| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 978.60 | 1 |
| Intrinsic value (DCF) | 22231.28 | 2187 |
| Graham-Dodd Method | 401.71 | -59 |
| Graham Formula | 4664.33 | 380 |
CREAL Inc. (2998.T) is a Tokyo-based financial services company specializing in real estate asset management and investment platforms. Founded in 2011, CREAL operates multiple digital platforms catering to different investor segments: CREAL (a real estate fund online marketplace for retail investors), CREAL PB (an asset management service for individuals), and CREAL Pro (a platform for institutional and high-net-worth investors). The company also provides direct real estate investment and rental management services. Operating in Japan's growing fintech and proptech sectors, CREAL bridges traditional real estate investment with digital accessibility, serving a market where real estate remains a preferred asset class. With a market cap of ¥34.9 billion, the company plays a niche role in democratizing real estate investment through technology while facing competition from both traditional asset managers and emerging fintech platforms.
CREAL Inc. presents a high-risk, high-reward proposition with its beta of 1.755, reflecting sensitivity to market volatility. While revenue reached ¥21.0 billion in FY2024, net income was modest at ¥647 million, and operating cash flow was negative (-¥1.2 billion), raising liquidity concerns despite ¥7.9 billion in cash reserves. The company's growth depends on Japan's real estate market stability and adoption of digital investment platforms. A ¥30/share dividend indicates income potential, but high debt (¥5.9 billion) and negative cash flow warrant caution. Investors should weigh CREAL's fintech innovation against execution risks in a competitive sector.
CREAL's competitive advantage lies in its specialized digital platforms that segment the real estate investment market (retail, HNWI, institutional). Unlike traditional asset managers, CREAL's tech-driven approach lowers barriers to real estate investing, though this also exposes it to competition from both fintech disruptors and established financial institutions. Its ¥34.9 billion market cap is modest compared to industry giants, limiting scale advantages. The negative operating cash flow suggests heavy platform investment, which could strengthen its position long-term but strains short-term profitability. CREAL's beta of 1.755 indicates higher volatility than peers, likely due to its hybrid fintech/real estate profile. Success hinges on user acquisition for its platforms and Japan's real estate market performance, where demographic trends (aging population, urban concentration) create both opportunities and risks. Regulatory changes in fintech or real estate could disproportionately impact CREAL versus diversified competitors.