Nintendo Valuation

Is 7974 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-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.

Discounted Cash Flow
Simply Wall St
JP¥8.02k
Fair Value
47.6% overvalued intrinsic discount
25
Number of Analysts

Below Fair Value: 7974 (¥11835) is trading above our estimate of fair value (¥8020.76)

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 Ratio49.4x
EarningsJP¥278.81b
Market CapJP¥14.08t

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 Average33.5x
9766 Konami Group
35.9x10.98%JP¥2.7t
3659 NEXON
16.5x-3.07%JP¥2.1t
9697 Capcom
37.1x10.54%JP¥1.8t
9684 Square Enix Holdings
44.3x11.65%JP¥1.1t
7974 Nintendo
49.4x18.31%JP¥14.1t

Price-To-Earnings vs Peers: 7974 is expensive based on its Price-To-Earnings Ratio (49.4x) compared to the peer average (33.5x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
7974 49.4xIndustry Avg. 21.5xNo. of Companies7PE01224364860+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 7974 is expensive based on its Price-To-Earnings Ratio (49.4x) compared to the JP Entertainment industry average (21.5x).


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 Ratio49.4x
Fair PE Ratio45.6x

Price-To-Earnings vs Fair Ratio: 7974 is expensive based on its Price-To-Earnings Ratio (49.4x) compared to the estimated Fair Price-To-Earnings Ratio (45.6x).


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¥11,835.00
JP¥12,695.80
+7.27%
17.89%JP¥16,100.00JP¥8,540.00n/a25
May ’26JP¥12,145.00
JP¥11,057.39
-8.96%
19.03%JP¥15,580.00JP¥6,100.00n/a23
Apr ’26JP¥10,205.00
JP¥11,053.04
+8.31%
20.13%JP¥15,440.00JP¥6,100.00n/a23
Mar ’26JP¥11,160.00
JP¥10,596.36
-5.05%
20.56%JP¥15,440.00JP¥6,100.00n/a22
Feb ’26JP¥10,230.00
JP¥9,454.09
-7.58%
16.02%JP¥11,600.00JP¥6,100.00n/a22
Jan ’26JP¥9,264.00
JP¥9,147.73
-1.26%
16.12%JP¥11,000.00JP¥5,800.00n/a22
Dec ’25JP¥8,810.00
JP¥9,013.18
+2.31%
16.07%JP¥10,700.00JP¥5,800.00n/a22
Nov ’25JP¥7,963.00
JP¥8,995.00
+12.96%
16.01%JP¥10,700.00JP¥6,000.00n/a22
Oct ’25JP¥7,696.00
JP¥8,923.33
+15.95%
15.91%JP¥10,700.00JP¥6,100.00n/a21
Sep ’25JP¥7,902.00
JP¥8,919.09
+12.87%
15.76%JP¥10,700.00JP¥6,100.00n/a22
Aug ’25JP¥8,105.00
JP¥8,879.24
+9.55%
15.55%JP¥10,700.00JP¥6,100.00n/a21
Jul ’25JP¥8,749.00
JP¥8,844.48
+1.09%
15.40%JP¥10,700.00JP¥6,100.00n/a21
Jun ’25JP¥8,555.00
JP¥8,635.45
+0.94%
16.84%JP¥10,700.00JP¥6,100.00JP¥11,835.0022
May ’25JP¥7,637.00
JP¥8,599.09
+12.60%
18.05%JP¥12,000.00JP¥6,100.00JP¥12,145.0022
Apr ’25JP¥8,210.00
JP¥8,483.33
+3.33%
19.85%JP¥12,000.00JP¥6,100.00JP¥10,205.0021
Mar ’25JP¥8,484.00
JP¥8,428.95
-0.65%
19.48%JP¥12,000.00JP¥6,100.00JP¥11,160.0019
Feb ’25JP¥8,310.00
JP¥7,616.05
-8.35%
14.74%JP¥9,400.00JP¥5,700.00JP¥10,230.0019
Jan ’25JP¥7,359.00
JP¥7,100.25
-3.52%
15.15%JP¥9,300.00JP¥5,100.00JP¥9,264.0020
Dec ’24JP¥6,909.00
JP¥6,945.00
+0.52%
16.67%JP¥9,300.00JP¥4,600.00JP¥8,810.0021
Nov ’24JP¥6,310.00
JP¥6,829.32
+8.23%
15.16%JP¥8,900.00JP¥4,600.00JP¥7,963.0022
Oct ’24JP¥6,230.00
JP¥6,740.24
+8.19%
14.45%JP¥8,100.00JP¥4,600.00JP¥7,696.0021
Sep ’24JP¥6,268.00
JP¥6,747.25
+7.65%
14.49%JP¥8,100.00JP¥4,600.00JP¥7,902.0020
Aug ’24JP¥6,459.00
JP¥6,618.75
+2.47%
16.99%JP¥8,100.00JP¥3,600.00JP¥8,105.0020
Jul ’24JP¥6,542.00
JP¥6,305.56
-3.61%
15.85%JP¥8,100.00JP¥3,600.00JP¥8,749.0018
Jun ’24JP¥5,954.00
JP¥6,088.89
+2.27%
18.31%JP¥8,100.00JP¥2,900.00JP¥8,555.0018
AnalystConsensusTarget
Consensus Narrative from 25 Analysts
JP¥12.70k
Fair Value
6.8% undervalued intrinsic discount
25
Number of Analysts

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 Analysis2025/06/05 08:02
End of Day Share Price 2025/06/05 00:00
Earnings2025/03/31
Annual Earnings2025/03/31

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.

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 Github.

Analyst Sources

Nintendo Co., Ltd. is covered by 52 analysts. 26 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Toshiro YoshinagaAizawa Securities Co. Ltd.
David MakArete Research Services LLP
Haruka MoriBarclays