Shinko (TSE:7120) EV-to-EBIT: 3.83 (As of Sep. 14, 2026) — 18% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

TSE:7120 Shinko Inc TSE:7120
85 GF Score
Price 円995.00
GF Value 円1,040.43
Valuation Fairly Valued
! 3 Warning Signs
View Full Analysis

What is Shinko EV-to-EBIT?

Shinko TSE:7120 85 EV-to-EBIT is 3.83 as of Sep. 14, 2026, which is 18% below its 10-year median of 4.65. GuruFocus rates TSE:7120 with a GF Score™ of 85/100 and a GF Value™ of 円1,040.43 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,768 Software companies, Shinko ranks better than 88.46% on this metric.

EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Shinko's Enterprise Value is 円3,377 Mil. Shinko's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 was 円883 Mil. Therefore, Shinko's EV-to-EBIT for today is 3.83.

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

TSE:7120' s EV-to-EBIT Range Over the Past 10 Years
Min: 2.79   Med: 4.65   Max: 22.38
Current: 3.83

During the past 6 years, the highest EV-to-EBIT of Shinko was 22.38. The lowest was 2.79. And the median was 4.65.

TSE:7120's EV-to-EBIT is ranked better than
88.46% of 1768 companies
in the Software industry
Industry Median: 13.695 vs TSE:7120: 3.83

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt) %. Shinko's Enterprise Value for the quarter that ended in Mar. 2026 was 円3,404 Mil. Shinko's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 was 円883 Mil. Shinko's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 25.93%.


Shinko  (TSE:7120) 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) %.

Shinko'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 )
=882.648/3404.348
=25.93 %

Shinko's Enterprise Value for the quarter that ended in Mar. 2026 was 円3,404 Mil.
Shinko'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883 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.


Shinko EV-to-EBIT Related Terms


Shinko EV-to-EBIT Historical Data

* Premium members only.

The historical data trend for Shinko'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.

Shinko EV-to-EBIT Chart

Shinko Annual Data
Trend Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
EV-to-EBIT
Get a 7-Day Free Trial 0.00 5.70 4.19 2.65 3.68

Shinko Quarterly Data
Mar21 Mar22 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 26.39 16.34 7.27 3.68 0.00

TSE:7120 vs IBM, ACN, CTSH: EV-to-EBIT Comparison

For the Information Technology Services subindustry, Shinko'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.


Shinko EV-to-EBIT vs Software Industry

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

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


TSE:7120
85GF Score
Shinko Inc TSE:7120
EV-to-EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Shinko EV-to-EBIT Calculation

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

EV-to-EBIT=Enterprise Value (Today)/EBIT (TTM)
=3377.335/882.648
=3.83

Shinko's current Enterprise Value is 円3,377 Mil.
Shinko'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883 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 3.83 mean?
Shinko (TSE:7120) has a EV-to-EBIT of 3.83 as of Sep. 14, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Shinko and its competitors. This is 18% below median its historical median of 4.65. Over the past decade, Shinko's EV-to-EBIT has ranged from 2.79 to 22.38. According to the industry distribution chart, Shinko ranks #204 out of 1768 companies in the Software industry, placing it in the top 11.5%.
Is Shinko's EV-to-EBIT too high?
Shinko's current EV-to-EBIT of 3.83 is 18% below median its 10-year median of 4.65. Over the past 10 years, this metric has ranged from a low of 2.79 to a high of 22.38. The Software industry median EV-to-EBIT is 13.70. Shinko's value of 3.83 is 72% below this industry median. Based on the distribution chart, Shinko ranks #204 out of 1768 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Shinko has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Shinko's EV-to-EBIT compare to IBM and ACN?
According to the Software industry distribution chart, Shinko ranks #204 out of 1768 companies for EV-to-EBIT. This places Shinko in the top 12% of its industry — outperforming the majority of peers. The industry median EV-to-EBIT is 13.70. Shinko's value of 3.83 is 72% below this benchmark. Historically, Shinko's own EV-to-EBIT has ranged from 2.79 to 22.38 over the past decade. While the company's 10-year median is 4.65 vs. the industry median of 13.70, Shinko 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 13.70, based on 1,768 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. Shinko's current EV-to-EBIT of 3.83 is 72% 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 Shinko and its competitors. For the Software industry, the median EV-to-EBIT is 13.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shinko's current EV-to-EBIT is 3.83, which is 18% below median its own 10-year median of 4.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shinko stock overvalued right now?
Based on GuruFocus' analysis, Shinko (TSE:7120) is currently considered Fairly Valued. The stock's GF Value™ is 円1,040.43, compared to a current price of 円995.00 — trading 4.4% below its estimated fair value. The current EV-to-EBIT is 3.83, which is 18% below median its 10-year median of 4.65 and 72% below the Software industry median of 13.70. Shinko's overall GF Score™ is 85/100 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 Shinko (TSE:7120), the current EV-to-EBIT is 3.83 as of Sep. 14, 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 Shinko (TSE:7120) Overvalued in 2026?

Based on GuruFocus' analysis, Shinko stock appears to be undervalued. The current stock price of 円995.00 is trading 4.4% below its estimated GF Value™ of 円1,040.43. GuruFocus considers Shinko to be Fairly Valued.

Key valuation signals for TSE:7120:

  • EV-to-EBIT: 3.83 (18% below median its 10-year median of 4.65)
  • GF Value™: 円1,040.43 vs. price of 円995.00 (4.4% below fair value)
  • GF Score™: 85/100 with 3 warning signs
  • Industry Position: 72% below the Software median (#204 of 1768)

No single metric tells the full story. See the TSE:7120 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Shinko Business Description

Address 8F CS Tower, 5-20-8 Asakusabashi, Taito-ku, Tokyo, JPN, 111-0053
Shinko Inc is engaged in providing maintenance services for IT equipment and Staffing services. The company's services and products include; Maintenance services, human resource services, Introduction design and installation development services, and Network security-related products. The Maintenance services include Onsite maintenance service, Help desk service, Remote monitoring service, and call center service. The human resource services include an Engineer dispatch service and a Business contract. The Introduction design and installation development services include Network design and construction, Wireless environment construction, and Communication system construction.
85GF Score

Get the complete analysis for TSE:7120

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

円995.00
Price
円1,040.43
GF Value