Freee KK (TSE:4478) Moat Score: 5/10 (As of Jul. 15, 2026)

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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.

TSE:4478 Freee KK TSE:4478
62 GF Score
Price 円2,315.00
GF Value 円5,447.68
Valuation Possible Value Trap
! 3 Warning Signs
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What is Freee KK Moat Score?

Freee KK TSE:4478 -0.60% 62 Moat Score is 5 as of Jul. 15, 2026. GuruFocus rates TSE:4478 with a GF Score™ of 62/100 and a GF Value™ of 円5,447.68 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 2,838 Software companies, Freee KK ranks better than 94.79% on this metric.

Freee KK has the Moat Score of 5, which implies that the company might have Narrow Moat - Solid narrow moat.

Freee KK has Narrow Moat: Freee KK has a solid narrow moat due to its software solutions in the Japanese market, benefiting from customer switching costs and some brand recognition. However, it faces competition from larger software providers, limiting its moat strength.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Freee KK might have Narrow Moat - Solid narrow moat.

Freee KK  (TSE:4478) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Freee KK Moat Score Related Terms

TSE:4478 vs UBER, SHOP, CRM: Moat Score Comparison

For the Software - Application subindustry, Freee KK's Moat Score, along with its competitors' market caps and Moat Score 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.

Freee KK Moat Score vs Software Industry

For the Software industry and Technology sector, Freee KK's Moat Score distribution charts can be found below:

* The bar in red indicates where Freee KK's Moat Score falls into.


TSE:4478
62GF Score
Freee KK TSE:4478
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 5 mean?
Freee KK (TSE:4478) has a Moat Score of 5 as of Jul. 15, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Freee KK ranks #148 out of 2838 companies in the Software industry, placing it in the top 5.2%.
Is Freee KK's Moat Score too high?
Freee KK's current Moat Score is 5. Based on the distribution chart, Freee KK ranks #148 out of 2838 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Freee KK has a GF Score™ of 62/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Freee KK's Moat Score compare to UBER and SHOP?
According to the Software industry distribution chart, Freee KK ranks #148 out of 2838 companies for Moat Score. This places Freee KK in the top 5% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Software company?
A good Moat Score depends on the Software industry context. However, Moat Score 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 Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Freee KK's current Moat Score is 5. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Freee KK stock overvalued right now?
Based on GuruFocus' analysis, Freee KK (TSE:4478) is currently considered Possible Value Trap. The stock's GF Value™ is 円5,447.68, compared to a current price of 円2,315.00 — trading 57.5% below its estimated fair value. The current Moat Score is 5. Freee KK's overall GF Score™ is 62/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Freee KK (TSE:4478), the current Moat Score is 5 as of Jul. 15, 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 Freee KK (TSE:4478) Overvalued in 2026?

Based on GuruFocus' analysis, Freee KK stock appears to be undervalued. The current stock price of 円2,315.00 is trading 57.5% below its estimated GF Value™ of 円5,447.68. GuruFocus considers Freee KK to be Possible Value Trap.

Key valuation signals for TSE:4478:

  • Moat Score: 5
  • GF Value™: 円5,447.68 vs. price of 円2,315.00 (57.5% below fair value)
  • GF Score™: 62/100 with 3 warning signs

No single metric tells the full story. See the TSE:4478 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Freee KK Business Description

Other Exchanges FREKF:USA
Address 2-8-1 Nishi-Gotanda, Shinagawa-ku, Gotanda First Building 9th Floor, Tokyo, JPN, 141-0031
Freee KK is a developer of cloud-based software. Its software products include Cloud Accounting software, Cloud HR Labor software, Cloud ERP for Midsize companies, among others.
62GF Score

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

円2,315.00
Price
円5,447.68
GF Value