Assessing Kakaku.com (TSE:2371) Valuation After Recent Share Price Softness

Kakaku.com (TSE:2371) has drawn fresh investor attention after recent share performance data showed a small daily decline and mixed returns across the past week, month, and past 3 months, prompting closer scrutiny of its fundamentals.

See our latest analysis for Kakaku.com.

At a share price of ¥2,296, Kakaku.com’s recent 1 day share price return of a 0.46% decline and 90 day share price return of a 9.09% decline contrast with a 1 year total shareholder return of 2.16% and 3 year total shareholder return of 20.26%. This suggests shorter term momentum is fading while longer term holders have still seen gains.

If Kakaku.com’s recent moves have you thinking about where else opportunity might sit, this could be a good moment to broaden your search with fast growing stocks with high insider ownership.

With Kakaku.com trading at ¥2,296 and data pointing to an estimated intrinsic value and analyst targets at a higher level, the key question is whether the stock still offers value or if the market is already pricing in future growth.

Most Popular Narrative Narrative: 24.3% Undervalued

At ¥2,296, Kakaku.com is set against a widely followed fair value estimate of ¥3,035, putting a sizeable valuation gap in focus for investors.

Analysts are assuming Kakaku.com's revenue will grow by 14.4% annually over the next 3 years.

Analysts assume that profit margins will shrink from 24.5% today to 23.3% in 3 years time.

Read the complete narrative.

Curious what earnings path and profit profile sit behind that higher valuation anchor, and how a richer future P/E ties it all together, without any share dilution baked in?

Result: Fair Value of ¥3,035 (UNDERVALUED)

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

However, this hinges on Kyujin Box turning heavy investment into sustainable profits, and on Kakaku.com easing its reliance on Kakaku.com and Tabelog for future growth.

Find out about the key risks to this Kakaku.com narrative.

Build Your Own Kakaku.com Narrative

If this view does not quite fit how you see Kakaku.com, you can shape your own story around the numbers in just a few minutes, starting with Do it your way.

A great starting point for your Kakaku.com research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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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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