| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1923.61 | -35 |
| Intrinsic value (DCF) | 10770.31 | 264 |
| Graham-Dodd Method | 180.26 | -94 |
| Graham Formula | 2193.16 | -26 |
Global Security Experts Inc. (4417.T) is a leading cybersecurity education and consulting firm based in Tokyo, Japan. Founded in 1984, the company specializes in security consulting, vulnerability diagnosis, and comprehensive cybersecurity solutions tailored for businesses in Japan. Operating in the Software - Infrastructure sector, Global Security Experts plays a critical role in safeguarding digital assets for enterprises amid rising cyber threats. The company’s expertise in cybersecurity training and risk assessment positions it as a key player in Japan’s growing cybersecurity market, which is driven by increasing regulatory requirements and digital transformation initiatives. With a market capitalization of approximately ¥46.7 billion, Global Security Experts leverages its deep industry knowledge and technical proficiency to deliver high-margin security services, making it a notable contender in Japan’s cybersecurity landscape.
Global Security Experts presents a compelling investment case due to its niche focus on cybersecurity education and consulting in Japan, a market with increasing demand for digital security solutions. The company reported ¥7 billion in revenue and ¥783 million in net income for FY 2024, with a diluted EPS of ¥103.4, reflecting stable profitability. However, investors should note the company’s high beta (1.501), indicating higher volatility relative to the market. While its dividend yield (¥41.71 per share) may appeal to income-focused investors, the firm’s moderate cash position (¥1.23 billion) and total debt (¥1.75 billion) suggest a need for prudent capital management. The cybersecurity sector’s growth potential supports long-term upside, but competition and execution risks remain key considerations.
Global Security Experts holds a competitive edge in Japan’s cybersecurity education and consulting market due to its long-standing reputation and localized expertise. Unlike global cybersecurity firms, the company benefits from deep regional insights and regulatory familiarity, allowing it to cater effectively to Japanese enterprises. Its focus on vulnerability diagnosis and security training differentiates it from broader IT service providers. However, the firm faces competition from both domestic IT consultancies and multinational cybersecurity giants that offer scalable, cloud-based solutions. While Global Security Experts’ specialization in education provides recurring revenue streams, its relatively smaller scale limits its ability to compete on large-scale enterprise contracts compared to global players. The company’s competitive advantage lies in its consultative approach and tailored solutions, but it must continuously innovate to maintain relevance amid rapid technological advancements in cybersecurity.