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NEC Corp
XHAM:NEC1

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NEC Corp
XHAM:NEC1
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Price: 25.52 EUR 6.24%
Market Cap: €4.3B

EV/EBIT

18.9
Current
25%
More Expensive
vs 3-y average of 15.1

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
18.9
=
Enterprise Value
€4.9T
/
EBIT
¥315.5B

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
18.9
=
Enterprise Value
€4.9T
/
EBIT
¥315.5B

Valuation Scenarios

NEC Corp is trading above its 3-year average

If EV/EBIT returns to its 3-Year Average (15.1), the stock would be worth €20.48 (20% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-37%
Maximum Upside
No Upside Scenarios
Average Downside
29%
Scenario EV/EBIT Value Implied Price Upside/Downside
Current Multiple 18.9 €25.52
0%
3-Year Average 15.1 €20.48
-20%
5-Year Average 12 €16.17
-37%
Industry Average 12.6 €17
-33%
Country Average 13.6 €18.45
-28%

Forward EV/EBIT
Today’s price vs future ebit

Today's Enterprise Value EBIT Forward EV/EBIT
€4.9T
/
Jan 2026
¥315.5B
=
18.9
Current
€4.9T
/
Mar 2026
¥338.4B
=
14.6
Forward
€4.9T
/
Mar 2027
¥414.1B
=
11.9
Forward
€4.9T
/
Mar 2028
¥414.1B
=
11.9
Forward

Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.

Peer Comparison

All Multiples
EV/EBIT
P/E
All Countries
Close
Market Cap EV/EBIT P/E
JP
NEC Corp
XHAM:NEC1
6T EUR 18.9 24.5
US
International Business Machines Corp
NYSE:IBM
216.8B USD 23.5 20.2
JP
BrainPad Inc
TSE:3655
20.9T JPY 52.7 551.4
IE
Accenture PLC
NYSE:ACN
109.7B USD 9.3 14.3
IN
Tata Consultancy Services Ltd
NSE:TCS
9.1T INR 12.5 18
IN
Infosys Ltd
NSE:INFY
5T INR 12.4 16.7
JP
Fujitsu Ltd
TSE:6702
6.5T JPY 16.5 13.7
IN
HCL Technologies Ltd
NSE:HCLTECH
3.4T INR 13.3 20.1
JP
NTT Data Group Corp
DUS:NT5
30.3B EUR 21 38.8
JP
NTT Data Corp
TSE:9613
5.6T JPY 21.1 39.1
US
Cognizant Technology Solutions Corp
NASDAQ:CTSH
26.4B USD 7.5 11.8

Market Distribution

Lower than 100% of companies in Japan
Percentile
0th
Based on 4 801 companies
0th percentile
0
Low
0.1 — 9.8
Typical Range
9.8 — 18.1
High
18.1 —
Distribution Statistics
Japan
Min 0.1
30th Percentile 9.8
Median 13.6
70th Percentile 18.1
Max 414 821 439

NEC Corp
Glance View

In the bustling corridors of technological innovation, NEC Corporation stands as a venerable pillar, deeply rooted in Japan yet extending its reach globally. Founded in 1899, originally as Nippon Electric Company, NEC has evolved from manufacturing telephones to becoming a multifaceted force in the fields of information and communications technology. Today, it harmonizes advancements in diverse arenas such as telecommunications, IT services, and hardware manufacturing. NEC leverages its expertise to offer solutions that power everything from critical network infrastructure to cutting-edge artificial intelligence applications. The company orchestrates a seamless integration of technology to solve complex societal challenges, all while enhancing connectivity and efficiency across industries. Revenue streams for NEC are as diversified as its offerings. The company's core earnings are derived from its Systems Platform Business, which focuses on IT systems, support services, and Internet solutions for enterprises and government agencies. Alongside this, its Network Services Business provides telecommunications equipment and network infrastructure that cater to an ever-growing demand for high-speed connectivity. NEC also capitalizes on emerging technologies, most notably within its Public Business, through platforms designed for sectors such as biometric authentication, cybersecurity, and smart urban planning. Through its dynamic portfolio and strategic global partnerships, NEC continues to manifest growth and stability, positioning itself as a leader in driving the integration of digital technologies into a rapidly transforming world.

NEC1 Intrinsic Value
21.29 EUR
Overvaluation 17%
Intrinsic Value
Price €25.52
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