DrecomLtd Valuation

Q: What is the Fair Price of 3793 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

3793 (¥720) is trading above our estimate of [[fair value]] (¥76.99)

Is 3793 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

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

Share Price vs Fair Value

What is the Fair Price of 3793 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3793 (¥720) is trading above our estimate of fair value (¥76.99)

Significantly Below Fair Value: 3793 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3793?

Key metric: As 3793 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 3793. This is calculated by dividing 3793's market cap by their current revenue.
What is 3793's PS Ratio?
PS Ratio	2.4x
Sales	JP¥8.71b
Market Cap	JP¥20.67b

3793 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	2.5x
Enterprise Value/EBITDA	73.6x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 3793's PS Ratio compare to its peers?

The above table shows the PS ratio for 3793 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	1.8x
3932 Akatsuki	1.4x	11.0%	JP¥34.4b
4382 HEROZ	3x	13.1%	JP¥15.2b
3903 gumi	1.5x	n/a	JP¥17.9b
7844 Marvelous	1.2x	7.5%	JP¥35.3b
3793 DrecomLtd	2.4x	30.0%	JP¥20.7b

Price-To-Sales vs Peers: 3793 is expensive based on its Price-To-Sales Ratio (2.4x) compared to the peer average (1.8x).

Price to Sales Ratio vs Industry

How does 3793's PS Ratio compare vs other companies in the JP Entertainment Industry?

2 Companies	Price / Sales	Estimated Growth	Market Cap
7060 geechs	0.2x	3.9%	US$27.66m
2402 amana	0.1x	n/a	US$11.46m

No more companies available in this PS range

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 3793 is expensive based on its Price-To-Sales Ratio (2.4x) compared to the JP Entertainment industry average (1.3x).

Price to Sales Ratio vs Fair Ratio

What is 3793's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

3793 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	2.4x
Fair PS Ratio	1.7x

Price-To-Sales vs Fair Ratio: 3793 is expensive based on its Price-To-Sales Ratio (2.4x) compared to the estimated Fair Price-To-Sales Ratio (1.7x).

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.

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