EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Encourage Technologies Co's Enterprise Value is 円-55 Mil.
Encourage Technologies Co's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was 円516 Mil. Therefore, Encourage Technologies Co's EV-to-FCF for today is -0.11.
The historical rank and industry rank for Encourage Technologies Co's EV-to-FCF or its related term are showing as below:
TSE:3682'
s EV-to-FCF Range Over the Past 10 Years
Min: -33.52 Med: 2.58 Max: 24.76
Current: -0.16
During the past 13 years, the highest EV-to-FCF of Encourage Technologies Co was 24.76. The lowest was -33.52. And the median was 2.58.
TSE:3682's EV-to-FCF is ranked better than 97.36% of 1592
companies
in the Software industry
Industry Median: 14.7
vs TSE:3682: -0.16
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.
Encourage Technologies Co (TSE:3682) 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.
Encourage Technologies Co's PE Ratio (TTM) for today is calculated as:
Encourage Technologies Co's share price for today is 円600.00.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Encourage Technologies Co's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 was 円31.940.
* 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.
Encourage Technologies Co EV-to-FCF Related Terms
Encourage Technologies Co EV-to-FCF 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, Encourage Technologies Co'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.
Encourage Technologies Co EV-to-FCF vs Software Industry
For the Software industry and Technology sector, Encourage Technologies Co's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Encourage Technologies Co's EV-to-FCF falls into.
Encourage Technologies Co's current Enterprise Value is 円-55 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Encourage Technologies Co's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was 円516 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.
Encourage Technologies Co (TSE:3682) has a EV-to-FCF of -0.11 as of Jul. 11, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Encourage Technologies Co and its competitors. According to the industry distribution chart, Encourage Technologies Co ranks #42 out of 1592 companies in the Software industry, placing it in the top 2.6%.
Is Encourage Technologies Co's EV-to-FCF too high?
Encourage Technologies Co's current EV-to-FCF is -0.11. Based on the distribution chart, Encourage Technologies Co ranks #42 out of 1592 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Encourage Technologies Co has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Encourage Technologies Co's EV-to-FCF compare to IBM and ACN?
According to the Software industry distribution chart, Encourage Technologies Co ranks #42 out of 1592 companies for EV-to-FCF. This places Encourage Technologies Co in the top 3% of its industry — outperforming the majority of peers. The industry median EV-to-FCF is 14.70. 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 14.70, based on 1,592 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. 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 Encourage Technologies Co and its competitors. For the Software industry, the median EV-to-FCF is 14.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Encourage Technologies Co's current EV-to-FCF is -0.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Encourage Technologies Co stock overvalued right now?
Based on GuruFocus' analysis, Encourage Technologies Co (TSE:3682) is currently considered Fairly Valued. The stock's GF Value™ is 円640.96, compared to a current price of 円600.00 — trading 6.4% below its estimated fair value. The current EV-to-FCF is -0.11. Encourage Technologies Co's overall GF Score™ is 75/100 with 4 warning signs to review. 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 Encourage Technologies Co (TSE:3682), the current EV-to-FCF is -0.11 as of Jul. 11, 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 Encourage Technologies Co (TSE:3682) Overvalued in 2026?
Based on GuruFocus' analysis, Encourage Technologies Co stock appears to be undervalued.
The current stock price of 円600.00 is trading 6.4% below its estimated GF Value™ of 円640.96.
GuruFocus considers Encourage Technologies Co to be Fairly Valued.
Key valuation signals for TSE:3682:
EV-to-FCF: -0.11
GF Value™: 円640.96 vs. price of 円600.00 (6.4% below fair value)
No single metric tells the full story. See the TSE:3682 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Encourage Technologies Co Ltd develops software that monitors and audits user activity in IT systems. The company also provides maintenance support after the installation of the software as well consulting services.
75GF Score
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