Konami Group (TSE:9766) Following Strong First Quarter Results Is The Valuation Still Fair

Konami Group (TSE:9766) drew fresh attention after reporting first quarter revenue of ¥129,524 million and net income of ¥32,574 million, with basic earnings per share from continuing operations of ¥240.3.

See our latest analysis for Konami Group.

Since those first quarter numbers were released on 30 July 2026, Konami Group’s share price has picked up momentum, with a 1 month share price return of 16.89% and a 3 month share price return of 6.83%, even though the 1 year total shareholder return is down 10.83% and the 3 year total shareholder return is up 174.24%.

If this earnings reaction has you looking for other opportunities, it could be a good time to scan the market using the 10 top founder-led companies

Konami Group’s sharp first quarter uplift and recent share price jump put the focus squarely on what you are paying for that momentum today. Do the current numbers still leave enough upside to justify the risk?

Price-to-Earnings of 26x: Is it justified?

Konami Group shares last closed at ¥21,660 and are being assessed against a P/E of 26x. That level sits above several key comparison points and suggests the market is paying a relatively full price for current earnings.

The P/E multiple expresses how much investors are willing to pay for each unit of current earnings. For a company like Konami Group, with businesses across digital entertainment, arcade, gaming systems and sports, this often reflects expectations around future profit growth and the durability of those earnings.

Here the P/E of 26x is described as expensive versus the Japanese entertainment industry average of 16.3x and also above a peer average of 24.3x. It is also slightly higher than an estimated fair P/E of 25.8x, which suggests only a small gap between the current market pricing and a level our models indicate the market could move towards if sentiment cooled or earnings expectations changed.

Explore the SWS fair ratio for Konami Group

Result: Price-to-Earnings of 26x (OVERVALUED)

However, Konami Group’s premium P/E and reliance on digital entertainment and gaming systems leave the story exposed if consumer demand or content pipelines disappoint.

Find out about the key risks to this Konami Group narrative.

Another view on Konami Group’s value

While the 26x P/E suggests Konami Group is priced at a premium, the SWS DCF model points in a different direction. With the share price at ¥21,660 versus an estimated future cash flow value of ¥22,867.45, the stock screens as trading about 5.3% below that estimate. Which signal do you trust more when short term momentum cools?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Konami Group for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 19 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

If the mixed signals around Konami Group leave you unsure, start by looking at the core data yourself and move quickly to shape your own view. A simple way to frame the debate is to weigh its potential upsides against the issues on investors’ minds through the 4 key rewards and 1 important warning sign

Looking for more investment ideas beyond Konami Group?

If Konami Group has sharpened your focus, do not stop there. Use these curated ideas to widen your watchlist and avoid missing potential standouts.

• Target resilience first by checking companies screened in the 55 resilient stocks with low risk scores.
• Spot potential value by reviewing the 19 high quality undervalued stocks that combine quality fundamentals with attractive pricing.
• Prioritise financial strength through the solid balance sheet and fundamentals stocks screener (41 results) to see which businesses back their story with robust balance sheets.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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