GMO internet group Valuation

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

GMYO.Y ($31.48) is trading below our estimate of [[fair value]] ($75.06)

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

Below Fair Value: GMYO.Y ($31.48) is trading below our estimate of fair value ($75.06)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for GMYO.Y. This is calculated by dividing GMYO.Y's market cap by their current earnings.
What is GMYO.Y's PE Ratio?
PE Ratio	17x
Earnings	JP¥15.57b
Market Cap	JP¥264.73b

GMYO.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	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	1.1x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for GMYO.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	57.6x
DOCN DigitalOcean Holdings	43.5x	18.2%	US$3.6b
CD Chindata Group Holdings	26.6x	25.6%	US$3.1b
AKAM Akamai Technologies	26.8x	16.5%	US$14.0b
WIX Wix.com	133.5x	36.4%	US$12.5b
GMYO.Y GMO internet group	17x	15.0%	US$264.7b

Price-To-Earnings vs Peers: GMYO.Y is good value based on its Price-To-Earnings Ratio (17x) compared to the peer average (58.6x).

Price to Earnings Ratio vs Industry

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

5 Companies	Price / Earnings	Estimated Growth	Market Cap
TAOP Taoping	1x	n/a	US$2.19m
GTCH GBT Technologies	0.001x	n/a	US$1.68m
DLTI DLT Resolution	0.3x	n/a	US$228.03k
TMNA Agri-Fintech Holdings	0.0004x	n/a	US$129.25k

5 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: GMYO.Y is good value based on its Price-To-Earnings Ratio (17x) compared to the US IT industry average (40.3x).

Price to Earnings Ratio vs Fair Ratio

What is GMYO.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.

GMYO.Y PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	17x
Fair PE Ratio	n/a

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

Bitdeer Technologies Group

US$1.8b

Operates as a technology company for blockchain and computing.

BTDR

US$11.16

-3.3%

145.3%

Pagaya Technologies

US$773.4m

A product-focused technology company, deploys data science and proprietary artificial intelligence-powered technology for financial institutions and investors in the United States, Israel, the Cayman Islands, and internationally.

PGY

US$10.36

20.2%

-33.1%

Hackett Group

US$860.9m

Operates as an intellectual property-based executive advisory, strategic consulting, and digital transformation company in the United States, Europe, and internationally.

HCKT

US$31.51

3.7%

39.8%