Trend Micro Inc
TSE:4704

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Trend Micro Inc
TSE:4704
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Price: 5 304 JPY -3.14% Market Closed
Market Cap: ¥723.6B

P/FCFE

16.6
Current
51%
Cheaper
vs 3-y average of 33.9

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
16.6
=
Market Cap
¥781.2B
/
Free Cash Flow to Equity
¥41.8B

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
16.6
=
Market Cap
¥781.2B
/
Free Cash Flow to Equity
¥41.8B

Valuation Scenarios

Trend Micro Inc is trading below its 3-year average

If P/FCFE returns to its 3-Year Average (33.9), the stock would be worth ¥10 839.45 (104% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+104%
Average Upside
63%
Scenario P/FCFE Value Implied Price Upside/Downside
Current Multiple 16.6 ¥5 304
0%
3-Year Average 33.9 ¥10 839.45
+104%
5-Year Average 26.7 ¥8 550.19
+61%
Industry Average 25 ¥7 980.95
+50%
Country Average 22.4 ¥7 148.17
+35%

Forward P/FCFE
Today’s price vs future free cash flow to equity

Not enough data available to calculate forward P/FCFE

Peer Comparison

All Multiples
P/FCFE
P/E
All Countries
Close
Market Cap P/FCFE P/E
JP
Trend Micro Inc
TSE:4704
693.1B JPY 16.6 20.1
US
Microsoft Corp
NASDAQ:MSFT
3T USD 43.9 24.5
US
Oracle Corp
NYSE:ORCL
464B USD 31 30.8
US
Palo Alto Networks Inc
NASDAQ:PANW
146.3B USD 42.3 99.9
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
112.9B USD 95 -709.3
US
ServiceNow Inc
NYSE:NOW
91.5B USD 20.3 53.4
US
VMware Inc
XETRA:BZF1
58B EUR 18.6 47.9
US
Fortinet Inc
NASDAQ:FTNT
62.6B USD 28.8 34.6
US
Xperi Holding Corp
LSE:0M2A
54.6B USD 869.5 491.7
CN
Knowledge Atlas Technology JSC Ltd
HKEX:2513
382.1B HKD -269.9 -70.8
CN
MiniMax Group Inc
HKEX:100
217.8B HKD 54.3 -14.8
P/E Multiple
Earnings Growth PEG
JP
Trend Micro Inc
TSE:4704
Average P/E: 100.4
20.1
13%
1.5
US
Microsoft Corp
NASDAQ:MSFT
24.5
18%
1.4
US
Oracle Corp
NYSE:ORCL
30.8
37%
0.8
US
Palo Alto Networks Inc
NASDAQ:PANW
99.9
50%
2
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
Negative Multiple: -709.3 N/A N/A
US
ServiceNow Inc
NYSE:NOW
53.4
54%
1
US
V
VMware Inc
XETRA:BZF1
47.9
39%
1.2
US
Fortinet Inc
NASDAQ:FTNT
34.6
15%
2.3
US
Xperi Holding Corp
LSE:0M2A
491.7
N/A N/A
CN
K
Knowledge Atlas Technology JSC Ltd
HKEX:2513
Negative Multiple: -70.8 N/A N/A
CN
MiniMax Group Inc
HKEX:100
Negative Multiple: -14.8 N/A N/A

Market Distribution

In line with most companies in Japan
Percentile
35th
Based on 3 849 companies
35th percentile
16.6
Low
0.1 — 14.9
Typical Range
14.9 — 35
High
35 —
Distribution Statistics
Japan
Min 0.1
30th Percentile 14.9
Median 22.4
70th Percentile 35
Max 736 044 589.7

Trend Micro Inc
Glance View

Market Cap
723.6B JPY
Industry
Technology

Trend Micro Inc. began its journey in 1988, founded by three visionaries — Steve Chang, Jenny Chang, and Eva Chen. They had a single-minded mission: to make the digital world safer as the internet expanded its reach to every corner of the globe. Initially venturing into antivirus software, Trend Micro quickly established itself as a leader in cybersecurity by anticipating the growing threats posed by malicious actors. Headquartered in Tokyo, Japan, the company carved its niche by offering security solutions that protected both consumer and enterprise environments from virtual perils. Its strategy revolved around not just defending against existing threats but predicting emerging ones using advanced machine learning and big data analytics. This proactive stance positioned Trend Micro as a trusted guardian in the digital age, with a presence felt across the continents. In an age where data is both an asset and a liability, Trend Micro extended its expertise beyond traditional antivirus solutions, delving into cloud security, network defense, and endpoint security. They built a comprehensive product suite that targeted small businesses, global enterprises, and everything in between. The company makes money by selling these security solutions through subscriptions and licensing agreements, offering tailored services that cater to the specific needs of different businesses. Additionally, Trend Micro provides managed security services, enabling enterprises to outsource their cybersecurity needs entirely. Through partnerships and collaborations with major tech players, Trend Micro ensures seamless integration and deployment across diverse platforms and ecosystems. This approach has helped the company maintain a steady revenue stream, bolstering its reputation as an innovator in the cybersecurity space while keeping the digital world a little safer each day.

Intrinsic Value
6 241.02 JPY
Undervaluation 15%
Intrinsic Value
Price ¥5 304
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