Capcom (TSE:9697) Valuation Check as New Sci‑Fi IP PRAGMATA Targets 2026 Multi‑Platform Launch

Capcom (TSE:9697) just put fresh fuel under its long term growth story by unveiling PRAGMATA, a new sci fi IP slated for April 2026, with a PC demo launching now.

See our latest analysis for Capcom.

Despite the buzz around PRAGMATA, Capcom’s recent share price return has cooled, with a 30 day share price return of minus 11.46 percent and a 90 day share price return of minus 14.19 percent. However, its five year total shareholder return of 125.32 percent still points to strong long term momentum.

If you like Capcom’s blend of franchises and new IP but want to see what else the market is offering, now could be a good time to explore high growth tech and AI stocks.

With earnings still growing, the share price pulling back and the stock trading at a sizable discount to analyst targets, is Capcom now an overlooked growth story, or are markets already pricing in its next leg higher?

Most Popular Narrative: 24.6% Undervalued

Capcom's most followed narrative sees its fair value well above the last close of ¥3,483, framing the recent pullback as a potential mispricing.

The analysts have a consensus price target of ¥4624.0 for Capcom based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of ¥5400.0, and the most bearish reporting a price target of just ¥3800.0.

Read the complete narrative.

Want to see what kind of revenue runway and margin lift justify this punchy outlook, and why the future earnings multiple needs to stretch higher? Dive in.

Result: Fair Value of ¥4,620.63 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this upbeat scenario could unravel if core franchises show fatigue or if ballooning development and talent costs squeeze the margin gains analysts are banking on.

Find out about the key risks to this Capcom narrative.

Another View: DCF Flags Overvaluation

Our DCF model paints a cooler picture, putting fair value closer to ¥1,900 versus today’s ¥3,483. This suggests Capcom could be materially overvalued on cash flow assumptions even as analysts see upside on earnings multiples. Which story feels closer to reality?

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 Capcom 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 913 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Capcom Narrative

If you want to stress test these assumptions or dig into the numbers yourself, you can build a personalized view in minutes: Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Capcom.

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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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