NECNECPY +1.05%65 EV-to-FCF is 14.11 as of Jul. 02, 2026, which is 33% below its 10-year median of 20.93. GuruFocus rates NECPY with a GF Score™ of 65/100 and a GF Value™ of $9.29 (Significantly Overvalued). Among 1,590 Software companies, NEC ranks better than 50.06% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, NEC's Enterprise Value is $32,290 Mil.
NEC's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was $2,289 Mil. Therefore, NEC's EV-to-FCF for today is 14.11.
The historical rank and industry rank for NEC's EV-to-FCF or its related term are showing as below:
NECPY'
s EV-to-FCF Range Over the Past 10 Years
Min: 8.65 Med: 20.93 Max: 441.71
Current: 14.11
During the past 13 years, the highest EV-to-FCF of NEC was 441.71. The lowest was 8.65. And the median was 20.93.
NECPY's EV-to-FCF is ranked better than 50.06% of 1590
companies
in the Software industry
Industry Median: 14.255
vs NECPY: 14.11
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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.
As of today (2026-07-02), NEC's stock price is $12.48.
NEC's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 was $0.656. Therefore, NEC's PE Ratio (TTM) for today is 19.02.
NEC (OTCPK:NECPY) EV-to-FCF Explanation
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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.
NEC's share price for today is $12.48.
NEC'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 $0.656.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
NEC EV-to-FCF Related Terms
NEC EV-to-FCF Historical Data
* Premium members only.
The historical data trend for NEC's EV-to-FCF 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.
For the Information Technology Services subindustry, NEC's EV-to-FCF, along with its competitors' market caps and EV-to-FCF 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.
NEC EV-to-FCF vs Software Industry
For the Software industry and Technology sector, NEC's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where NEC's EV-to-FCF falls into.
NEC's current Enterprise Value is $32,290 Mil.
NEC's Free Cash Flow 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 $2,289 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.
NEC (NECPY) has a EV-to-FCF of 14.11 as of Jul. 02, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on NEC and its competitors. This is 33% below median its historical median of 20.93. Over the past decade, NEC's EV-to-FCF has ranged from 8.65 to 441.71. According to the industry distribution chart, NEC ranks #794 out of 1590 companies in the Software industry, placing it in the top 49.9%.
Is NEC's EV-to-FCF too high?
NEC's current EV-to-FCF of 14.11 is 33% below median its 10-year median of 20.93. Over the past 10 years, this metric has ranged from a low of 8.65 to a high of 441.71. The Software industry median EV-to-FCF is 14.26. NEC's value of 14.11 is 1% below this industry median. Based on the distribution chart, NEC ranks #794 out of 1590 companies in the Software industry, which is above the industry midpoint. Overall, NEC has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does NEC's EV-to-FCF compare to IBM and ACN?
According to the Software industry distribution chart, NEC ranks #794 out of 1590 companies for EV-to-FCF. This puts NEC in the upper half of its industry. The industry median EV-to-FCF is 14.26. NEC's value of 14.11 is 1% below this benchmark. Historically, NEC's own EV-to-FCF has ranged from 8.65 to 441.71 over the past decade. While the company's 10-year median is 20.93 vs. the industry median of 14.26, NEC 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-FCF for a Software company?
The median EV-to-FCF among Software companies is 14.26, based on 1,590 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NEC's current EV-to-FCF of 14.11 is 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-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on NEC and its competitors. For the Software industry, the median EV-to-FCF is 14.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NEC's current EV-to-FCF is 14.11, which is 33% below median its own 10-year median of 20.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NEC stock overvalued right now?
Based on GuruFocus' analysis, NEC (NECPY) is currently considered Significantly Overvalued. The stock's GF Value™ is $9.29, compared to a current price of $12.48 — trading 34.3% above its estimated fair value. The current EV-to-FCF is 14.11, which is 33% below median its 10-year median of 20.93 and 1% below the Software industry median of 14.26. NEC's overall GF Score™ is 65/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For NEC (NECPY), the current EV-to-FCF is 14.11 as of Jul. 02, 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 NEC (NECPY) Overvalued in 2026?
Based on GuruFocus' analysis, NEC stock appears to be overvalued.
The current stock price of $12.48 is trading 34.3% above its estimated GF Value™ of $9.29.
GuruFocus considers NEC to be Significantly Overvalued.
Key valuation signals for NECPY:
EV-to-FCF: 14.11 (33% below median its 10-year median of 20.93)
GF Value™: $9.29 vs. price of $12.48 (34.3% above fair value)
Industry Position: 1% below the Software median (#794 of 1590)
No single metric tells the full story. See the NECPY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NEC Corp is engaged in IT services, networks, social infrastructure, and solutions. The company operates through three segments: IT Services, Social Infrastructure, and Others. The IT Services segment provides system integration, consulting, maintenance, outsourcing, cloud services, system equipment, and software services. The Social Infrastructure segment offers network infrastructure, including core networks, mobile base stations, optical transmission systems, and marine systems, along with telecom software, OSS/BSS solutions, aerospace and defense system integration, and maintenance. The Others segment covers the development, manufacturing, and sales of system equipment. It generates the majority of its revenue from the IT Services segment.
65GF Score
Get the complete analysis for NECPY
EV-to-FCF is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NECPY has been successfully added to your 
