Net One Systems Co., Ltd.

TSE:7518 Stock Report

Market Cap: JP¥266.0b

Net One Systems Valuation

Is 7518 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • 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 (¥3355) is trading below our estimate of fair value (¥3908.64)

Significantly Below Fair Value: 7518 is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

7518 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/Revenue1.3x
Enterprise Value/EBITDA10.3x
PEG Ratio4.4x

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 Average24.5x
9759 NSD
23.1x7.6%JP¥242.6b
1973 NEC Networks & System Integration
24.4x10.9%JP¥404.3b
4812 Dentsu Soken
27x15.1%JP¥385.9b
9682 DTS
23.6x12.1%JP¥174.0b
7518 Net One Systems
17.4x4.0%JP¥266.0b

Price-To-Earnings vs Peers: 7518 is good value based on its Price-To-Earnings Ratio (17.4x) compared to the peer average (24.5x).

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
Industry Avg.n/a9.3%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.3%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: 7518 is good value based on its Price-To-Earnings Ratio (17.4x) compared to the JP IT industry average (17.5x).

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 Ratio17.4x
Fair PE Ratio22.4x

Price-To-Earnings vs Fair Ratio: 7518 is good value based on its Price-To-Earnings Ratio (17.4x) compared to the estimated Fair Price-To-Earnings Ratio (22.4x).

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¥3,355.00
JP¥3,323.33
-0.9%
13.1%JP¥3,810.00JP¥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¥2,400.00n/a8
Oct ’24JP¥2,838.00
JP¥3,652.50
+28.7%
13.4%JP¥4,600.00JP¥3,000.00n/a8
Sep ’24JP¥2,857.50
JP¥3,702.22
+29.6%
13.1%JP¥4,600.00JP¥3,000.00n/a9
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
Oct ’23JP¥2,818.00
JP¥3,917.00
+39.0%
14.5%JP¥5,200.00JP¥3,200.00JP¥2,838.0010
Sep ’23JP¥2,998.00
JP¥3,903.00
+30.2%
14.6%JP¥5,200.00JP¥3,200.00JP¥2,857.5010
Aug ’23JP¥2,979.00
JP¥3,973.00
+33.4%
15.1%JP¥5,200.00JP¥3,200.00JP¥3,162.0010

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

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