A Look at Bandai Namco (TSE:7832) Valuation Following Upgraded FY2026 Guidance and Dividend Increase

BANDAI NAMCO Holdings (TSE:7832) revised its fiscal 2026 guidance upward, projecting higher net sales, operating profit, and profit attributable to owners of parent. The company also raised its interim dividend, reflecting a positive financial outlook.

See our latest analysis for BANDAI NAMCO Holdings.

Shares have pulled back in recent weeks despite upbeat guidance and a sharply higher interim dividend, with a 30-day share price return of -7.3% and a -17.8% move over the last quarter. However, momentum over the past year remains impressive, and long-term total shareholder return stands at 43.8% for one year and nearly 59% over three years, suggesting that investors are still positioning for further growth.

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With strong guidance, rising dividends, and a share price trading at a notable discount to analyst targets, investors now face a key question: Is BANDAI NAMCO Holdings undervalued, or is the market already factoring in its future growth?

Most Popular Narrative: 58.4% Overvalued

The narrative by Broke_Joe sets Bandai Namco's fair value well below the current share price, implying the stock looks expensive relative to its future potential. This framing leans on expectations for moderate but consistent growth across the company's diverse business lines.

Bandai Namco is well-positioned to deliver 6 to 8% compound annual revenue growth over the next five years, supported by its diversified entertainment portfolio and strategic focus on intellectual property (IP) monetization. The company’s growth engine is fueled primarily by its Games segment, which benefits from a robust pipeline of AAA titles and digital distribution channels.

Read the complete narrative.

Want to see what’s driving that deep fair value discount? This narrative hinges on bold assumptions about how new game franchises, global expansion, and IP monetization could fuel substantial revenue gains, and the confidence to back up those forecasts. Click to discover the critical projections that shape this eye-catching valuation.

Result: Fair Value of ¥2,797.59 (OVERVALUED)

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

However, unexpected blockbuster titles or stronger international sales growth could undermine overvaluation concerns and quickly narrow the perceived discount in Bandai Namco’s market price.

Find out about the key risks to this BANDAI NAMCO Holdings narrative.

Another View: Discounted Cash Flow Suggests Undervaluation

While the most popular narrative argues that Bandai Namco is overvalued, our DCF model actually paints a different picture. With shares trading nearly 23.4% below our estimate of fair value, the SWS DCF model suggests investors might be overlooking upside. Could this gap be the real opportunity?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out BANDAI NAMCO Holdings for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 898 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own BANDAI NAMCO Holdings Narrative

Don’t see things the same way, or think you’ve spotted something in the numbers? You’re invited to form your own view. Get started in just a few minutes with Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding BANDAI NAMCO Holdings.

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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.

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