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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.
AITSE:4388 +0.54%77 EV-to-FCF is 17.95 as of Jul. 16, 2026, which is 49% below its 10-year median of 35.38. GuruFocus rates TSE:4388 with a GF Score™ of 77/100 and a GF Value™ of 円1,088.04 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 1,330 Hardware companies, AI ranks better than 57.59% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, AI's Enterprise Value is 円897 Mil.
AI's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was 円50 Mil. Therefore, AI's EV-to-FCF for today is 17.95.
The historical rank and industry rank for AI's EV-to-FCF or its related term are showing as below:
TSE:4388'
s EV-to-FCF Range Over the Past 10 Years
Min: 12.44 Med: 35.38 Max: 465.16
Current: 17.95
During the past 11 years, the highest EV-to-FCF of AI was 465.16. The lowest was 12.44. And the median was 35.38.
TSE:4388's EV-to-FCF is ranked better than 57.59% of 1330
companies
in the Hardware industry
Industry Median: 22.835
vs TSE:4388: 17.95
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 (2026-07-16), AI's stock price is 円374.00.
AI's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 was 円17.770. Therefore, AI's PE Ratio (TTM) for today is 21.05.
AI (TSE:4388) 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.
AI's share price for today is 円374.00.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. AI's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 was 円17.770.
* 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.
AI EV-to-FCF Related Terms
AI EV-to-FCF Historical Data
* Premium members only.
The historical data trend for AI'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 Communication Equipment subindustry, AI'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.
AI EV-to-FCF vs Hardware Industry
For the Hardware industry and Technology sector, AI's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where AI's EV-to-FCF falls into.
AI's current Enterprise Value is 円897 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. AI's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was 円50 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 (TSE:4388) has a EV-to-FCF of 17.95 as of Jul. 16, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on AI and its competitors. This is 49% below median its historical median of 35.38. Over the past decade, AI's EV-to-FCF has ranged from 12.44 to 465.16. According to the industry distribution chart, AI ranks #564 out of 1330 companies in the Hardware industry, placing it in the top 42.4%.
Is AI's EV-to-FCF too high?
AI's current EV-to-FCF of 17.95 is 49% below median its 10-year median of 35.38. Over the past 10 years, this metric has ranged from a low of 12.44 to a high of 465.16. The Hardware industry median EV-to-FCF is 22.84. AI's value of 17.95 is 21.4% below this industry median. Based on the distribution chart, AI ranks #564 out of 1330 companies in the Hardware industry, which is above the industry midpoint. Overall, AI has a GF Score™ of 77/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does AI's EV-to-FCF compare to CSCO and CIEN?
According to the Hardware industry distribution chart, AI ranks #564 out of 1330 companies for EV-to-FCF. This puts AI in the upper half of its industry. The industry median EV-to-FCF is 22.84. AI's value of 17.95 is 21.4% below this benchmark. Historically, AI's own EV-to-FCF has ranged from 12.44 to 465.16 over the past decade. While the company's 10-year median is 35.38 vs. the industry median of 22.84, 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-FCF for a Hardware company?
The median EV-to-FCF among Hardware companies is 22.84, based on 1,330 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. AI's current EV-to-FCF of 17.95 is 21.4% 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 AI and its competitors. For the Hardware industry, the median EV-to-FCF is 22.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AI's current EV-to-FCF is 17.95, which is 49% below median its own 10-year median of 35.38. 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1,088.04, compared to a current price of 円374.00 — trading 65.6% below its estimated fair value. The current EV-to-FCF is 17.95, which is 49% below median its 10-year median of 35.38 and 21.4% below the Hardware industry median of 22.84. AI's overall GF Score™ is 77/100 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-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For AI (TSE:4388), the current EV-to-FCF is 17.95 as of Jul. 16, 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374.00 is trading 65.6% below its estimated GF Value™ of 円1,088.04.
GuruFocus considers AI to be Significantly Undervalued.
Key valuation signals for TSE:4388:
EV-to-FCF: 17.95 (49% below median its 10-year median of 35.38)
GF Value™: 円1,088.04 vs. price of 円374.00 (65.6% below fair value)
Industry Position: 21.4% below the Hardware median (#564 of 1330)
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 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.
77GF Score
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