Square Enix Holdings Valuation

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

SQNN.Y ($18) is trading above our estimate of [[fair value]] ($12.24)

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

Valuation Score

0/6

Valuation Score 0/6

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

Below Fair Value: SQNN.Y ($18) is trading above our estimate of fair value ($12.24)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SQNN.Y?

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

The above table shows the Price to Earnings ratio for SQNN.Y. This is calculated by dividing SQNN.Y's market cap by their current earnings.
What is SQNN.Y's PE Ratio?
PE Ratio	72.5x
Earnings	JP¥10.04b
Market Cap	JP¥688.17b

SQNN.Y 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	1.4x
Enterprise Value/EBITDA	10.5x
PEG Ratio	3.5x

Price to Earnings Ratio vs Peers

How does SQNN.Y's PE Ratio compare to its peers?

The above table shows the PE ratio for SQNN.Y 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	13x
PLTK Playtika Holding	14.5x	9.9%	US$3.1b
SCPL SciPlay	20.9x	8.7%	US$2.9b
DDI DoubleDown Interactive	6.4x	0.3%	US$730.4m
GDEV GDEV	10.1x	-11.6%	US$485.4m
SQNN.Y Square Enix Holdings	72.5x	20.5%	US$688.2b

Price-To-Earnings vs Peers: SQNN.Y is expensive based on its Price-To-Earnings Ratio (72.5x) compared to the peer average (10.3x).

Price to Earnings Ratio vs Industry

How does SQNN.Y's PE Ratio compare vs other companies in the US Entertainment Industry?

6 Companies	Price / Earnings	Estimated Growth	Market Cap
IH iHuman	4.7x	n/a	US$85.73m
RDBX Redbox Entertainment	1.2x	-121.8%	US$76.65m
GMM Global Mofy AI	0.7x	n/a	US$11.91m
MSGM Motorsport Games	0.7x	n/a	US$3.47m

6 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: SQNN.Y is expensive based on its Price-To-Earnings Ratio (72.5x) compared to the US Entertainment industry average (21.6x).

Price to Earnings Ratio vs Fair Ratio

What is SQNN.Y'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.

SQNN.Y PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	72.5x
Fair PE Ratio	23.3x

Price-To-Earnings vs Fair Ratio: SQNN.Y is expensive based on its Price-To-Earnings Ratio (72.5x) compared to the estimated Fair Price-To-Earnings Ratio (23.3x).

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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