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Nintendo Co Ltd
TSE:7974

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Nintendo Co Ltd
TSE:7974
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Price: 7 597 JPY -1.17% Market Closed
Market Cap: ¥8.8T

P/FCFE

66.4
Current
210%
More Expensive
vs 3-y average of 21.4

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
66.4
=
Market Cap
¥9.9T
/
Free Cash Flow to Equity
¥133.2B

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
66.4
=
Market Cap
¥9.9T
/
Free Cash Flow to Equity
¥133.2B

Valuation Scenarios

Nintendo Co Ltd is trading above its 3-year average

If P/FCFE returns to its 3-Year Average (21.4), the stock would be worth ¥2 452.5 (68% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-69%
Maximum Upside
No Upside Scenarios
Average Downside
67%
Scenario P/FCFE Value Implied Price Upside/Downside
Current Multiple 66.4 ¥7 597
0%
3-Year Average 21.4 ¥2 452.5
-68%
5-Year Average 20.4 ¥2 335.45
-69%
Industry Average 22.6 ¥2 586.02
-66%
Country Average 22.4 ¥2 557.67
-66%

Forward P/FCFE
Today’s price vs future free cash flow to equity

Not enough data available to calculate forward P/FCFE

Peer Comparison

All Multiples
P/FCFE
P/E
All Countries
Close
Market Cap P/FCFE P/E
JP
Nintendo Co Ltd
TSE:7974
8.8T JPY 66.4 22.1
CN
NetEase Inc
NASDAQ:NTES
76B USD 12.2 15.4
US
Activision Blizzard Inc
LSE:0H8X
74.1B USD 30.3 34.2
US
Electronic Arts Inc
NASDAQ:EA
50.5B USD 22.3 74.3
SG
Sea Ltd
NYSE:SE
52.7B USD 9.9 29.8
US
Take-Two Interactive Software Inc
NASDAQ:TTWO
40B USD -356.4 -10.1
US
Roblox Corp
NYSE:RBLX
32B USD 24.3 -30
CN
Zhejiang Century Huatong Group Co Ltd
SZSE:002602
118B CNY 15.9 18.8
JP
Konami Holdings Corp
TSE:9766
2.6T JPY 106 29.9
JP
Nexon Co Ltd
TSE:3659
2.1T JPY 13.2 22.3
JP
Konami Group Corp
XMUN:KOA
8.7B EUR 65.5 18.5
P/E Multiple
Earnings Growth PEG
JP
Nintendo Co Ltd
TSE:7974
Average P/E: 29.5
22.1
26%
0.8
CN
NetEase Inc
NASDAQ:NTES
15.4
14%
1.1
US
A
Activision Blizzard Inc
LSE:0H8X
34.2
36%
1
US
Electronic Arts Inc
NASDAQ:EA
74.3
32%
2.3
SG
Sea Ltd
NYSE:SE
29.8
23%
1.3
US
Take-Two Interactive Software Inc
NASDAQ:TTWO
Negative Multiple: -10.1 N/A N/A
US
Roblox Corp
NYSE:RBLX
Negative Multiple: -30 N/A N/A
CN
Z
Zhejiang Century Huatong Group Co Ltd
SZSE:002602
18.8
N/A N/A
JP
Konami Holdings Corp
TSE:9766
29.9
22%
1.4
JP
N
Nexon Co Ltd
TSE:3659
22.3
18%
1.2
JP
K
Konami Group Corp
XMUN:KOA
18.5
22%
0.8

Market Distribution

Higher than 86% of companies in Japan
Percentile
86th
Based on 3 849 companies
86th percentile
66.4
Low
0.1 — 14.9
Typical Range
14.9 — 35
High
35 —
Distribution Statistics
Japan
Min 0.1
30th Percentile 14.9
Median 22.4
70th Percentile 35
Max 736 044 589.7

Nintendo Co Ltd
Glance View

Nintendo Co., Ltd. began as a humble playing card company in Kyoto in 1889, founded by Fusajiro Yamauchi. Over time, it has astutely navigated the ever-shifting tides of entertainment, emerging as a global titan in the world of interactive entertainment. The company initially experimented with various niche markets, but its transformation began in earnest in the mid-20th century, as it delved into electronic entertainment. By tapping into the burgeoning video game market, Nintendo showcased its knack for reinvention. Its enduring success rests on a steady pipeline of innovative hardware and captivating software, stimulating and capturing the imaginations of generations. Nintendo crafts its narrative through both a revered stable of iconic game franchises and cutting-edge consoles. Its business model hinges largely on the symbiotic relationship between hardware sales and software success. Products like the Nintendo Switch serve as gateways, drawing consumers to its ecosystem with experiences that transcend traditional gaming boundaries. The company thrives on developing first-party blockbuster titles such as "The Legend of Zelda" and "Super Mario," which not only drive game sales but also generate substantial revenue through licensing and merchandise. Its amiibo line of interactive figurines and mobile apps—in partnership with well-known IPs like Pokémon—further exemplify Nintendo's strategy of weaving its beloved characters into diverse revenue streams. Nintendo’s unwavering blend of nostalgia, innovation, and strategic branding truly defines its position in the competitive landscape of entertainment.

Intrinsic Value
9 659.4 JPY
Undervaluation 21%
Intrinsic Value
Price ¥7 597
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