AI (TSE:4388) EV-to-EBIT: 7.53 (As of Aug. 29, 2026) — 79% Below Median

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TSE:4388 AI Inc TSE:4388
73 GF Score
Price 円370.00
GF Value 円1,113.34
Valuation Significantly Undervalued
! 5 Warning Signs
View Full Analysis

What is AI EV-to-EBIT?

AI TSE:4388 -0.80% 73 EV-to-EBIT is 7.53 as of Aug. 29, 2026, which is 79% below its 10-year median of 36.29. GuruFocus rates TSE:4388 with a GF Score™ of 73/100 and a GF Value™ of 円1,113.34 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 1,799 Hardware companies, AI ranks better than 80.1% on this metric.

EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, AI's Enterprise Value is 円942 Mil. AI's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 was 円125 Mil. Therefore, AI's EV-to-EBIT for today is 7.53.

The historical rank and industry rank for AI's EV-to-EBIT or its related term are showing as below:

TSE:4388' s EV-to-EBIT Range Over the Past 10 Years
Min: -52.91   Med: 36.29   Max: 368.82
Current: 7.53

During the past 11 years, the highest EV-to-EBIT of AI was 368.82. The lowest was -52.91. And the median was 36.29.

TSE:4388's EV-to-EBIT is ranked better than
80.1% of 1799 companies
in the Hardware industry
Industry Median: 18.88 vs TSE:4388: 7.53

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt) %. AI's Enterprise Value for the quarter that ended in Mar. 2026 was 円1,053 Mil. AI's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 was 円125 Mil. AI's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 11.88%.


AI  (TSE:4388) 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.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt) %.

AI's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

Earnings Yield (Joel Greenblatt) % (Q: Mar. 2026 ) =EBIT / Enterprise Value (Q: Mar. 2026 )
=125.152/1053.063
=11.88 %

AI's Enterprise Value for the quarter that ended in Mar. 2026 was 円1,053 Mil.
AI's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was 円125 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.


AI EV-to-EBIT Related Terms


AI EV-to-EBIT Historical Data

* Premium members only.

The historical data trend for AI's EV-to-EBIT can be seen below:

* 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.

AI EV-to-EBIT Chart

AI Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
EV-to-EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 31.60 236.12 38.09 -102.53 9.70

AI Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
EV-to-EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -34.22 224.51 16.63 9.70 0.00

TSE:4388 vs CSCO, MSI, HPE: EV-to-EBIT Comparison

For the Communication Equipment subindustry, AI'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.


AI EV-to-EBIT vs Hardware Industry

For the Hardware industry and Technology sector, AI's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where AI's EV-to-EBIT falls into.


TSE:4388
73GF Score
AI Inc TSE:4388
EV-to-EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

AI EV-to-EBIT Calculation

AI's EV-to-EBIT for today is calculated as:

EV-to-EBIT=Enterprise Value (Today)/EBIT (TTM)
=942.199/125.152
=7.53

AI's current Enterprise Value is 円942 Mil.
AI's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was 円125 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.

Frequently Asked Questions Learn more about EV-to-EBIT →
What does a EV-to-EBIT of 7.53 mean?
AI (TSE:4388) has a EV-to-EBIT of 7.53 as of Aug. 29, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on AI and its competitors. This is 79% below median its historical median of 36.29. According to the industry distribution chart, AI ranks #358 out of 1799 companies in the Hardware industry, placing it in the top 19.9%.
Is AI's EV-to-EBIT too high?
AI's current EV-to-EBIT of 7.53 is 79% below median its 10-year median of 36.29. The Hardware industry median EV-to-EBIT is 18.88. AI's value of 7.53 is 60.1% below this industry median. Based on the distribution chart, AI ranks #358 out of 1799 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, AI has a GF Score™ of 73/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does AI's EV-to-EBIT compare to CSCO and MSI?
According to the Hardware industry distribution chart, AI ranks #358 out of 1799 companies for EV-to-EBIT. This places AI in the top 20% of its industry — outperforming the majority of peers. The industry median EV-to-EBIT is 18.88. AI's value of 7.53 is 60.1% below this benchmark. While the company's 10-year median is 36.29 vs. the industry median of 18.88, AI 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 Hardware company?
The median EV-to-EBIT among Hardware companies is 18.88, based on 1,799 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. AI's current EV-to-EBIT of 7.53 is 60.1% 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 AI and its competitors. For the Hardware industry, the median EV-to-EBIT is 18.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AI's current EV-to-EBIT is 7.53, which is 79% below median its own 10-year median of 36.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AI stock overvalued right now?
Based on GuruFocus' analysis, AI (TSE:4388) is currently considered Significantly Undervalued. The stock's GF Value™ is 円1,113.34, compared to a current price of 円370.00 — trading 66.8% below its estimated fair value. The current EV-to-EBIT is 7.53, which is 79% below median its 10-year median of 36.29 and 60.1% below the Hardware industry median of 18.88. AI's overall GF Score™ is 73/100 with 5 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 AI (TSE:4388), the current EV-to-EBIT is 7.53 as of Aug. 29, 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 AI (TSE:4388) Overvalued in 2026?

Based on GuruFocus' analysis, AI stock appears to be undervalued. The current stock price of 円370.00 is trading 66.8% below its estimated GF Value™ of 円1,113.34. GuruFocus considers AI to be Significantly Undervalued.

Key valuation signals for TSE:4388:

  • EV-to-EBIT: 7.53 (79% below median its 10-year median of 36.29)
  • GF Value™: 円1,113.34 vs. price of 円370.00 (66.8% below fair value)
  • GF Score™: 73/100 with 5 warning signs
  • Industry Position: 60.1% below the Hardware median (#358 of 1799)

No single metric tells the full story. See the TSE:4388 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


AI Business Description

Address KDX Kasuga Building, 10th Floor, 1-15-15 Nishikata, Bunkyo Ward, Tokyo, JPN, 113-0024
AI Inc provides and develops voice synthesis systems and consults related business services in Japan. The company provides a high-quality speech synthesis engine capable of freely synthesizing speech with more human-like natural speech, employing a corpus-based speech synthesis method that combines human voice rather than conventional machine sound. The company's product includes AlTalk, AlTalk SDK, AlTalk Server, and AlTalk Custom Voice.
73GF Score

Get the complete analysis for TSE:4388

EV-to-EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円370.00
Price
円1,113.34
GF Value