DeNA (TSE:2432) Could Be 4% Undervalued Following First Quarter Earnings
DeNA (TSE:2432) is in focus after its first quarter earnings on 5 August 2026, with sales of ¥37,166 million and net income of ¥33,438 million, compared with net income of ¥11,203 million a year earlier.
See our latest analysis for DeNA.
The earnings announcement and recent board meetings appear to have supported a 1-month share price return of 5.01% for DeNA, even though the 90-day share price return is down 6.76%. Over a longer period, the 3-year total shareholder return of 84.43% contrasts with the more modest 1-year total shareholder return of 13.96%. This difference suggests that momentum may have cooled from earlier levels.
If strong recent earnings have you looking at what else could be on your radar, it may be a good time to broaden your search with the 11 top founder-led companies
DeNA shares have risen over the past month after the earnings and governance news, yet the longer term record is much stronger than the recent 90 day move. Is it better to act now or wait for a cheaper entry before judging valuation?
Most Popular Narrative: 4.3% Undervalued
The most followed narrative currently puts DeNA's fair value at ¥2,650, slightly above the last close of ¥2,536, which suggests modest upside in the current pricing.
Multi-layered monetization in the Sports business, including record-breaking attendance, merchandise, sponsorship, and expanded structural strength, suggests a growing and diversified revenue base with lower sensitivity to shocks in any single income stream, leading to more stable earnings.
Want to see what anchors that ¥2,650 fair value for DeNA? The narrative leans heavily on future earnings power, margin resilience, and the pricing multiple investors might eventually accept.
Result: Fair Value of ¥2,650 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, the DeNA narrative still depends heavily on a few flagship gaming titles and on a live streaming business that is facing year on year revenue pressure.
Find out about the key risks to this DeNA narrative.
Another View on DeNA’s Valuation
The narrative fair value for DeNA points to a modest 4.3% discount at around ¥2,650. However, our DCF model paints a very different picture, with a future cash flow value of ¥1,376.7 per share. On that basis, the current price of ¥2,536 screens as overvalued. Which set of assumptions feels more realistic to you?
Before leaning on either conclusion, it is worth seeing how the cash flow inputs and discount rate shape that gap in value through the Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out DeNA for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 24 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Next Steps
Mixed signals around DeNA's value and narrative can be confusing. Consider quickly reviewing the evidence and weighing both risks and rewards through the 3 key rewards and 2 important warning signs
Looking for more investment ideas beyond DeNA?
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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