| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 273.24 | -12 |
| Intrinsic value (DCF) | 4285.83 | 1287 |
| Graham-Dodd Method | 132.81 | -57 |
| Graham Formula | 498.83 | 61 |
Space Market, Inc. (4487.T) is a pioneering Japanese company operating an innovative online platform for space sharing, catering to the growing demand for flexible and on-demand venue rentals. Headquartered in Japan and founded in 2014, the company's SpaceMarket app connects users with underutilized spaces for various purposes, including events, business meetings, fitness activities, pop-up stores, and more. Serving as a digital marketplace, Space Market capitalizes on the sharing economy trend, optimizing idle real estate assets for short-term use. The company operates in the Real Estate Services sector, leveraging technology to disrupt traditional rental models. With a market cap of approximately ¥3.96 billion, Space Market has demonstrated revenue growth, reporting ¥1.97 billion in revenue for its latest fiscal year. The platform's versatility—supporting diverse use cases from parties to office spaces—positions it as a key player in Japan's evolving real estate tech landscape.
Space Market presents an intriguing investment opportunity as a niche player in Japan's sharing economy, with scalable technology and a unique value proposition in space utilization. The company has shown profitability, with net income of ¥181.6 million and positive operating cash flow of ¥381.5 million, indicating operational efficiency. However, investors should note its relatively small market cap and beta of 1.207, suggesting higher volatility compared to the broader market. The lack of dividend payouts may deter income-focused investors, but growth-oriented investors might appreciate its capital reinvestment strategy. Risks include competition from traditional rental services and potential economic sensitivity, as discretionary spending on event spaces could fluctuate. The company's strong cash position (¥911.3 million) against modest debt (¥231.7 million) provides financial stability for expansion.
Space Market's competitive advantage lies in its first-mover status in Japan's online space-sharing niche, offering a tech-driven solution that aggregates fragmented supply (underused venues) with diverse demand. The platform's broad categorization—from pop-up retail to fitness spaces—creates network effects, where more listings attract more users and vice versa. Unlike traditional real estate services requiring long-term leases, Space Market provides flexibility, appealing to Japan's growing gig economy and SME sector. However, the company faces competition from both digital platforms and conventional venue rental businesses. Its asset-light model reduces overhead but depends heavily on supplier participation and platform liquidity. The lack of international presence limits growth potential compared to global peers, though this also insulates it from foreign competition. Monetization through transaction fees provides scalable revenue, but the company must continuously invest in UX and marketing to maintain its lead in a market with low switching costs for users.