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Densan System Holdings Co (TSE:4072) EV-to-EBIT Explanation
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
Densan System Holdings Co's Enterprise Value for the quarter that ended in Jun. 2026 was 円10,103 Mil.
Densan System Holdings Co's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was 円1,305 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Densan System Holdings Co EV-to-EBIT Related Terms
Densan System Holdings Co EV-to-EBIT Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Information Technology Services subindustry, Densan System Holdings Co's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Densan System Holdings Co EV-to-EBIT vs Software Industry
For the Software industry and Technology sector, Densan System Holdings Co's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Densan System Holdings Co's EV-to-EBIT falls into.
Densan System Holdings Co's current Enterprise Value is 円13,002 Mil.
Densan System Holdings Co's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was 円1,305 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Densan System Holdings Co (TSE:4072) has a EV-to-EBIT of 9.96 as of Aug. 23, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Densan System Holdings Co and its competitors. This is 87% above median its historical median of 5.32. Over the past decade, Densan System Holdings Co's EV-to-EBIT has ranged from 3.61 to 21.37. According to the industry distribution chart, Densan System Holdings Co ranks #633 out of 1782 companies in the Software industry, placing it in the top 35.5%.
Is Densan System Holdings Co's EV-to-EBIT too high?
Densan System Holdings Co's current EV-to-EBIT of 9.96 is 87% above median its 10-year median of 5.32. Over the past 10 years, this metric has ranged from a low of 3.61 to a high of 21.37. The Software industry median EV-to-EBIT is 13.60. Densan System Holdings Co's value of 9.96 is 26.8% below this industry median. Based on the distribution chart, Densan System Holdings Co ranks #633 out of 1782 companies in the Software industry, which is above the industry midpoint. Overall, Densan System Holdings Co has a GF Score™ of 54/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Densan System Holdings Co's EV-to-EBIT compare to IBM and ACN?
According to the Software industry distribution chart, Densan System Holdings Co ranks #633 out of 1782 companies for EV-to-EBIT. This puts Densan System Holdings Co in the upper half of its industry. The industry median EV-to-EBIT is 13.60. Densan System Holdings Co's value of 9.96 is 26.8% below this benchmark. Historically, Densan System Holdings Co's own EV-to-EBIT has ranged from 3.61 to 21.37 over the past decade. While the company's 10-year median is 5.32 vs. the industry median of 13.60, Densan System Holdings Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBIT for a Software company?
The median EV-to-EBIT among Software companies is 13.60, based on 1,782 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Densan System Holdings Co's current EV-to-EBIT of 9.96 is 26.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Densan System Holdings Co and its competitors. For the Software industry, the median EV-to-EBIT is 13.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Densan System Holdings Co's current EV-to-EBIT is 9.96, which is 87% above median its own 10-year median of 5.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Densan System Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Densan System Holdings Co (TSE:4072) is currently considered Fairly Valued. The stock's GF Value™ is 円3,212.36, compared to a current price of 円3,065.00 — trading 4.6% below its estimated fair value. The current EV-to-EBIT is 9.96, which is 87% above median its 10-year median of 5.32 and 26.8% below the Software industry median of 13.60. Densan System Holdings Co's overall GF Score™ is 54/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Densan System Holdings Co (TSE:4072), the current EV-to-EBIT is 9.96 as of Aug. 23, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Densan System Holdings Co (TSE:4072) Overvalued in 2026?
Based on GuruFocus' analysis, Densan System Holdings Co stock appears to be undervalued.
The current stock price of 円3,065.00 is trading 4.6% below its estimated GF Value™ of 円3,212.36.
GuruFocus considers Densan System Holdings Co to be Fairly Valued.
Key valuation signals for TSE:4072:
EV-to-EBIT: 9.96 (87% above median its 10-year median of 5.32)
GF Value™: 円3,212.36 vs. price of 円3,065.00 (4.6% below fair value)
Industry Position: 26.8% below the Software median (#633 of 1782)
No single metric tells the full story. See the TSE:4072 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Densan System Holdings Co Ltd is engaged in providing comprehensive information technology services. Its Payment Acceptance Service offers a wide variety of innovative settlement services.
54GF Score
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