Nintendo's stock price has declined 39% over the past year, despite revenue nearly doubling due to Switch 2 momentum. The company's PEG ratio sits at 0.34, the lowest growth-adjusted valuation among Japan's profitable videogame publishers. With a fair value of ¥9,486 and analyst targets pointing to ¥10,172, the disconnect between fundamentals and price is the widest in the sector.
Revenue Growth
Nintendo's revenue has moved from ¥1.16T in FY25 to ¥2.31T in FY26, a near-doubling that no other Japanese publisher comes close to matching. The company's EPS trajectory shows a V-shaped recovery from the FY25 trough back to ¥365 in FY26, with consensus projecting ¥434 for FY27 and ¥506 for FY28.
Valuation
Nintendo's valuation prices in almost none of the cycle's upside, with the market effectively pricing FY28 EPS of ¥506 at roughly 17x. The company has a fortress balance sheet, with zero debt and a 3.7x current ratio. At ¥8,580, Nintendo's stock price remains undervalued, with a 10.6% fair value upside and a PEG ratio of 0.34.