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Square Enix Holdings Co Ltd
XBER:EI4

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Square Enix Holdings Co Ltd
XBER:EI4
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Price: 15.53 EUR
Market Cap: €2.9B

EV/OCF

15
Current
5%
More Expensive
vs 3-y average of 14.4

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
15
=
Enterprise Value
€646.1B
/
Operating Cash Flow
¥44.9B

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
15
=
Enterprise Value
€646.1B
/
Operating Cash Flow
¥44.9B

Valuation Scenarios

Square Enix Holdings Co Ltd is trading above its 3-year average

If EV/OCF returns to its 3-Year Average (14.4), the stock would be worth €14.85 (4% downside from current price).

Statistics
Positive Scenarios
1/4
Maximum Downside
-24%
Maximum Upside
+6%
Average Downside
7%
Scenario EV/OCF Value Implied Price Upside/Downside
Current Multiple 15 €15.53
0%
3-Year Average 14.4 €14.85
-4%
5-Year Average 16 €16.48
+6%
Industry Average 14 €14.44
-7%
Country Average 11.4 €11.77
-24%

Forward EV/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward EV/OCF

Peer Comparison

All Multiples
EV/OCF
P/E
All Countries
Close
Market Cap EV/OCF P/E
JP
Square Enix Holdings Co Ltd
XBER:EI4
927.1B EUR 15 36.6
US
Activision Blizzard Inc
LSE:0H8X
74.1B USD 25.4 34.2
CN
NetEase Inc
NASDAQ:NTES
74B USD 6.8 14.9
JP
Nintendo Co Ltd
TSE:7974
9.8T JPY 46.3 24.5
SG
Sea Ltd
NYSE:SE
51.4B USD 8.3 32.1
US
Electronic Arts Inc
NASDAQ:EA
50.9B USD 19.6 74.8
US
Roblox Corp
NYSE:RBLX
43.4B USD 23.2 -40.7
US
Take-Two Interactive Software Inc
NASDAQ:TTWO
40.3B USD 61 -10.2
CN
Zhejiang Century Huatong Group Co Ltd
SZSE:002602
124.9B CNY 14.9 33.2
JP
Konami Holdings Corp
TSE:9766
2.7T JPY 20.5 31.9
JP
Nexon Co Ltd
TSE:3659
2.2T JPY 7.6 23.5

Market Distribution

Lower than 100% of companies in Japan
Percentile
0th
Based on 4 586 companies
0th percentile
0
Low
0 — 8.2
Typical Range
8.2 — 16.2
High
16.2 —
Distribution Statistics
Japan
Min 0
30th Percentile 8.2
Median 11.4
70th Percentile 16.2
Max 277 515 327.6

Square Enix Holdings Co Ltd
Glance View

Square Enix Holdings Co Ltd emerged from the vibrant intersection of creativity and commerce, drawing from a rich legacy steeped in the world of digital entertainment. Founded in 2003 after the merger of Square Co. and Enix Corporation, two giants of the Japanese gaming industry, the company continues to captivate audiences worldwide. With blockbuster franchises like "Final Fantasy," "Dragon Quest," and "Tomb Raider," Square Enix has crafted immersive worlds that draw users into their narratives, cementing its presence across various gaming platforms. The company's operations extend beyond mere game development; it strategically divides activities across video games, amusement facilities, publication of comic books, and merchandise, thereby diversifying revenue streams and mitigating risk inherent within the volatile gaming market. In its quest for new frontiers, Square Enix has embraced the digital transformation sweeping the entertainment sector. By expanding into online and mobile gaming, alongside traditional console and PC gaming markets, the company has captured a broader consumer base, thus enhancing its revenue potential. Square Enix's financial model is sustained through direct-to-consumer sales, digital downloads, licensing agreements, and a subscription model via its online games. Additionally, by leveraging beloved intellectual properties across different media, such as animation and merchandising, Square Enix not only maximizes the lifespan of its popular franchises but also garners fans' loyalty, transforming narrative worlds into profitable ecosystems.

EI4 Intrinsic Value
9.64 EUR
Overvaluation 38%
Intrinsic Value
Price €15.53
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