--- title: "Is It Time To Reassess Nomura Research Institute (TSE:4307) After Its Recent Share Price Rebound?" type: "News" locale: "en" url: "https://longbridge.com/en/news/288119027.md" description: "Nomura Research Institute (TSE:4307) shows mixed valuation signals. A DCF analysis suggests the stock is fairly valued at ~¥5,126 versus its current ¥5,022 price. However, a Price-to-Sales ratio of 3.54x indicates undervaluation compared to a fair ratio of 3.96x. Despite recent short-term price rebounds, the stock remains down year-to-date and over the last year, though it has delivered strong long-term returns." datetime: "2026-05-29T21:20:41.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/288119027.md) - [en](https://longbridge.com/en/news/288119027.md) - [zh-HK](https://longbridge.com/zh-HK/news/288119027.md) generator: "portal-rs" --- # Is It Time To Reassess Nomura Research Institute (TSE:4307) After Its Recent Share Price Rebound? - Wondering whether Nomura Research Institute at ¥5,022 is offering good value right now, or if the stock is already pricing in its strengths. - The share price has risen 6.9% over the past week and 16.4% over the past month, yet is still down 16.6% year to date and has fallen 8.5% over the last year, which can change how investors think about both risk and opportunity. - These moves sit against a longer context where the stock has returned 42.1% over three years and 56.1% over five years, which may attract investors who focus on multi year trends. That mix of shorter term weakness and longer term strength is often where valuation views start to diverge. - Right now, Nomura Research Institute scores a 3 out of 6 valuation check score. This article will unpack that score using different valuation methods, before circling back to a more complete way of thinking about what the stock could be worth. Find out why Nomura Research Institute's -8.5% return over the last year is lagging behind its peers. ### Approach 1: Nomura Research Institute Discounted Cash Flow (DCF) Analysis A Discounted Cash Flow model takes estimates of the cash a company could generate in future years and discounts those cash flows back to a single value in today's money. It is a way of asking what all those future ¥ are worth right now. For Nomura Research Institute, the latest twelve month Free Cash Flow is about ¥96.4b. Analysts and extrapolations point to projected Free Cash Flow of ¥182.4b by the year ending 2031, based on a 2 Stage Free Cash Flow to Equity model that uses analyst inputs for the earlier years and Simply Wall St extrapolations further out. When all those projected cash flows are discounted back and added together, the model arrives at an estimated intrinsic value of roughly ¥5,126 per share. Compared with the current share price of ¥5,022, the stock screens as about 2.0% undervalued on this DCF view, which is a very small gap. **Result: ABOUT RIGHT** Nomura Research Institute is fairly valued according to our Discounted Cash Flow (DCF), but this can change at a moment's notice. Track the value in your watchlist or portfolio and be alerted on when to act. 4307 Discounted Cash Flow as at May 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Nomura Research Institute. ### Approach 2: Nomura Research Institute Price vs Sales For profitable companies that already generate meaningful revenue, the Price to Sales, or P/S, ratio can be a useful cross check because it compares what you pay for each ¥ of sales to what the market typically pays for similar businesses. In general, higher growth expectations and lower perceived risk can support a higher P/S multiple. In contrast, slower expected growth or higher risk tend to align with a lower, more conservative multiple that investors might view as normal. Nomura Research Institute currently trades on a P/S of 3.54x. That sits well above the broader IT industry average of 0.94x but below the peer group average of 4.19x. To refine this, Simply Wall St uses a proprietary Fair Ratio of 3.96x, which estimates the P/S level that could be reasonable given factors such as earnings growth, profit margins, industry, market cap and company specific risks. This Fair Ratio can be more informative than a simple peer or industry comparison because it adjusts for the company’s own growth profile and risk characteristics rather than assuming all stocks should trade on the same multiple. Comparing the current 3.54x P/S to the 3.96x Fair Ratio suggests the stock screens as undervalued on this metric. **Result: UNDERVALUED** TSE:4307 P/S Ratio as at May 2026 P/S ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 13 top founder-led companies. ### Upgrade Your Decision Making: Choose your Nomura Research Institute Narrative Earlier it was mentioned that there is an even better way to understand valuation, so Narratives are a simple way for you to write the story behind your numbers by tying your view on Nomura Research Institute’s future revenue, earnings and margins to a forecast and then to a fair value that you can compare with the current share price. On Simply Wall St’s Community page, which is used by millions of investors, Narratives make this easy by letting you plug in assumptions, see the implied fair value, and then quickly spot whether your story suggests the stock is trading above or below what you think it is worth. This view then updates automatically as new earnings, news or guidance come through. For example, one investor might build a Narrative around the more optimistic analyst price target of ¥6,800, based on higher conviction in international expansion and margin improvement. Another might lean toward the ¥4,900 target, focusing more on risks like goodwill impairments and capital demands. Both versions sit side by side so you can decide which story you find more reasonable. Do you think there's more to the story for Nomura Research Institute? Head over to our Community to see what others are saying! TSE:4307 1-Year Stock Price Chart *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.* ### Valuation is complex, but we're here to simplify it. Discover if Nomura Research Institute might be undervalued or overvalued with our detailed analysis, featuring **fair value estimates, potential risks, dividends, insider trades, and its financial condition.** Access Free Analysis ### Related Stocks - [4307.JP](https://longbridge.com/en/quote/4307.JP.md) ## Related News & Research - [Dentsu Group (TSE:4324) Reshuffles South Asia Leadership, Is The Stock Above Fair Value?](https://longbridge.com/en/news/297558709.md) - [freee K.K (TSE:4478) Expands Into Education And Training, Is The Stock Fully Priced?](https://longbridge.com/en/news/297264838.md) - [Russell David Buys 485 Shares of Firan Technology Group (TSE:FTG) Stock](https://longbridge.com/en/news/297552785.md) - [Mitsui (TSE:8031) Faces A Valuation Test Following Its Low Carbon Ammonia Bet](https://longbridge.com/en/news/297543823.md) - [Tecsys (TSE:TCS) Director Sells 600 Shares of Stock](https://longbridge.com/en/news/297361744.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**