Capcom (TSE:9697) Valuation in Focus Following Monster Hunter Wilds x Beard Papa’s Collaboration Announcement

Capcom (TSE:9697) is teaming up with Beard Papa's on a Monster Hunter Wilds promotion this October. The collaboration will feature exclusive menu items, in-game rewards, and pop-up events at select US stores. This move is turning heads among both fans and investors.

See our latest analysis for Capcom.

Capcom's latest partnership is just one of several moves keeping the company in the spotlight, though the share price has been mostly steady rather than surging. Over the past year, total shareholder return sits at a modest 0.31%, with long-term holders seeing considerably stronger gains. This is a sign that momentum has slowed following years of impressive compounding. Investors are clearly watching for signals of renewed growth or fresh risks in the wake of these marketing pushes.

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With shares mostly treading water and a modest discount to analyst targets, investors now face a familiar question: is Capcom undervalued after this lull, or has the market already accounted for its upcoming growth story?

Most Popular Narrative: 6.7% Undervalued

With Capcom’s consensus narrative fair value at ¥4,573 and the last close at ¥4,266, investors see a small but meaningful upside. Here is a crucial perspective driving this view.

Capcom's strategy to accelerate global expansion, particularly in emerging markets and through increased support for PC platforms, directly positions the company to capitalize on the ongoing growth in the worldwide gaming population, driving long-term revenue and potential international earnings growth.

Read the complete narrative.

Want to peek under the hood of Capcom’s future? This narrative is powered by bold assumptions about growth, margins, and a premium profit multiple. Curious which business bets have analysts expecting a steeper climb for the share price? Discover the surprising financial targets fueling this valuation.

Result: Fair Value of ¥4,573 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, future growth could be derailed if Capcom becomes too reliant on its core franchises or if it faces rising development and talent costs.

Find out about the key risks to this Capcom narrative.

Another View: What Does Our DCF Model Suggest?

While the consensus price target hints at moderate upside, our SWS DCF model offers a much more cautious outlook. It currently suggests Capcom is trading well above its estimated fair value, which points to potential overvaluation. Could the market be pricing in too much optimism, or does this signal a deeper opportunity for debate?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Capcom for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Capcom Narrative

If you see Capcom's story unfolding differently or want to run your own numbers, it's easy to build a custom view of the fair value in just a few minutes. Do it your way

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Capcom.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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