GMO Research & AI Valuation

Q: What is the Fair Price of 3695 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

3695 (¥2529) is trading below our estimate of [[fair value]] (¥5656.71)

Is 3695 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 3695 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3695 (¥2529) is trading below our estimate of fair value (¥5656.71)

Significantly Below Fair Value: 3695 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3695?

Key metric: As 3695 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 3695. This is calculated by dividing 3695's market cap by their current earnings.
What is 3695's PE Ratio?
PE Ratio	27.9x
Earnings	JP¥148.00m
Market Cap	JP¥4.13b

3695 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.6x
Enterprise Value/EBITDA	9.8x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 3695's PE Ratio compare to its peers?

The above table shows the PE ratio for 3695 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	26.4x
6038 IID	22x	n/a	JP¥3.6b
4171 Global Information	12.6x	n/a	JP¥4.2b
7671 AmidA HoldingsLtd	13.6x	n/a	JP¥4.0b
2411 Gendai Agency	57.3x	n/a	JP¥4.2b
3695 GMO Research & AI	27.9x	n/a	JP¥4.1b

Price-To-Earnings vs Peers: 3695 is good value based on its Price-To-Earnings Ratio (27.9x) compared to the peer average (30.7x).

Price to Earnings Ratio vs Industry

How does 3695's PE Ratio compare vs other companies in the JP Media Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap

No more companies available in this PE range

0 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 3695 is expensive based on its Price-To-Earnings Ratio (27.9x) compared to the JP Media industry average (15.7x).

Price to Earnings Ratio vs Fair Ratio

What is 3695's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

3695 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	27.9x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 3695's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

Discover undervalued companies

Material Group

JP¥5.8b

Provides marketing communication consulting services in PR and digital fields in Japan.

156A

JP¥589.00

-0.3%

n/a

Asahi Broadcasting Group Holdings

JP¥25.4b

Engages in television and radio broadcasting activities in Japan and internationally.

9405

JP¥609.00

-0.7%

-4.8%

Akatsuki

JP¥34.2b

Engages in the game, comic, and other businesses primarily in Japan.

3932

JP¥2,371.00

8.6%

7.2%