and factoryinc Valuation

Is 7035 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

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 7035 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 7035 (¥230) is trading below our estimate of fair value (¥26850.45)

Significantly Below Fair Value: 7035 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 7035?

Key metric: As 7035 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 7035. This is calculated by dividing 7035's market cap by their current earnings.
What is 7035's PE Ratio?
PE Ratio	29.1x
Earnings	JP¥88.94m
Market Cap	JP¥2.59b

7035 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	0.3x
Enterprise Value/EBITDA	-6.1x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 7035's PE Ratio compare to its peers?

The above table shows the PE ratio for 7035 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	17.9x
9421 NJ Holdings	21.2x	n/a	JP¥2.5b
3928 Mynet	8.5x	n/a	JP¥2.9b
6033 ExtremeLtd	7.8x	n/a	JP¥7.5b
3851 Nippon Ichi Software	34.1x	n/a	JP¥4.5b
7035 and factoryinc	29.1x	n/a	JP¥2.6b

Price-To-Earnings vs Peers: 7035 is expensive based on its Price-To-Earnings Ratio (29.1x) compared to the peer average (17.9x).

Price to Earnings Ratio vs Industry

How does 7035's PE Ratio compare vs other companies in the JP Entertainment Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap
3760 CAVE InteractiveLTD	3.8x	n/a	US$42.33m

No more companies available in this PE range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 7035 is expensive based on its Price-To-Earnings Ratio (29.1x) compared to the JP Entertainment industry average (28.3x).

Price to Earnings Ratio vs Fair Ratio

What is 7035'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.

7035 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	29.1x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 7035'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.

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