Encourage Technologies Co Ltd
TSE:3682

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Encourage Technologies Co Ltd
TSE:3682
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Price: 652 JPY -1.81% Market Closed
Market Cap: ¥4.5B

EV/FCFF

0.9
Current
34%
More Expensive
vs 3-y average of 0.7

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
0.9
=
Enterprise Value
¥566.6m
/
Free Cash Flow to Firm
¥387.8m

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
0.9
=
Enterprise Value
¥566.6m
/
Free Cash Flow to Firm
¥387.8m

Valuation Scenarios

Encourage Technologies Co Ltd is trading above its 3-year average

If EV/FCFF returns to its 3-Year Average (0.7), the stock would be worth ¥487.04 (25% downside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-25%
Maximum Upside
+2 109%
Average Upside
1 017%
Scenario EV/FCFF Value Implied Price Upside/Downside
Current Multiple 0.9 ¥652
0%
3-Year Average 0.7 ¥487.04
-25%
5-Year Average 0.7 ¥487.04
-25%
Industry Average 19.9 ¥13 766
+2 011%
Country Average 20.9 ¥14 399.88
+2 109%

Forward EV/FCFF
Today’s price vs future free cash flow to firm

Not enough data available to calculate forward EV/FCFF

Peer Comparison

All Multiples
EV/FCFF
P/E
All Countries
Close
Market Cap EV/FCFF P/E
JP
Encourage Technologies Co Ltd
TSE:3682
4.3B JPY 0.9 17.9
US
Microsoft Corp
NASDAQ:MSFT
3.2T USD 39 25.3
US
Oracle Corp
NYSE:ORCL
471B USD -22.6 28.8
US
Palo Alto Networks Inc
NASDAQ:PANW
148.1B USD 39.8 97.5
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
114.6B USD 86.9 -691.7
US
ServiceNow Inc
NYSE:NOW
92.1B USD 18.8 51.5
US
VMware Inc
XETRA:BZF1
58B EUR 15.2 47.9
US
Fortinet Inc
NASDAQ:FTNT
64B USD 26.7 33.7
US
Xperi Holding Corp
LSE:0M2A
54.6B USD 367.5 491.7
CN
Knowledge Atlas Technology JSC Ltd
HKEX:2513
359.4B HKD -137.1 -66.6
CN
MiniMax Group Inc
HKEX:100
216.3B HKD -116.7 -14.7
P/E Multiple
Earnings Growth PEG
JP
Encourage Technologies Co Ltd
TSE:3682
Average P/E: 99.3
17.9
N/A N/A
US
Microsoft Corp
NASDAQ:MSFT
25.3
18%
1.4
US
Oracle Corp
NYSE:ORCL
28.8
37%
0.8
US
Palo Alto Networks Inc
NASDAQ:PANW
97.5
50%
1.9
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
Negative Multiple: -691.7 N/A N/A
US
ServiceNow Inc
NYSE:NOW
51.5
54%
1
US
V
VMware Inc
XETRA:BZF1
47.9
39%
1.2
US
Fortinet Inc
NASDAQ:FTNT
33.7
15%
2.2
US
Xperi Holding Corp
LSE:0M2A
491.7
N/A N/A
CN
K
Knowledge Atlas Technology JSC Ltd
HKEX:2513
Negative Multiple: -66.6 N/A N/A
CN
MiniMax Group Inc
HKEX:100
Negative Multiple: -14.7 N/A N/A

Market Distribution

Lower than 100% of companies in Japan
Percentile
0th
Based on 3 767 companies
0th percentile
0.9
Low
0 — 13.6
Typical Range
13.6 — 32.2
High
32.2 —
Distribution Statistics
Japan
Min 0
30th Percentile 13.6
Median 20.9
70th Percentile 32.2
Max 571 930 627.1

Encourage Technologies Co Ltd
Glance View

Market Cap
4.5B JPY
Industry
Technology

Encourage Technologies Co., Ltd. engages in the development, maintenance, and sale of computer software. The company is headquartered in Chuo-Ku, Tokyo-To and currently employs 129 full-time employees. The company went IPO on 2013-12-11. The Company’s business activities comprise packaged software business and system development service business. The packaged software business includes five divisions, including license division, maintenance support service division, cloud service division, consultant service division and SIO resident services division. The system development service business engages the consignment of system development services, the design and development of software, and dispatch engineers.

Intrinsic Value
491.53 JPY
Overvaluation 25%
Intrinsic Value
Price ¥652
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