Net One Systems Co., Ltd.

TSE:7518 Stock Report

Market Cap: JP¥356.3b

Net One Systems Valuation

Is 7518 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 7518 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 7518 (¥4490) is trading above our estimate of fair value (¥2632.93)

Significantly Below Fair Value: 7518 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 7518?

Key metric: As 7518 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 7518. This is calculated by dividing 7518's market cap by their current earnings.
What is 7518's PE Ratio?
PE Ratio22.4x
EarningsJP¥15.91b
Market CapJP¥356.31b

Price to Earnings Ratio vs Peers

How does 7518's PE Ratio compare to its peers?

The above table shows the PE ratio for 7518 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.6x
4812 Dentsu Soken
25.2x14.1%JP¥350.1b
8056 BIPROGY
17.5x8.2%JP¥423.8b
1973 NEC Networks & System Integration
31.6x11.5%JP¥491.6b
9759 NSD
24.1x7.5%JP¥259.5b
7518 Net One Systems
22.4x6.8%JP¥356.3b

Price-To-Earnings vs Peers: 7518 is good value based on its Price-To-Earnings Ratio (22.4x) compared to the peer average (24.6x).

Price to Earnings Ratio vs Industry

How does 7518's PE Ratio compare vs other companies in the JP IT Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
7518 22.4xIndustry Avg. 17.7xNo. of Companies30PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 7518 is expensive based on its Price-To-Earnings Ratio (22.4x) compared to the JP IT industry average (17.7x).

Price to Earnings Ratio vs Fair Ratio

What is 7518'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.

7518 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.4x
Fair PE Ratio26.6x

Price-To-Earnings vs Fair Ratio: 7518 is good value based on its Price-To-Earnings Ratio (22.4x) compared to the estimated Fair Price-To-Earnings Ratio (26.6x).

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 7518 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥4,490.00
JP¥3,650.00
-18.7%
14.7%JP¥4,200.00JP¥2,900.00n/a5
Nov ’25JP¥3,647.00
JP¥3,603.75
-1.2%
16.3%JP¥4,230.00JP¥2,650.00n/a8
Oct ’25JP¥3,593.00
JP¥3,603.33
+0.3%
15.4%JP¥4,230.00JP¥2,650.00n/a9
Sep ’25JP¥3,406.00
JP¥3,458.89
+1.6%
16.4%JP¥4,230.00JP¥2,650.00n/a9
Aug ’25JP¥2,965.00
JP¥3,217.78
+8.5%
12.2%JP¥3,810.00JP¥2,650.00n/a9
Jul ’25JP¥3,007.00
JP¥3,217.78
+7.0%
12.2%JP¥3,810.00JP¥2,650.00n/a9
Jun ’25JP¥2,981.00
JP¥3,162.22
+6.1%
11.3%JP¥3,810.00JP¥2,650.00n/a9
May ’25JP¥2,588.50
JP¥2,978.89
+15.1%
16.1%JP¥3,710.00JP¥2,250.00n/a9
Apr ’25JP¥2,686.00
JP¥2,978.89
+10.9%
16.1%JP¥3,710.00JP¥2,250.00n/a9
Mar ’25JP¥2,658.00
JP¥2,778.89
+4.5%
15.2%JP¥3,710.00JP¥2,250.00n/a9
Feb ’25JP¥2,346.00
JP¥2,751.11
+17.3%
16.7%JP¥3,600.00JP¥2,250.00n/a9
Jan ’25JP¥2,403.50
JP¥2,822.86
+17.4%
17.7%JP¥3,600.00JP¥2,250.00n/a7
Dec ’24JP¥2,071.50
JP¥2,954.29
+42.6%
20.7%JP¥3,820.00JP¥2,250.00n/a7
Nov ’24JP¥2,341.50
JP¥3,577.50
+52.8%
17.2%JP¥4,600.00JP¥2,400.00JP¥3,647.008
Oct ’24JP¥2,838.00
JP¥3,652.50
+28.7%
13.4%JP¥4,600.00JP¥3,000.00JP¥3,593.008
Sep ’24JP¥2,857.50
JP¥3,702.22
+29.6%
13.1%JP¥4,600.00JP¥3,000.00JP¥3,406.009
Aug ’24JP¥3,162.00
JP¥4,230.00
+33.8%
14.1%JP¥5,700.00JP¥3,500.00JP¥2,965.0010
Jul ’24JP¥3,149.00
JP¥4,233.33
+34.4%
14.9%JP¥5,700.00JP¥3,500.00JP¥3,007.009
Jun ’24JP¥3,250.00
JP¥4,133.33
+27.2%
16.1%JP¥5,700.00JP¥3,300.00JP¥2,981.009
May ’24JP¥3,275.00
JP¥4,212.50
+28.6%
15.3%JP¥5,700.00JP¥3,400.00JP¥2,588.508
Apr ’24JP¥3,165.00
JP¥4,212.50
+33.1%
15.3%JP¥5,700.00JP¥3,400.00JP¥2,686.008
Mar ’24JP¥3,090.00
JP¥4,185.71
+35.5%
12.7%JP¥5,200.00JP¥3,400.00JP¥2,658.007
Feb ’24JP¥3,485.00
JP¥4,112.50
+18.0%
13.9%JP¥5,200.00JP¥3,300.00JP¥2,346.008
Jan ’24JP¥3,430.00
JP¥4,125.00
+20.3%
13.9%JP¥5,200.00JP¥3,300.00JP¥2,403.508
Dec ’23JP¥3,410.00
JP¥4,071.25
+19.4%
14.5%JP¥5,200.00JP¥3,300.00JP¥2,071.508
Nov ’23JP¥3,015.00
JP¥3,930.00
+30.3%
14.9%JP¥5,200.00JP¥3,300.00JP¥2,341.509

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

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