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.
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.
Nihon FalcomTSE:3723 -0.66%69 3-Year ROIIC % is 33.29 as of Sep. 2025, which is 216% above its 10-year median of 10.52. GuruFocus rates TSE:3723 with a GF Score™ of 69/100 and a GF Value™ of 円1,730.49 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 529 Interactive Media companies, Nihon Falcom ranks better than 72.59% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Nihon Falcom's 3-Year ROIIC % for the quarter that ended in Sep. 2025 was 33.29%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Nihon Falcom's 3-Year ROIIC % or its related term are showing as below:
TSE:3723's 3-Year ROIIC % is ranked better than 72.59% of 529
companies
in the Interactive Media industry
Industry Median: 3.45
vs TSE:3723: 33.29
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Nihon Falcom 3-Year ROIIC % Related Terms
Nihon Falcom 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Nihon Falcom's 3-Year ROIIC % 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.
TSE:3723 vs NTES, EA, TTWO: 3-Year ROIIC % Comparison
For the Electronic Gaming & Multimedia subindustry, Nihon Falcom's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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.
Nihon Falcom 3-Year ROIIC % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Nihon Falcom's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Nihon Falcom's 3-Year ROIIC % falls into.
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Nihon Falcom (TSE:3723) has a 3-Year ROIIC % of 33.29 as of Sep. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Nihon Falcom and its competitors. This is 216% above median its historical median of 10.52. According to the industry distribution chart, Nihon Falcom ranks #145 out of 529 companies in the Interactive Media industry, placing it in the top 27.4%.
Is Nihon Falcom's 3-Year ROIIC % too high?
Nihon Falcom's current 3-Year ROIIC % of 33.29 is 216% above median its 10-year median of 10.52. The Interactive Media industry median 3-Year ROIIC % is 3.45. Nihon Falcom's value of 33.29 is 864.9% above this industry median. Based on the distribution chart, Nihon Falcom ranks #145 out of 529 companies in the Interactive Media industry, which is above the industry midpoint. Overall, Nihon Falcom has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nihon Falcom's 3-Year ROIIC % compare to NTES and EA?
According to the Interactive Media industry distribution chart, Nihon Falcom ranks #145 out of 529 companies for 3-Year ROIIC %. This puts Nihon Falcom in the upper half of its industry. The industry median 3-Year ROIIC % is 3.45. Nihon Falcom's value of 33.29 is 864.9% above this benchmark. While the company's 10-year median is 10.52 vs. the industry median of 3.45, Nihon Falcom has consistently been above 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 3-Year ROIIC % for an Interactive Media company?
The median 3-Year ROIIC % among Interactive Media companies is 3.45, based on 529 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Nihon Falcom's current 3-Year ROIIC % of 33.29 is 864.9% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Nihon Falcom and its competitors. For the Interactive Media industry, the median 3-Year ROIIC % is 3.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nihon Falcom's current 3-Year ROIIC % is 33.29, which is 216% above median its own 10-year median of 10.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nihon Falcom stock overvalued right now?
Based on GuruFocus' analysis, Nihon Falcom (TSE:3723) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,730.49, compared to a current price of 円2,695.00 — trading 55.7% above its estimated fair value. The current 3-Year ROIIC % is 33.29, which is 216% above median its 10-year median of 10.52 and 864.9% above the Interactive Media industry median of 3.45. Nihon Falcom's overall GF Score™ is 69/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Nihon Falcom (TSE:3723), the current 3-Year ROIIC % is 33.29 as of Sep. 2025. 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 Nihon Falcom (TSE:3723) Overvalued in 2026?
Based on GuruFocus' analysis, Nihon Falcom stock appears to be overvalued.
The current stock price of 円2,695.00 is trading 55.7% above its estimated GF Value™ of 円1,730.49.
GuruFocus considers Nihon Falcom to be Significantly Overvalued.
Key valuation signals for TSE:3723:
3-Year ROIIC %: 33.29 (216% above median its 10-year median of 10.52)
GF Value™: 円1,730.49 vs. price of 円2,695.00 (55.7% above fair value)
Industry Position: 864.9% above the Interactive Media median (#145 of 529)
No single metric tells the full story. See the TSE:3723 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nihon Falcom Corp is a Japan-based company engages in the development and sale of game software. It produces music titles/video titles; plans game software; sells game software and related products; and provides various licenses. It offers role-playing game software and Japanese version of overseas game software as well as home-use game software, among others.
69GF Score
Get the complete analysis for TSE:3723
3-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSE:3723 has been successfully added to your 
