Nintendo Co., Ltd.

TSE:7974 Stock Report

Market Cap: JP¥9.6t

Nintendo Valuation

Is 7974 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 7974 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 7974 (¥8183) is trading above our estimate of fair value (¥6477.57)

Significantly Below Fair Value: 7974 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 7974?

Key metric: As 7974 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 7974. This is calculated by dividing 7974's market cap by their current earnings.
What is 7974's PE Ratio?
PE Ratio29x
EarningsJP¥327.96b
Market CapJP¥9.58t

Price to Earnings Ratio vs Peers

How does 7974's PE Ratio compare to its peers?

The above table shows the PE ratio for 7974 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average43.1x
9766 Konami Group
28.3x6.7%JP¥2.0t
9697 Capcom
42.6x16.3%JP¥1.4t
3659 NEXON
29.3x15.4%JP¥1.8t
9684 Square Enix Holdings
72.2x20.5%JP¥725.4b
7974 Nintendo
29x12.0%JP¥9.6t

Price-To-Earnings vs Peers: 7974 is good value based on its Price-To-Earnings Ratio (29x) compared to the peer average (43.1x).

Price to Earnings Ratio vs Industry

How does 7974's PE Ratio compare vs other companies in the JP Entertainment Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
3760 CAVE InteractiveLTD
3.7xn/aUS$41.69m
No more companies available in this PE range
7974 29.0xIndustry Avg. 27.4xNo. of Companies6PE01632486480+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 7974 is expensive based on its Price-To-Earnings Ratio (29x) compared to the JP Entertainment industry average (27.4x).

Price to Earnings Ratio vs Fair Ratio

What is 7974'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.

7974 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio29x
Fair PE Ratio32.3x

Price-To-Earnings vs Fair Ratio: 7974 is good value based on its Price-To-Earnings Ratio (29x) compared to the estimated Fair Price-To-Earnings Ratio (32.3x).

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 7974 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥8,183.00
JP¥9,013.18
+10.1%
16.1%JP¥10,700.00JP¥5,800.00n/a22
Nov ’25JP¥7,963.00
JP¥8,995.00
+13.0%
16.0%JP¥10,700.00JP¥6,000.00n/a22
Oct ’25JP¥7,696.00
JP¥8,923.33
+15.9%
15.9%JP¥10,700.00JP¥6,100.00n/a21
Sep ’25JP¥7,902.00
JP¥8,919.09
+12.9%
15.8%JP¥10,700.00JP¥6,100.00n/a22
Aug ’25JP¥8,105.00
JP¥8,879.24
+9.6%
15.5%JP¥10,700.00JP¥6,100.00n/a21
Jul ’25JP¥8,749.00
JP¥8,844.48
+1.1%
15.4%JP¥10,700.00JP¥6,100.00n/a21
Jun ’25JP¥8,555.00
JP¥8,635.45
+0.9%
16.8%JP¥10,700.00JP¥6,100.00n/a22
May ’25JP¥7,637.00
JP¥8,599.09
+12.6%
18.0%JP¥12,000.00JP¥6,100.00n/a22
Apr ’25JP¥8,210.00
JP¥8,483.33
+3.3%
19.9%JP¥12,000.00JP¥6,100.00n/a21
Mar ’25JP¥8,484.00
JP¥8,428.95
-0.6%
19.5%JP¥12,000.00JP¥6,100.00n/a19
Feb ’25JP¥8,310.00
JP¥7,616.05
-8.4%
14.7%JP¥9,400.00JP¥5,700.00n/a19
Jan ’25JP¥7,359.00
JP¥7,100.25
-3.5%
15.1%JP¥9,300.00JP¥5,100.00n/a20
Dec ’24JP¥6,909.00
JP¥6,945.00
+0.5%
16.7%JP¥9,300.00JP¥4,600.00n/a21
Nov ’24JP¥6,310.00
JP¥6,829.32
+8.2%
15.2%JP¥8,900.00JP¥4,600.00JP¥7,963.0022
Oct ’24JP¥6,230.00
JP¥6,740.24
+8.2%
14.5%JP¥8,100.00JP¥4,600.00JP¥7,696.0021
Sep ’24JP¥6,268.00
JP¥6,747.25
+7.6%
14.5%JP¥8,100.00JP¥4,600.00JP¥7,902.0020
Aug ’24JP¥6,459.00
JP¥6,618.75
+2.5%
17.0%JP¥8,100.00JP¥3,600.00JP¥8,105.0020
Jul ’24JP¥6,542.00
JP¥6,305.56
-3.6%
15.9%JP¥8,100.00JP¥3,600.00JP¥8,749.0018
Jun ’24JP¥5,954.00
JP¥6,088.89
+2.3%
18.3%JP¥8,100.00JP¥2,900.00JP¥8,555.0018
May ’24JP¥5,691.00
JP¥5,950.00
+4.6%
19.1%JP¥8,100.00JP¥2,900.00JP¥7,637.0018
Apr ’24JP¥5,131.00
JP¥5,977.78
+16.5%
19.4%JP¥8,100.00JP¥2,900.00JP¥8,210.0018
Mar ’24JP¥5,122.00
JP¥6,233.33
+21.7%
21.2%JP¥8,200.00JP¥2,900.00JP¥8,484.0018
Feb ’24JP¥5,580.00
JP¥6,802.22
+21.9%
20.2%JP¥9,100.00JP¥2,540.00JP¥8,310.0018
Jan ’24JP¥5,532.00
JP¥6,887.78
+24.5%
19.9%JP¥9,100.00JP¥2,480.00JP¥7,359.0018
Dec ’23JP¥5,808.00
JP¥6,940.00
+19.5%
20.0%JP¥9,100.00JP¥2,480.00JP¥6,909.0017
Nov ’23JP¥6,075.00
JP¥6,940.00
+14.2%
19.7%JP¥8,700.00JP¥2,480.00JP¥6,310.0017

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

Discover undervalued companies

Trenders

JP¥7.7b

Engages in the marketing and investment business in Japan.

6069

JP¥953.00

7D

13.7%

1Y

-23.3%

Vector

JP¥44.1b

Engages in the public relations (PR) and advertising, press release distribution, video release distribution, direct marketing, media, investment, and human resources businesses in Japan, China, and internationally.

6058

JP¥941.00

7D

1.4%

1Y

-15.2%

Zenrin

JP¥43.5b

Engages in the collection and management of a range of geospatial information worldwide.

9474

JP¥813.00

7D

-1.0%

1Y

-7.5%