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4751: Future Earnings Multiple Expansion Will Drive Stronger Share Price Potential

Japan Privacy Laws And Global Tech Giants Will Limit Outcomes

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4751
AnalystLowTarget
Not Invested
Published 07 Jul 2025

Update shared on 12 Dec 2025

Fair value Increased 16%
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AnalystLowTarget's Fair Value
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1Y
22.7%
7D
1.7%

Analysts have raised their price target on CyberAgent from ¥1,244.74 to ¥1,450.00, citing expectations for stronger revenue growth potential, a slightly lower discount rate, and a higher future price-to-earnings multiple, despite some compression in projected profit margins.

What's in the News

  • The Board of Directors scheduled a November 14, 2025 meeting to review a new restricted stock remuneration system, proposed amendments to the Articles of Incorporation, and planned changes in representative directors (company announcement).
  • The company issued consolidated earnings guidance for the fiscal year ending September 30, 2026, forecasting net sales of JPY 880 billion and operating income of JPY 50 billion to JPY 60 billion, with basic EPS expected between JPY 49.33 and JPY 59.19 (company guidance).
  • The Board approved submission of amendments to the Articles of Incorporation to the 28th Ordinary General Meeting on December 12, 2025, expanding the business scope for future diversification and formally creating a Chairman position (board resolution).
  • The company announced a dividend increase to JPY 17.00 per share for the fiscal year ending September 30, 2025, up from JPY 16.00, and guided to a further rise to JPY 19.00 per share for fiscal 2026 (dividend guidance).

Valuation Changes

  • Consensus analyst price target: fair value estimate increased from ¥1,244.74 to ¥1,450.00, representing a moderate upward revision to the target price.
  • Discount rate: edged down slightly from 4.83 percent to 4.80 percent, reflecting a marginally lower perceived risk profile.
  • Revenue growth: projected annual growth rate was raised significantly from about 1.76 percent to about 3.29 percent, indicating stronger topline expectations.
  • Net profit margin: forecast margin declined from about 4.08 percent to about 3.39 percent, pointing to some expected compression in profitability.
  • Future P/E: target valuation multiple increased meaningfully from about 20.15x to about 25.88x, indicating a higher expected earnings multiple for the stock.

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Disclaimer

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