AI (TSE:4388) EV-to-EBITDA: 3.95 (As of Aug. 30, 2026) — 89% Below Median

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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:4388 AI Inc TSE:4388
73 GF Score
Price 円370.00
GF Value 円1,113.90
Valuation Significantly Undervalued
! 5 Warning Signs
View Full Analysis

What is AI EV-to-EBITDA?

AI TSE:4388 -0.80% 73 EV-to-EBITDA is 3.95 as of Aug. 30, 2026, which is 89% below its 10-year median of 35.33. GuruFocus rates TSE:4388 with a GF Score™ of 73/100 and a GF Value™ of 円1,113.90 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 1,910 Hardware companies, AI ranks better than 87.54% on this metric.

EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, AI's enterprise value is 円942 Mil. AI's EBITDA for the trailing twelve months (TTM) ended in Mar. 2026 was 円239 Mil. Therefore, AI's EV-to-EBITDA for today is 3.95.

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

TSE:4388' s EV-to-EBITDA Range Over the Past 10 Years
Min: -63.95   Med: 35.33   Max: 368.82
Current: 3.95

During the past 11 years, the highest EV-to-EBITDA of AI was 368.82. The lowest was -63.95. And the median was 35.33.

TSE:4388's EV-to-EBITDA is ranked better than
87.54% of 1910 companies
in the Hardware industry
Industry Median: 14 vs TSE:4388: 3.95

EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.

As of today (2026-08-30), AI's stock price is 円370.00. AI's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 was 円22.450. Therefore, AI's PE Ratio (TTM) for today is 16.48.

The "classic" EV-to-EBITDA is much better in capturing debt and net cash than the PE Ratio (TTM).


AI  (TSE:4388) EV-to-EBITDA Explanation

EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.

AI's PE Ratio (TTM) for today is calculated as:

PE Ratio (TTM)=Share Price (Today)/Earnings per Share (Diluted) (TTM)
=370.00/22.450
=16.48

AI's share price for today is 円370.00.
AI's Earnings per Share (Diluted) 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22.450.

* 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.

Study has found that the companies with the lowest EV-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio (TTM).

Please read Which price ratio outperforms the enterprise multiple?


AI EV-to-EBITDA Related Terms


AI EV-to-EBITDA Historical Data

* Premium members only.

The historical data trend for AI's EV-to-EBITDA 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-EBITDA Chart

AI Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
EV-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 28.95 166.65 34.39 59.90 4.74

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-EBITDA 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 -40.72 29.99 16.63 4.74 0.00

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

For the Communication Equipment subindustry, AI's EV-to-EBITDA, along with its competitors' market caps and EV-to-EBITDA 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-EBITDA vs Hardware Industry

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

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


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

AI EV-to-EBITDA Calculation

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

EV-to-EBITDA=Enterprise Value (Today)/EBITDA (TTM)
=942.199/238.789
=3.95

AI's current Enterprise Value is 円942 Mil.
AI's EBITDA 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239 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-EBITDA →
What does a EV-to-EBITDA of 3.95 mean?
AI (TSE:4388) has a EV-to-EBITDA of 3.95 as of Aug. 30, 2026. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on AI. This is 89% below median its historical median of 35.33. According to the industry distribution chart, AI ranks #238 out of 1910 companies in the Hardware industry, placing it in the top 12.5%.
Is AI's EV-to-EBITDA too high?
AI's current EV-to-EBITDA of 3.95 is 89% below median its 10-year median of 35.33. The Hardware industry median EV-to-EBITDA is 14.00. AI's value of 3.95 is 71.8% below this industry median. Based on the distribution chart, AI ranks #238 out of 1910 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-EBITDA compare to CSCO and MSI?
According to the Hardware industry distribution chart, AI ranks #238 out of 1910 companies for EV-to-EBITDA. This places AI in the top 13% of its industry — outperforming the majority of peers. The industry median EV-to-EBITDA is 14.00. AI's value of 3.95 is 71.8% below this benchmark. While the company's 10-year median is 35.33 vs. the industry median of 14.00, 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-EBITDA for a Hardware company?
The median EV-to-EBITDA among Hardware companies is 14.00, based on 1,910 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AI's current EV-to-EBITDA of 3.95 is 71.8% 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-EBITDA mean?
A high EV-to-EBITDA can signal that a stock is expensive relative to its fundamentals. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on AI. For the Hardware industry, the median EV-to-EBITDA is 14.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AI's current EV-to-EBITDA is 3.95, which is 89% below median its own 10-year median of 35.33. 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1,113.90, compared to a current price of 円370.00 — trading 66.8% below its estimated fair value. The current EV-to-EBITDA is 3.95, which is 89% below median its 10-year median of 35.33 and 71.8% below the Hardware industry median of 14.00. 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-EBITDA calculated?
EV-to-EBITDA is calculated from a company's financial statements. For AI (TSE:4388), the current EV-to-EBITDA is 3.95 as of Aug. 30, 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1,113.90. GuruFocus considers AI to be Significantly Undervalued.

Key valuation signals for TSE:4388:

  • EV-to-EBITDA: 3.95 (89% below median its 10-year median of 35.33)
  • GF Value™: 円1,113.90 vs. price of 円370.00 (66.8% below fair value)
  • GF Score™: 73/100 with 5 warning signs
  • Industry Position: 71.8% below the Hardware median (#238 of 1910)

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

円370.00
Price
円1,113.90
GF Value