GMO Internet Group (TSE:4784) Valuation Check After GPU Cloud Deal And Thailand Exit Decision

Why GMO internet (TSE:4784) is back on investors’ radar GMO internet (TSE:4784) has put two major decisions on the table: a ¥3.2 billion GPU cloud partnership with Turing Inc., and a planned exit from its digital asset business in Thailand. See our latest analysis for GMO internet. Despite the recent board decisions, momentum has been weak, with the share price at ¥714.0 and a year to date share price return of a 23.88% decline, set against a 70.93% three year total shareholder return that still reflects a strong longer term outcome. If this GPU cloud pivot has caught your attention and you want to see what else is out there in related areas, now may be a good time to sift through 35 AI infrastructure stocks With the share price under pressure this year but an intrinsic discount of about 94% and a strong three year total return, you have to ask: is GMO internet undervalued, or is the market already pricing in future growth? Price-to-Earnings of 35.2x: Is it justified? On Simply Wall St's numbers, GMO internet's shares at ¥714 trade on a P/E of 35.2x, which screens as expensive next to both peers and the broader JP Media industry. The P/E ratio compares the current share price to the company’s earnings per share. A higher multiple usually reflects higher expectations for future profitability. For an internet infrastructure and advertising group that has only recently become profitable but reports high quality earnings and a 39.4% Return on Equity, a richer P/E can indicate that investors are willing to pay more for that earnings profile. However, GMO internet’s 35.2x P/E sits well above the peer average of 23.9x and more than double the JP Media industry average of 15.7x. This is a strong signal that the market is pricing in better earnings power than the typical media name. There is also insufficient data to calculate a P/E fair ratio for GMO internet, so there is no statistical anchor suggesting where that multiple might settle over time. See what the numbers say about this price — find out in our valuation breakdown. Result: Price-to-Earnings of 35.2x (OVERVALUED) However, at a 35.2x P/E with a 23.88% year to date share price decline, any setback in the GPU cloud partnership or Thai exit could quickly challenge this valuation. Find out about the key risks to this GMO internet narrative. Another way to look at value While the 35.2x P/E makes GMO internet look expensive against peers, the SWS DCF model points in the opposite direction, with an estimated fair value of ¥12,779.3 versus the current ¥714 share price. That gap suggests a very different story. Which signal should you pay more attention to? Look into how the SWS DCF model arrives at its fair value. 4784 Discounted Cash Flow as at Mar 2026Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out GMO internet for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 19 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. Next Steps With sentiment clearly mixed, one of the quickest ways to cut through the noise is to review the full set of company data and recent decisions yourself. To see how the balance of concerns and potential upside compares in one place, take a look at the 2 key rewards and 2 important warning signs. Looking for more investment ideas? If GMO internet has you rethinking your portfolio, now is the time to widen your search and line up a few more high quality ideas on your radar. Target rock solid balance sheets and steady fundamentals by scanning the solid balance sheet and fundamentals stocks screener (36 results). Spot potential value opportunities before the crowd by checking the 19 high quality undervalued stocks. Hunt for under the radar prospects with strong foundations using the screener containing 58 high quality undiscovered gems. 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.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for Free