| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 617.38 | 52 |
| Intrinsic value (DCF) | 479.78 | 18 |
| Graham-Dodd Method | 321.93 | -21 |
| Graham Formula | 11.34 | -97 |
GREE, Inc. is a leading Japanese technology company specializing in online media, mobile gaming, and virtual entertainment. Headquartered in Tokyo, GREE operates in the Electronic Gaming & Multimedia sector, offering a diverse portfolio of mobile social games, Nintendo Switch titles, and Facebook Messenger-based games. The company has carved a niche in the virtual YouTuber (VTuber) industry, managing talent, producing content, and developing platforms for digital creators. Additionally, GREE runs popular online lifestyle magazines like MINE, LIMIA, ARINE, and aumo, catering to fashion, beauty, and home living audiences. With a strong foothold in Japan and expanding international presence, GREE also invests in internet-based technology services and provides digital advertising solutions. Founded in 2004, the company continues to innovate in interactive entertainment and digital media, leveraging its expertise in gaming and VTuber ecosystems.
GREE, Inc. presents a mixed investment profile with strengths in niche digital entertainment segments but faces challenges in revenue growth and market competition. The company maintains a solid cash position (JPY 49.8 billion) and modest debt (JPY 16.7 billion), supporting financial stability. Its beta of 0.039 suggests low volatility relative to the market, appealing to risk-averse investors. However, with a market cap of JPY 88.9 billion and net income of JPY 4.6 billion, profitability remains constrained. The dividend yield (JPY 16.5 per share) adds appeal, but reliance on Japan's saturated gaming market and VTuber segment—while innovative—may limit scalability. Investors should weigh its strong domestic position against intensifying competition in mobile gaming and digital content.
GREE, Inc. competes in Japan's crowded gaming and digital media landscape, where differentiation is critical. Its competitive advantage lies in its dual focus on mobile gaming and VTuber entertainment—a high-growth niche. The company’s first-mover experience in VTuber talent management (via its live entertainment business) provides a content pipeline and fan engagement edge. However, GREE’s gaming portfolio lacks global hits compared to rivals, relying heavily on domestic social games. Its online magazines (MINE, LIMIA) face competition from larger digital publishers. Financially, GREE’s low leverage and cash reserves offer flexibility, but its JPY 61.3 billion revenue is dwarfed by gaming giants like Nexon. The VTuber segment, while promising, competes with Hololive (Cover Corp) and Nijisanji (Anycolor), which dominate overseas markets. GREE’s challenge is scaling beyond Japan while defending its core gaming and media businesses against larger, better-funded rivals.