Japan’s 5 Most Overvalued Companies - No. 3: The Points King is Bleeding Billions, But the Stock Goes Up?

Disclaimer: The content below reflects my personal opinions for educational purposes only and is not investment advice. Do your own research and consult a licensed professional before acting on any information here.

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Despite the US government looking hell-bent on crashing the global economy, Japan’s stock market is still partying like it’s 1989.

Therefore, I welcome you to my countdown of the five most overvalued Japanese stocks, companies whose share prices are far higher than their numbers support.

To separate hype from reality I check:

• Forward and trailing P/E against the peer group

• A straight-up DCF sanity test (10-year forecast, 3 % terminal growth)

• Debt-to-equity and interest-coverage ratios

• How much of the price tag comes from buzzwords rather than cash flow

Today, we're at the third spot of this notorious list: It is one of my least favorite companies with one of the world’s most annoying CEO’s