We've been asking ourselves recently if the market has placed a fair valuation on Nintendo Co. Let's dive into some of the fundamental values of this Large-Cap Communication Services company to determine if there might be an opportunity here for value-minded investors.
Nintendo Co., Ltd., together with its subsidiaries, develops, manufactures, and sells home entertainment products in Japan, the Americas, Europe, and internationally. The company belongs to the Communication Services sector, which has an average price to earnings (P/E) ratio of 18.85 and an average price to book (P/B) ratio of 3.12. In contrast, Nintendo Co has a trailing 12 month P/E ratio of 14.6 and a P/B ratio of 0.02.
P/B ratios are calculated by dividing the company's market value by its equity's book value. Equity refers to all of the company's assets minus its liabilities. Traditionally, a P/B ratio of around 1 shows that a company is fairly valued, but owing to consistently higher valuations in the modern era, investors generally compare against sector averages.
Nintendo Co has moved -5.6% over the last year compared to 2.7% for the S&P 500 — a difference of -8.0%. Nintendo Co has a 52 week high of $47.1 and a 52 week low of $37.25.
