Nintendo (7974)
Nintendo's TTM EPS has kept rising since Nov-25. Yet the share price and PER moved the opposite way over the same stretch TTM PER now sits around 20x, roughly back to where it was before Switch 2 launched in 2024.
In other words, the growth premium the market had assigned to Nintendo over the past year has largely come off, at least by the numbers.
Two readings are possible.
One: the prior multiple was simply overextended, and this is a normalization. Two: guidance for FY2027 calls for hardware unit sales down roughly 17% y/y, alongside margin compression from rising component costs so the multiple compression may reflect a genuine repricing of slower forward growth, not just sentiment cooling.
Which reading holds will likely become clearer with the August Q1 print.
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