Dentsu Group Inc.

TSE:4324 Stock Report

Market Cap: JP¥961.1b

Dentsu Group Valuation

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

Valuation Score

6/6

Valuation Score 6/6

  • 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 (¥3687) is trading below our estimate of fair value (¥8100.01)

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¥1.38t
Market CapJP¥961.14b

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 Average1.5x
4751 CyberAgent
0.6x5.7%JP¥498.1b
2433 Hakuhodo DY Holdings
0.4x3.1%JP¥415.7b
4293 Septeni Holdings
4.1x11.3%JP¥88.8b
4326 INTAGE HOLDINGS
0.9x1.8%JP¥59.4b
4324 Dentsu Group
0.7x3.8%JP¥961.1b

Price-To-Sales vs Peers: 4324 is good value based on its Price-To-Sales Ratio (0.7x) compared to the peer average (1.5x).

Price to Sales Ratio vs Industry

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

0 CompaniesPrice / SalesEstimated GrowthMarket Cap
No more companies available in this PS range
4324 0.7xIndustry Avg. 0.7xNo. of Companies18PS00.61.21.82.43+
0 CompaniesEstimated 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¥3,687.00
JP¥4,447.14
+20.6%
14.5%JP¥5,300.00JP¥3,500.00n/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¥3,700.00n/a6
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
Nov ’23JP¥4,655.00
JP¥4,965.00
+6.7%
16.8%JP¥6,500.00JP¥3,720.00JP¥4,389.008

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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