Encourage Technologies Co Ltd
TSE:3682

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

EV/IC

0.4
Current
102%
More Expensive
vs 3-y average of 0.2

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
0.4
=
Enterprise Value
¥566.6m
/
Invested Capital
¥907.1m

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
0.4
=
Enterprise Value
¥566.6m
/
Invested Capital
¥907.1m

Valuation Scenarios

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

If EV/IC returns to its 3-Year Average (0.2), the stock would be worth ¥322.42 (51% downside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-51%
Maximum Upside
+546%
Average Upside
148%
Scenario EV/IC Value Implied Price Upside/Downside
Current Multiple 0.4 ¥652
0%
3-Year Average 0.2 ¥322.42
-51%
5-Year Average 0.2 ¥369.89
-43%
Industry Average 2.6 ¥4 211.58
+546%
Country Average 1 ¥1 551.12
+138%

Forward EV/IC
Today’s price vs future invested capital

Not enough data available to calculate forward EV/IC

Peer Comparison

All Multiples
EV/IC
P/E
All Countries
Close
Market Cap EV/IC P/E
JP
Encourage Technologies Co Ltd
TSE:3682
4.3B JPY 0.4 17.9
US
Microsoft Corp
NASDAQ:MSFT
3.1T USD 5.3 24.6
US
Oracle Corp
NYSE:ORCL
494B USD 3 30.5
US
Palo Alto Networks Inc
NASDAQ:PANW
147.8B USD 7.2 99.3
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
115.4B USD 19.3 -710.4
US
ServiceNow Inc
NYSE:NOW
94.5B USD 4.8 53.8
US
VMware Inc
XETRA:BZF1
58B EUR 2.8 47.9
US
Fortinet Inc
NASDAQ:FTNT
64.1B USD 9.3 34.6
US
Xperi Holding Corp
LSE:0M2A
54.6B USD 61.1 491.7
CN
Knowledge Atlas Technology JSC Ltd
HKEX:2513
382.1B HKD 182.6 -70.8
CN
MiniMax Group Inc
HKEX:100
217.8B HKD 430.2 -14.8
P/E Multiple
Earnings Growth PEG
JP
Encourage Technologies Co Ltd
TSE:3682
Average P/E: 100
17.9
N/A N/A
US
Microsoft Corp
NASDAQ:MSFT
24.6
18%
1.4
US
Oracle Corp
NYSE:ORCL
30.5
37%
0.8
US
Palo Alto Networks Inc
NASDAQ:PANW
99.3
50%
2
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
Negative Multiple: -710.4 N/A N/A
US
ServiceNow Inc
NYSE:NOW
53.8
54%
1
US
V
VMware Inc
XETRA:BZF1
47.9
39%
1.2
US
Fortinet Inc
NASDAQ:FTNT
34.6
15%
2.3
US
Xperi Holding Corp
LSE:0M2A
491.7
N/A N/A
CN
K
Knowledge Atlas Technology JSC Ltd
HKEX:2513
Negative Multiple: -70.8 N/A N/A
CN
MiniMax Group Inc
HKEX:100
Negative Multiple: -14.8 N/A N/A

Market Distribution

Lower than 90% of companies in Japan
Percentile
10th
Based on 5 142 companies
10th percentile
0.4
Low
0 — 0.7
Typical Range
0.7 — 1.5
High
1.5 —
Distribution Statistics
Japan
Min 0
30th Percentile 0.7
Median 1
70th Percentile 1.5
Max 23 050 349

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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