freee K.K.

TSE:4478 Stock Report

Market Cap: JP¥228.6b

freee K.K Valuation

Is 4478 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 4478 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: 4478 (¥3850) is trading below our estimate of future cash flow value (¥7109.07)

Significantly Below Future Cash Flow Value: 4478 is trading below future cash flow value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 4478?

Key metric: As 4478 is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 4478. This is calculated by dividing 4478's market cap by their current revenue.
What is 4478's PS Ratio?
PS Ratio5.4x
SalesJP¥42.44b
Market CapJP¥228.62b

Price to Sales Ratio vs Peers

How does 4478's PS Ratio compare to its peers?

The above table shows the PS ratio for 4478 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.7x
4443 Sansan
4.6x13.90%JP¥245.8b
3994 Money Forward
5.9x16.09%JP¥329.5b
4180 Appier Group
3x19.37%JP¥145.0b
4686 JustSystems
5.3xn/aJP¥274.2b
4478 freee K.K
5.4x16.29%JP¥228.6b

Price-To-Sales vs Peers: 4478 is expensive based on its Price-To-Sales Ratio (5.4x) compared to the peer average (4.7x).

Historical Price to Sales Ratio

Historical Price to Sales Ratio compares a stock's price to its sales over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Sales Ratio vs Industry

How does 4478's PS Ratio compare vs other companies in the JP Software Industry?

3 CompaniesPrice / SalesEstimated GrowthMarket Cap
3744 SIOS
0.2xn/aUS$25.68m
503A BellchildLtd
0.3xn/aUS$8.05m
260A alt
0.03xn/aUS$1.19m
No more companies available in this PS range
4478 5.4xIndustry Avg. 1.7xNo. of Companies25PS01.22.43.64.86+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 4478 is expensive based on its Price-To-Sales Ratio (5.4x) compared to the JP Software industry average (1.7x).

Price to Sales Ratio vs Fair Ratio

What is 4478's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

4478 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio5.4x
Fair PS Ratio6.8x

Price-To-Sales vs Fair Ratio: 4478 is good value based on its Price-To-Sales Ratio (5.4x) compared to the estimated Fair Price-To-Sales Ratio (6.8x).

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 4478 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥3,850.00
JP¥3,800.00
-1.30%
27.21%JP¥5,400.00JP¥2,200.00n/a11
Sep ’27JP¥4,185.00
JP¥3,354.55
-19.84%
31.02%JP¥5,100.00JP¥2,000.00n/a11
Aug ’27JP¥2,599.00
JP¥2,960.00
+13.89%
26.00%JP¥4,400.00JP¥2,000.00n/a10
Jul ’27JP¥1,918.00
JP¥3,230.00
+68.40%
27.87%JP¥4,500.00JP¥2,000.00n/a10
Jun ’27JP¥2,223.00
JP¥3,420.91
+53.89%
27.33%JP¥4,900.00JP¥2,000.00n/a11
May ’27JP¥2,274.00
JP¥3,420.91
+50.44%
26.81%JP¥4,900.00JP¥2,000.00n/a11
Apr ’27JP¥2,085.00
JP¥3,420.91
+64.07%
26.81%JP¥4,900.00JP¥2,000.00n/a11
Mar ’27JP¥2,150.00
JP¥3,927.27
+82.66%
16.40%JP¥4,900.00JP¥2,900.00n/a11
Feb ’27JP¥2,711.00
JP¥4,009.09
+47.88%
16.93%JP¥4,900.00JP¥2,900.00n/a11
Jan ’27JP¥3,005.00
JP¥4,009.09
+33.41%
16.93%JP¥4,900.00JP¥2,900.00n/a11
Dec ’26JP¥3,025.00
JP¥4,009.09
+32.53%
16.93%JP¥4,900.00JP¥2,900.00n/a11
Nov ’26JP¥3,450.00
JP¥4,050.00
+17.39%
17.75%JP¥4,900.00JP¥2,900.00n/a10
Oct ’26JP¥3,365.00
JP¥3,890.00
+15.60%
20.06%JP¥4,900.00JP¥2,600.00n/a10
Sep ’26JP¥3,220.00
JP¥3,920.00
+21.74%
17.59%JP¥4,900.00JP¥2,600.00JP¥4,185.0010
Aug ’26JP¥4,195.00
JP¥4,000.00
-4.65%
19.81%JP¥5,100.00JP¥2,600.00JP¥2,599.0010
Jul ’26JP¥3,695.00
JP¥4,000.00
+8.25%
19.81%JP¥5,100.00JP¥2,600.00JP¥1,918.0010
Jun ’26JP¥3,635.00
JP¥3,877.78
+6.68%
19.14%JP¥5,000.00JP¥2,600.00JP¥2,223.009
May ’26JP¥4,010.00
JP¥3,818.89
-4.77%
20.68%JP¥5,000.00JP¥2,470.00JP¥2,274.009
Apr ’26JP¥3,435.00
JP¥3,552.22
+3.41%
25.64%JP¥5,000.00JP¥2,470.00JP¥2,085.009
Mar ’26JP¥3,900.00
JP¥3,418.89
-12.34%
27.46%JP¥5,000.00JP¥2,470.00JP¥2,150.009
Feb ’26JP¥3,285.00
JP¥2,957.78
-9.96%
19.23%JP¥3,700.00JP¥2,000.00JP¥2,711.009
Jan ’26JP¥3,035.00
JP¥2,880.00
-5.11%
17.59%JP¥3,600.00JP¥2,000.00JP¥3,005.009
Dec ’25JP¥2,948.00
JP¥2,880.00
-2.31%
17.59%JP¥3,600.00JP¥2,000.00JP¥3,025.009
Nov ’25JP¥2,785.00
JP¥2,856.67
+2.57%
17.80%JP¥3,500.00JP¥2,000.00JP¥3,450.009
Oct ’25JP¥2,456.00
JP¥2,791.00
+13.64%
18.67%JP¥3,500.00JP¥2,000.00JP¥3,365.0010
Sep ’25JP¥2,779.00
JP¥3,005.00
+8.13%
23.82%JP¥4,600.00JP¥2,000.00JP¥3,220.0010
JP¥3.8k
Fair Value
1.3% overvalued intrinsic discount
11
Number of Analysts

Analyst Forecast: Target price is lower than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/09/11 15:12
End of Day Share Price 2026/09/11 00:00
Earnings2026/06/30
Annual Earnings2026/06/30

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 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

freee K.K. is covered by 16 analysts. 11 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Yuki KanekoBofA Global Research
Keiichi YoneshimaCitigroup Inc
Hideo NodaCLSA