Dentsu Group Inc.

TSE:4324 Stock Report

Market Cap: JP¥1.0t

Dentsu Group Valuation

Is 4324 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 4324 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 4324 (¥3943) is trading below our estimate of fair value (¥9768.47)

Significantly Below Fair Value: 4324 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 4324?

Key metric: As 4324 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 4324. This is calculated by dividing 4324's market cap by their current revenue.
What is 4324's PS Ratio?
PS Ratio0.7x
SalesJP¥1.40t
Market CapJP¥1.03t

Price to Sales Ratio vs Peers

How does 4324's PS Ratio compare to its peers?

The above table shows the PS ratio for 4324 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.6x
4751 CyberAgent
0.7x5.5%JP¥560.5b
2433 Hakuhodo DY Holdings
0.5x2.9%JP¥457.0b
4293 Septeni Holdings
4.3x10.9%JP¥92.3b
4326 INTAGE HOLDINGS
1x1.8%JP¥61.9b
4324 Dentsu Group
0.7x3.5%JP¥1.0t

Price-To-Sales vs Peers: 4324 is good value based on its Price-To-Sales Ratio (0.7x) compared to the peer average (1.6x).

Price to Sales Ratio vs Industry

How does 4324's PS Ratio compare vs other companies in the JP Media Industry?

1 CompanyPrice / SalesEstimated GrowthMarket Cap
7044 Piala
0.1xn/aUS$9.88m
No more companies available in this PS range
4324 0.7xIndustry Avg. 0.7xNo. of Companies18PS00.61.21.82.43+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 4324 is good value based on its Price-To-Sales Ratio (0.7x) compared to the JP Media industry average (0.7x).

Price to Sales Ratio vs Fair Ratio

What is 4324'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.

4324 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.7x
Fair PS Ratio4.7x

Price-To-Sales vs Fair Ratio: 4324 is good value based on its Price-To-Sales Ratio (0.7x) compared to the estimated Fair Price-To-Sales Ratio (4.7x).

Analyst Price Targets

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

The above table shows the analyst 4324 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥3,943.00
JP¥4,240.00
+7.5%
17.7%JP¥5,300.00JP¥3,100.00n/a7
Dec ’25JP¥3,824.00
JP¥4,232.86
+10.7%
17.8%JP¥5,300.00JP¥3,100.00n/a7
Nov ’25JP¥4,660.00
JP¥4,418.57
-5.2%
12.3%JP¥5,200.00JP¥3,500.00n/a7
Oct ’25JP¥4,382.00
JP¥4,418.57
+0.8%
12.3%JP¥5,200.00JP¥3,500.00n/a7
Sep ’25JP¥4,477.00
JP¥4,416.25
-1.4%
11.5%JP¥5,200.00JP¥3,500.00n/a8
Aug ’25JP¥3,944.00
JP¥4,361.25
+10.6%
11.2%JP¥5,200.00JP¥3,500.00n/a8
Jul ’25JP¥4,029.00
JP¥4,361.25
+8.2%
11.2%JP¥5,200.00JP¥3,500.00n/a8
Jun ’25JP¥4,158.00
JP¥4,423.75
+6.4%
9.0%JP¥5,200.00JP¥4,000.00n/a8
May ’25JP¥4,177.00
JP¥4,404.29
+5.4%
9.6%JP¥5,200.00JP¥4,000.00n/a7
Apr ’25JP¥4,254.00
JP¥4,404.29
+3.5%
9.6%JP¥5,200.00JP¥4,000.00n/a7
Mar ’25JP¥4,151.00
JP¥4,375.71
+5.4%
10.4%JP¥5,200.00JP¥3,800.00n/a7
Feb ’25JP¥3,890.00
JP¥4,332.86
+11.4%
11.5%JP¥5,200.00JP¥3,700.00n/a7
Jan ’25JP¥3,618.00
JP¥4,418.33
+22.1%
15.1%JP¥5,410.00JP¥3,700.00n/a6
Dec ’24JP¥3,941.00
JP¥4,418.33
+12.1%
15.1%JP¥5,410.00JP¥3,700.00JP¥3,824.006
Nov ’24JP¥4,389.00
JP¥4,685.00
+6.7%
16.4%JP¥6,000.00JP¥3,900.00JP¥4,660.006
Oct ’24JP¥4,400.00
JP¥4,701.43
+6.9%
15.1%JP¥6,000.00JP¥3,900.00JP¥4,382.007
Sep ’24JP¥4,401.00
JP¥4,772.86
+8.4%
17.8%JP¥6,500.00JP¥3,900.00JP¥4,477.007
Aug ’24JP¥4,771.00
JP¥4,883.33
+2.4%
15.8%JP¥6,500.00JP¥4,200.00JP¥3,944.006
Jul ’24JP¥4,713.00
JP¥4,883.33
+3.6%
15.8%JP¥6,500.00JP¥4,200.00JP¥4,029.006
Jun ’24JP¥4,480.00
JP¥5,128.57
+14.5%
16.2%JP¥6,500.00JP¥4,300.00JP¥4,158.007
May ’24JP¥4,895.00
JP¥5,071.43
+3.6%
16.8%JP¥6,500.00JP¥4,300.00JP¥4,177.007
Apr ’24JP¥4,650.00
JP¥5,071.43
+9.1%
16.8%JP¥6,500.00JP¥4,300.00JP¥4,254.007
Mar ’24JP¥4,390.00
JP¥4,968.75
+13.2%
17.7%JP¥6,500.00JP¥3,950.00JP¥4,151.008
Feb ’24JP¥4,130.00
JP¥4,981.25
+20.6%
17.5%JP¥6,500.00JP¥3,950.00JP¥3,890.008
Jan ’24JP¥4,145.00
JP¥4,981.25
+20.2%
17.5%JP¥6,500.00JP¥3,950.00JP¥3,618.008
Dec ’23JP¥4,315.00
JP¥5,006.25
+16.0%
17.1%JP¥6,500.00JP¥3,950.00JP¥3,941.008

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/21 14:03
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Dentsu Group Inc. is covered by 27 analysts. 8 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Yoshitaka NagaoBofA Global Research
Soichiro FukudaCitigroup Global Markets Japan Inc.
Mitsunobu TsuruoCitigroup Inc