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EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Japan Business Systems's Enterprise Value is 円88,439 Mil.
Japan Business Systems's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was 円3,589 Mil. Therefore, Japan Business Systems's EV-to-FCF for today is 24.64.
The historical rank and industry rank for Japan Business Systems's EV-to-FCF or its related term are showing as below:
TSE:5036'
s EV-to-FCF Range Over the Past 10 Years
Min: -33.37 Med: -10.79 Max: 105.96
Current: 23.78
During the past 6 years, the highest EV-to-FCF of Japan Business Systems was 105.96. The lowest was -33.37. And the median was -10.79.
TSE:5036's EV-to-FCF is ranked worse than 67.83% of 1604
companies
in the Software industry
Industry Median: 14.8
vs TSE:5036: 23.78
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.
Japan Business Systems (TSE:5036) 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.
Japan Business Systems's PE Ratio (TTM) for today is calculated as:
Japan Business Systems's share price for today is 円1600.00.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Japan Business Systems's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 was 円143.880.
* 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.
* 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.
TSE:5036 vs MSFT, ORCL, PLTR: EV-to-FCF Comparison
For the Software - Infrastructure subindustry, Japan Business Systems'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.
Japan Business Systems EV-to-FCF vs Software Industry
For the Software industry and Technology sector, Japan Business Systems's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Japan Business Systems's EV-to-FCF falls into.
Japan Business Systems's current Enterprise Value is 円88,439 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Japan Business Systems's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was 円3,589 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.
Japan Business Systems (TSE:5036) has a EV-to-FCF of 24.64 as of Aug. 01, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Japan Business Systems and its competitors. According to the industry distribution chart, Japan Business Systems ranks #1088 out of 1604 companies in the Software industry, placing it in the top 67.8%.
Is Japan Business Systems' EV-to-FCF too high?
Japan Business Systems' current EV-to-FCF is 24.64. The Software industry median EV-to-FCF is 14.80. Japan Business Systems' value of 24.64 is 66.5% above this industry median. Based on the distribution chart, Japan Business Systems ranks #1088 out of 1604 companies in the Software industry, which is below the industry midpoint. Overall, Japan Business Systems has a GF Score™ of 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Japan Business Systems' EV-to-FCF compare to MSFT and ORCL?
According to the Software industry distribution chart, Japan Business Systems ranks #1088 out of 1604 companies for EV-to-FCF. This places Japan Business Systems in the lower half of its industry. The industry median EV-to-FCF is 14.80. Japan Business Systems' value of 24.64 is 66.5% above this benchmark. 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 14.80, based on 1,604 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. Japan Business Systems's current EV-to-FCF of 24.64 is 66.5% above 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 Japan Business Systems and its competitors. For the Software industry, the median EV-to-FCF is 14.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Business Systems's current EV-to-FCF is 24.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Business Systems stock overvalued right now?
Based on GuruFocus' analysis, Japan Business Systems (TSE:5036) is currently considered Modestly Undervalued. The stock's GF Value™ is 円2,018.53, compared to a current price of 円1,600.00 — trading 20.7% below its estimated fair value. The current EV-to-FCF is 24.64 and 66.5% above the Software industry median of 14.80. Japan Business Systems' overall GF Score™ is 77/100 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-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For Japan Business Systems (TSE:5036), the current EV-to-FCF is 24.64 as of Aug. 01, 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 Japan Business Systems (TSE:5036) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Business Systems stock appears to be undervalued.
The current stock price of 円1,600.00 is trading 20.7% below its estimated GF Value™ of 円2,018.53.
GuruFocus considers Japan Business Systems to be Modestly Undervalued.
Key valuation signals for TSE:5036:
EV-to-FCF: 24.64
GF Value™: 円2,018.53 vs. price of 円1,600.00 (20.7% below fair value)
Industry Position: 66.5% above the Software median (#1088 of 1604)
No single metric tells the full story. See the TSE:5036 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Business Systems Inc operates in the information technology sector. The company works with cloud companies, various hardware and software manufacturers, research institutes and universities, etc., to provide cloud services to its clients. It is a cloud services integrator that provides consulting and IT services that can maximize customer performance by utilizing cloud services centered on Microsoft. The various services offered by the company include digital transformation, cloud infrastructure solutions, SAP system solutions, Microsoft 365 and Power platform-related solutions, and others. Its reportable segments are; Cloud Integration, which derives key revenue, and Cloud Services. Geographically, the company operates in Japan.
77GF Score
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