives? Create your own in under 3 minutes – extraordinary investment returns rarely come from following the herd.

Don’t miss your shot at the next 10-bagger. Our latest stock picks just dropped:

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include SDGR.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com