Soliton Systems K.K Valuation

Q: What is the Fair Price of 3040 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

3040 (¥1165) is trading above our estimate of [[fair value]] (¥1036.32)

Is 3040 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 3040 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3040 (¥1165) is trading above our estimate of fair value (¥1036.32)

Significantly Below Fair Value: 3040 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3040?

Key metric: As 3040 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 3040. This is calculated by dividing 3040's market cap by their current earnings.
What is 3040's PE Ratio?
PE Ratio	12.1x
Earnings	JP¥1.79b
Market Cap	JP¥21.95b

3040 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	0.4x
Enterprise Value/EBITDA	3.1x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 3040's PE Ratio compare to its peers?

The above table shows the PE ratio for 3040 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	29.1x
4493 Cyber Security Cloud	29.5x	26.9%	JP¥17.1b
3692 FFRI Security	32x	n/a	JP¥14.6b
4420 eSOLLtd	20.6x	n/a	JP¥13.0b
3694 OPTiM	34.4x	11.6%	JP¥38.4b
3040 Soliton Systems K.K	12.1x	n/a	JP¥21.6b

Price-To-Earnings vs Peers: 3040 is good value based on its Price-To-Earnings Ratio (12.1x) compared to the peer average (29.1x).

Price to Earnings Ratio vs Industry

How does 3040's PE Ratio compare vs other companies in the JP Software Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap

No more companies available in this PE range

0 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 3040 is good value based on its Price-To-Earnings Ratio (12.1x) compared to the JP Software industry average (22.4x).

Price to Earnings Ratio vs Fair Ratio

What is 3040'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.

3040 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12.1x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 3040'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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