Watami Co (TSE:7522) EV-to-FCF: 4.76 (As of Jul. 11, 2026) — 34% Below Median


TSE:7522 Watami Co Ltd TSE:7522
76 GF Score
Price 円932.00
GF Value 円1,080.77
Valuation Modestly Undervalued
! 2 Warning Signs
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What is Watami Co EV-to-FCF?

Watami Co TSE:7522 -0.43% 76 EV-to-FCF is 4.76 as of Jul. 11, 2026, which is 34% below its 10-year median of 7.20. GuruFocus rates TSE:7522 with a GF Score™ of 76/100 and a GF Value™ of 円1,080.77 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 276 Restaurants companies, Watami Co ranks better than 88.77% on this metric.

EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Watami Co's Enterprise Value is 円20,761 Mil. Watami Co's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was 円4,365 Mil. Therefore, Watami Co's EV-to-FCF for today is 4.76.

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

TSE:7522' s EV-to-FCF Range Over the Past 10 Years
Min: -111.52   Med: 7.2   Max: 81.76
Current: 4.9

During the past 13 years, the highest EV-to-FCF of Watami Co was 81.76. The lowest was -111.52. And the median was 7.20.

TSE:7522's EV-to-FCF is ranked better than
88.77% of 276 companies
in the Restaurants industry
Industry Median: 17.78 vs TSE:7522: 4.90

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 (2026-07-11), Watami Co's stock price is 円932.00. Watami Co's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 was 円90.480. Therefore, Watami Co's PE Ratio (TTM) for today is 10.30.


Watami Co  (TSE:7522) 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.

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

PE Ratio (TTM)=Share Price (Today)/Earnings per Share (Diluted) (TTM)
=932.00/90.480
=10.30

Watami Co's share price for today is 円932.00.
Watami Co'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 円90.480.

* 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.


Watami Co EV-to-FCF Related Terms


Watami Co EV-to-FCF Historical Data

* Premium members only.

The historical data trend for Watami 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.

Watami Co EV-to-FCF Chart

Watami Co Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
EV-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only -27.42 5.55 10.42 4.65 5.06

Watami Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EV-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.65 4.95 4.75 6.30 5.06

TSE:7522 vs MCD, SBUX, YUM: EV-to-FCF Comparison

For the Restaurants subindustry, Watami 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.


Watami Co EV-to-FCF vs Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Watami Co's EV-to-FCF distribution charts can be found below:

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


TSE:7522
76GF Score
Watami Co Ltd TSE:7522
EV-to-FCF is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Watami Co EV-to-FCF Calculation

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

EV-to-FCF=Enterprise Value (Today)/Free Cash Flow (TTM)
=20761.331/4365
=4.76

Watami Co's current Enterprise Value is 円20,761 Mil.
Watami Co'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 円4,365 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 4.76 mean?
Watami Co (TSE:7522) has a EV-to-FCF of 4.76 as of Jul. 11, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Watami Co and its competitors. This is 34% below median its historical median of 7.20. According to the industry distribution chart, Watami Co ranks #31 out of 276 companies in the Restaurants industry, placing it in the top 11.2%.
Is Watami Co's EV-to-FCF too high?
Watami Co's current EV-to-FCF of 4.76 is 34% below median its 10-year median of 7.20. The Restaurants industry median EV-to-FCF is 17.78. Watami Co's value of 4.76 is 73.2% below this industry median. Based on the distribution chart, Watami Co ranks #31 out of 276 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, Watami Co has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Watami Co's EV-to-FCF compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Watami Co ranks #31 out of 276 companies for EV-to-FCF. This places Watami Co in the top 11% of its industry — outperforming the majority of peers. The industry median EV-to-FCF is 17.78. Watami Co's value of 4.76 is 73.2% below this benchmark. While the company's 10-year median is 7.20 vs. the industry median of 17.78, Watami 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 a Restaurants company?
The median EV-to-FCF among Restaurants companies is 17.78, based on 276 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. Watami Co's current EV-to-FCF of 4.76 is 73.2% 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 Watami Co and its competitors. For the Restaurants industry, the median EV-to-FCF is 17.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Watami Co's current EV-to-FCF is 4.76, which is 34% below median its own 10-year median of 7.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Watami Co stock overvalued right now?
Based on GuruFocus' analysis, Watami Co (TSE:7522) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,080.77, compared to a current price of 円932.00 — trading 13.8% below its estimated fair value. The current EV-to-FCF is 4.76, which is 34% below median its 10-year median of 7.20 and 73.2% below the Restaurants industry median of 17.78. Watami Co's overall GF Score™ is 76/100 with 2 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 Watami Co (TSE:7522), the current EV-to-FCF is 4.76 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 Watami Co (TSE:7522) Overvalued in 2026?

Based on GuruFocus' analysis, Watami Co stock appears to be undervalued. The current stock price of 円932.00 is trading 13.8% below its estimated GF Value™ of 円1,080.77. GuruFocus considers Watami Co to be Modestly Undervalued.

Key valuation signals for TSE:7522:

  • EV-to-FCF: 4.76 (34% below median its 10-year median of 7.20)
  • GF Value™: 円1,080.77 vs. price of 円932.00 (13.8% below fair value)
  • GF Score™: 76/100 with 2 warning signs
  • Industry Position: 73.2% below the Restaurants median (#31 of 276)

No single metric tells the full story. See the TSE:7522 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Watami Co Business Description

Address 1-1-3 Haneda, Ota-ku, Tokyo, JPN, 144-0043
Watami Co Ltd is engaged in the management and operation of restaurants. It is also involved in the production and sale of agricultural products; and home visit nursing, in-home nursing care support, and institutional care businesses. The company conducts organic farming, animal husbandry and dairy farming from Hokkaido to Kyushu.
76GF Score

Get the complete analysis for TSE:7522

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

円932.00
Price
円1,080.77
GF Value