Housefreedom Co (FSE:8996) Predictability Rank


FSE:8996 Housefreedom Co Ltd FSE:8996
18 GF Score
Price 円860.00
GF Value 円734.44
! 4 Warning Signs
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What is Housefreedom Co Predictability Rank?

2.5 (5)

Warren Buffett said many times that the companies he likes are:

1. Simple businesses that he understands
2. that have predictable and proven earnings and
3. with economic moat
4. those can be bought at a reasonable price.

It is hard to quantify "simple businesses that he (Buffett) understands", so we will focus on the other three characteristics instead. In GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank, we will show that the businesses that have predictable and proven earnings are usually also simple businesses that an average person could understand.

GuruFocus conducted a back test study of Warren Buffett's strategy of "buying good companies at fair prices" for the years from 1998-2008.

Housefreedom Co Predictability Rank Related Terms

FSE:8996
18GF Score
Housefreedom Co Ltd FSE:8996
Predictability Rank is just one metric. See GF Score™, valuation, warning signs, and more.
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Housefreedom Co Predictability Rank Calculation

In our database there are 2403 stocks that have been traded from Jan. 2, 1998 to Aug. 31, 2008. We have the complete 10-year financial data and trading prices of these companies for this period. We rank the predictability of these companies based on the consistency of their revenue per share and EBITDA (earning before interest, tax, depreciation and amortization) per share over the past ten fiscal years, and study the correlation between the stock performances and the predictability of the business.

Our study may be subject to these biases and assumptions:

Dividend yields are not counted for investment returns
Effects of price changes due to spin-offs may not be fully adjusted
Study is subjected to survivorship bias due to de-listing, bankruptcy, LBO, M&A, etc.

The correlation between business predictability and investment returns of a company is showed below.

Correlation Between Business Predictability and Investment Returns

PredictablesNon-PredictableAll stocks
Total Number of stocks57018332403
Total Lost Money61830891
Total Lost More Than 50%18412430
Total Lost More Than 90%48690
Average Gain260.6%100.0%138.1%
Median Gain150.0%13.0%39.0%
Maximum Gain2852.0%11483.0%11483.0%
Maximum Loss-100.0%-100.0%-100.0%
Annualized Average Gain12.7%6.7%8.4%
Annualized Median Gain8.9%1.1%3.1%


















For the 570 predictable companies, we have seen strong correlation between the predictability of businesses and the stock performances over the past 10 years, regardless of the valuation of business at 1998. Accordingly, we have ranked the business predictability from 5-star to 1-star, as shown in this table.

Predictability Rank5-Star4.5-Star4-Star3.5-Star3-Star2.5-Star2-Star1-Star (non-predictable)Average among all
% Out of All 2403 Stocks 3.3% 2.9% 3.7% 3.3% 3.3% 3.7% 3.3% 76.3% 100%
% that are in Loss (10y) 3% 10% 8% 9% 11% 18% 16% 45% 37%
Average Gain (10y) 364.6% 330.9% 278.0% 235.1% 243.5% 227.8% 154.8% 100.0% 138.1%
Median Gain (10y) 238.5% 193.5% 171.0% 159.0% 132.5% 113.5% 87.0% 13.0% 39.0%
Maximum Gainer 2228.0% 2547.0% 2452.0% 2852.0% 2432.0% 1892.0% 1807.0% 11483.0% 11483.0%
Maximum Loser -82.0% -53.0% -67.0% -100.0% -83.0% -100.0% -78.0% -100.0% -100.0%
Annualized Average Gain 15.4% 14.6% 13.2% 12.0% 12.2% 11.7% 9.1% 6.7% 8.4%
Annualized Median Gain 12.1% 10.6% 9.8% 9.3% 8.2% 7.3% 6.0% 1.1% 3.1%
















For detailed information about each predictability rank, please go to GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank

Also read:

Part II: What worked in the market from 1998-2008? Part II: Role of Valuations
Part III: Intrinsic Value, Discounted Cash Flow and Margin of Safety

Is Housefreedom Co (FSE:8996) Overvalued in 2026?

Based on GuruFocus' analysis, Housefreedom Co stock appears to be overvalued. The current stock price of 円860.00 is trading 17.1% above its estimated GF Value™ of 円734.44.

Key valuation signals for FSE:8996:

  • Predictability Rank:
  • GF Value™: 円734.44 vs. price of 円860.00 (17.1% above fair value)
  • GF Score™: 18/100 with 4 warning signs

No single metric tells the full story. See the FSE:8996 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Housefreedom Co Business Description

Other Exchanges 8996:Japan
Address 2-13-10 Ueda, Osaka prefecture, Matsubara, JPN, 580-0016
Housefreedom Co Ltd engaged in the real estate business. The company is involved in the sale of newly built detached houses and construction contract works. Its real estate brokerage services provide advice on transactions such as sale, purchase, and replacement of the house in the position of wanting to sell and buying. It also engaged in the damage insurance agency business, real estate leasing business, and nursing care business. The reportable segments are the five business segments: Real estate brokerage business; , New house sales; Construction contracting; Non-life insurance agency; and Real Estate Rental Business.
18GF Score

Get the complete analysis for FSE:8996

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

円860.00
Price
円734.44
GF Value