Nippon Souken Co (TSE:5840) EV-to-FCF: 6.87 (As of Aug. 29, 2026) — 62% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
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:5840 Nippon Souken Co Ltd TSE:5840
52 GF Score
Price 円505.00
GF Value 円607.53
Valuation Modestly Undervalued
View Full Analysis

What is Nippon Souken Co EV-to-FCF?

Nippon Souken Co TSE:5840 52 EV-to-FCF is 6.87 as of Aug. 29, 2026, which is 62% below its 10-year median of 18.28. GuruFocus rates TSE:5840 with a GF Score™ of 52/100 and a GF Value™ of 円607.53 (Modestly Undervalued). Among 396 Insurance companies, Nippon Souken Co ranks better than 63.13% on this metric.

EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Nippon Souken Co's Enterprise Value is 円607.4 Mil. Nippon Souken Co's Free Cash Flow for the trailing twelve months (TTM) ended in May. 2026 was 円88.4 Mil. Therefore, Nippon Souken Co's EV-to-FCF for today is 6.87.

The historical rank and industry rank for Nippon Souken Co's EV-to-FCF or its related term are showing as below:

TSE:5840' s EV-to-FCF Range Over the Past 10 Years
Min: 6.87   Med: 18.28   Max: 334.63
Current: 6.87

During the past 5 years, the highest EV-to-FCF of Nippon Souken Co was 334.63. The lowest was 6.87. And the median was 18.28.

TSE:5840's EV-to-FCF is ranked better than
63.13% of 396 companies
in the Insurance industry
Industry Median: 9.545 vs TSE:5840: 6.87

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 (2026-08-29), Nippon Souken Co's stock price is 円505.00. Nippon Souken Co's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in May. 2026 was 円32.350. Therefore, Nippon Souken Co's PE Ratio (TTM) for today is 15.61.


Nippon Souken Co  (TSE:5840) 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.

Nippon Souken Co's PE Ratio (TTM) for today is calculated as:

PE Ratio (TTM)=Share Price (Today)/Earnings per Share (Diluted) (TTM)
=505.00/32.350
=15.61

Nippon Souken Co's share price for today is 円505.00.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Nippon Souken Co's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in May. 2026 was 円32.350.

* 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.


Nippon Souken Co EV-to-FCF Related Terms


Nippon Souken Co EV-to-FCF Historical Data

* Premium members only.

The historical data trend for Nippon Souken Co'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.

Nippon Souken Co EV-to-FCF Chart

Nippon Souken Co Annual Data
Trend Nov21 Nov22 Nov23 Nov24 Nov25
EV-to-FCF
0.00 0.00 334.63 14.91 18.28

Nippon Souken Co Semi-Annual Data
Nov21 Nov22 May23 Nov23 May24 Nov24 May25 Nov25 May26
EV-to-FCF Get a 7-Day Free Trial Premium Member Only 0.00 14.91 0.00 18.28 0.00

TSE:5840 vs MRSH, AON, AJG: EV-to-FCF Comparison

For the Insurance Brokers subindustry, Nippon Souken 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.


Nippon Souken Co EV-to-FCF vs Insurance Industry

For the Insurance industry and Financial Services sector, Nippon Souken Co's EV-to-FCF distribution charts can be found below:

* The bar in red indicates where Nippon Souken Co's EV-to-FCF falls into.


TSE:5840
52GF Score
Nippon Souken Co Ltd TSE:5840
EV-to-FCF is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Nippon Souken Co EV-to-FCF Calculation

Nippon Souken Co's EV-to-FCF for today is calculated as:

EV-to-FCF=Enterprise Value (Today)/Free Cash Flow (TTM)
=607.403/88.375
=6.87

Nippon Souken Co's current Enterprise Value is 円607.4 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Nippon Souken Co's Free Cash Flow for the trailing twelve months (TTM) ended in May. 2026 was 円88.4 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-FCF →
What does a EV-to-FCF of 6.87 mean?
Nippon Souken Co (TSE:5840) has a EV-to-FCF of 6.87 as of Aug. 29, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Nippon Souken Co and its competitors. This is 62% below median its historical median of 18.28. Over the past decade, Nippon Souken Co's EV-to-FCF has ranged from 6.87 to 334.63. According to the industry distribution chart, Nippon Souken Co ranks #146 out of 396 companies in the Insurance industry, placing it in the top 36.9%.
Is Nippon Souken Co's EV-to-FCF too high?
Nippon Souken Co's current EV-to-FCF of 6.87 is 62% below median its 10-year median of 18.28. Over the past 10 years, this metric has ranged from a low of 6.87 to a high of 334.63. The Insurance industry median EV-to-FCF is 9.55. Nippon Souken Co's value of 6.87 is 28% below this industry median. Based on the distribution chart, Nippon Souken Co ranks #146 out of 396 companies in the Insurance industry, which is above the industry midpoint. Overall, Nippon Souken Co has a GF Score™ of 52/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Souken Co's EV-to-FCF compare to MRSH and AON?
According to the Insurance industry distribution chart, Nippon Souken Co ranks #146 out of 396 companies for EV-to-FCF. This puts Nippon Souken Co in the upper half of its industry. The industry median EV-to-FCF is 9.55. Nippon Souken Co's value of 6.87 is 28% below this benchmark. Historically, Nippon Souken Co's own EV-to-FCF has ranged from 6.87 to 334.63 over the past decade. While the company's 10-year median is 18.28 vs. the industry median of 9.55, Nippon Souken Co 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 an Insurance company?
The median EV-to-FCF among Insurance companies is 9.55, based on 396 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. Nippon Souken Co's current EV-to-FCF of 6.87 is 28% 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 Nippon Souken Co and its competitors. For the Insurance industry, the median EV-to-FCF is 9.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Souken Co's current EV-to-FCF is 6.87, which is 62% below median its own 10-year median of 18.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Souken Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Souken Co (TSE:5840) is currently considered Modestly Undervalued. The stock's GF Value™ is 円607.53, compared to a current price of 円505.00 — trading 16.9% below its estimated fair value. The current EV-to-FCF is 6.87, which is 62% below median its 10-year median of 18.28 and 28% below the Insurance industry median of 9.55. Nippon Souken Co's overall GF Score™ is 52/100. 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 Nippon Souken Co (TSE:5840), the current EV-to-FCF is 6.87 as of Aug. 29, 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 Nippon Souken Co (TSE:5840) Overvalued in 2026?

Based on GuruFocus' analysis, Nippon Souken Co stock appears to be undervalued. The current stock price of 円505.00 is trading 16.9% below its estimated GF Value™ of 円607.53. GuruFocus considers Nippon Souken Co to be Modestly Undervalued.

Key valuation signals for TSE:5840:

  • EV-to-FCF: 6.87 (62% below median its 10-year median of 18.28)
  • GF Value™: 円607.53 vs. price of 円505.00 (16.9% below fair value)
  • GF Score™: 52/100
  • Industry Position: 28% below the Insurance median (#146 of 396)

No single metric tells the full story. See the TSE:5840 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Nippon Souken Co Business Description

Address 2-1 Sunport, Takamatsu Symbol Tower 9th floor, Kagawa Prefecture, Takamatsu, JPN, 760-0019
Nippon Souken Co Ltd is an insurance broker authorized by the Financial Services Agency to perform its functions in risk and insurance sector. The company provides a one-stop solution to the problems faced by insurance representatives.
52GF Score

Get the complete analysis for TSE:5840

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

円505.00
Price
円607.53
GF Value