– Japanese video game developer with a rich portfolio of IP-able games.
– Multiple ways to win with the Final Fantasy franchise alone are worth almost 2x current EV.
– It’s a high-quality franchise with subscription-based revenues and leading gamer engagement/monetization stats globally.
– The underperformance in the HD games segment is temporary.
– At 1.6 revenues market implies it is a structurally low-margin video game company, which is not the case at all.
– With a revenue CAGR of 17% would reach $5.1bn in revenues by FY26.
– With a 3.6x revenue multiple, it would be an $18.8bn company.
– 44% IRR from today’s EV of $4.2bn.
Exp. gain: 4x by 2026.
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