Business Brain Showa-Ota Valuation

Q: What is the Fair Price of 9658 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

9658 (¥2099) is trading below our estimate of [[fair value]] (¥4392.35)

Is 9658 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 9658 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 9658 (¥2099) is trading below our estimate of fair value (¥4392.35)

Significantly Below Fair Value: 9658 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 9658?

Key metric: As 9658 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 9658. This is calculated by dividing 9658's market cap by their current earnings.
What is 9658's PE Ratio?
PE Ratio	12.2x
Earnings	JP¥2.00b
Market Cap	JP¥24.34b

9658 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	0.5x
Enterprise Value/EBITDA	4.8x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 9658's PE Ratio compare to its peers?

The above table shows the PE ratio for 9658 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	24x
3925 Double Standard	12.9x	n/a	JP¥21.5b
3825 Remixpoint	59.6x	n/a	JP¥50.0b
2359 Core	11.4x	n/a	JP¥26.2b
9600 I-Net	11.8x	n/a	JP¥25.6b
9658 Business Brain Showa-Ota	12.2x	n/a	JP¥24.3b

Price-To-Earnings vs Peers: 9658 is good value based on its Price-To-Earnings Ratio (12.2x) compared to the peer average (24x).

Price to Earnings Ratio vs Industry

How does 9658's PE Ratio compare vs other companies in the JP IT 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: 9658 is good value based on its Price-To-Earnings Ratio (12.2x) compared to the JP IT industry average (17.5x).

Price to Earnings Ratio vs Fair Ratio

What is 9658'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.

9658 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12.2x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 9658'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.

Discover undervalued companies

jig.jp

JP¥11.5b

Engages in the planning, development, and provision of mobile software in Japan.

5244

JP¥272.00

-1.8%

-18.3%

ID Holdings

JP¥27.0b

Provides information technology (IT) services in Japan.

4709

JP¥1,610.00

2.5%

6.3%

GRCS

JP¥1.9b

Engages in the provision of Governance, Risk, and Compliance (GRC) software, as well as security products in Japan and internationally.

9250

JP¥1,411.00

-2.4%

-18.8%