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Playstation Estimated Market Cap?

Oct 27, 2017
189
#1
If PlayStation was to become fully independent of Sony, what would be the estimated market cap?

Surely, the success of SIE makes this an extremely valuable and profitable division.


FY 2018 Q2 saw PlayStation make $4.9 billion in sales and $800 million in profits.

What is everybody's analysis on the potential market cap?
 
Oct 25, 2017
2,489
#9
ITT: People make up numbers despite having the data points to actually answer it properly.

Nintendo looks to have a FEM of approx 20. So you take Sony's estimated FY 2019 PlayStation profit and multiply it by that.

Of course a FEM of 20 is pretty high, and normally indicates a company expecting high profit growth but it's a start.
 
OP
OP
Sillegamer
Oct 27, 2017
189
#10
Since when has ResetEra turned into a place of hostility.

I enjoy reading everybody's opinions on the business aspects of the console business - particularly Sony.

There is no agenda and it's beginning to look like an N4G comments section with the drive by snark.
 
Oct 28, 2017
1,153
#12
Since when has ResetEra turned into a place of hostility.

I enjoy reading everybody's opinions on the business aspects of the console business - particularly Sony.

There is no agenda and it's beginning to look like an N4G comments section with the drive by snark.
Most of us are not analysts and if you're interested in this kind of information you can look up the latest Sonys earnings call, even tough it's not nearly enough because many things are considered while calculating market cap.
 
Oct 27, 2017
9,732
#13
Since when has ResetEra turned into a place of hostility.

I enjoy reading everybody's opinions on the business aspects of the console business - particularly Sony.

There is no agenda and it's beginning to look like an N4G comments section with the drive by snark.
Joke back. There's no bite in it my friend.
 
Oct 25, 2017
2,489
#14
Since when has ResetEra turned into a place of hostility.

I enjoy reading everybody's opinions on the business aspects of the console business - particularly Sony.

There is no agenda and it's beginning to look like an N4G comments section with the drive by snark.
I'm not being hostile but please, do some research into your threads and it'll make it much better for everyone.

As I said, valuations are based on FEM, but debt, cashflow, the market you're in and consumer sentiment all affect a share price thus the valuation of a company.

The question of a companies division being spun off isn't invalid and Sony have been the target of activist investors calling for spin offs before (albeit not PlayStation) so finding a hypothetical valuation would be interesting, actually.
 
OP
OP
Sillegamer
Oct 27, 2017
189
#16
I'm not being hostile but please, do some research into your threads and it'll make it much better for everyone.

As I said, valuations are based on FEM, but debt, cashflow, the market you're in and consumer sentiment all affect a share price thus the valuation of a company.

The question of a companies division being spun off isn't invalid and Sony have been the target of activist investors calling for spin offs before (albeit not PlayStation) so finding a hypothetical valuation would be interesting, actually.
Thanks for the info.

I was just wondering if PlayStation went wholly owned, how would its market cap be calculated.

It's interesting what its value would be without the wider organisation behind it.
 

SH-4

Alt account
Member
Aug 11, 2018
175
#18
Since when has ResetEra turned into a place of hostility.

I enjoy reading everybody's opinions on the business aspects of the console business - particularly Sony.

There is no agenda and it's beginning to look like an N4G comments section with the drive by snark.
I swear every thread you've posted relates to PS somehow, hence the comments.
 
Oct 27, 2017
3,297
#19
You are enjoying making all these Playstation threads, do you?
I’m about to contact a mod because this is getting ridiculous. Phantom Thief creates tons of Switch threads. Guys like Statham and others create Xbox topics. Why are people jumping all over him for making topics about Sony? If you don’t like it, ignore the thread instead of shitting them up.
 
Oct 28, 2017
1,021
UK
#23
If people complain about these threads you should do one that blends the usual stuff round here that will really blow their minds so they don't know how to reply.

LTTP: Uncharted 4 and Last of Us In Smash and about to be purchased by Microsoft.
 
Oct 27, 2017
8,623
UK
#26
~$30b is Nintendo's current market cap, so I'm guessing a little less than that.

In addition to Switch/3DS/software/classic consoles and more recently mobile, Nintendo's IP are simply more valuable as they transcend in to mainstream culture. Mario is a worldwide household name. As is Pokemon. However, where SIE currently has a key strength is in service revenue.

So yeah, I think take Nintendo and work down from there.
 
Oct 28, 2017
9,639
#27
I’m about to contact a mod because this is getting ridiculous. Phantom Thief creates tons of Switch threads. Guys like Statham and others create Xbox topics. Why are people jumping all over him for making topics about Sony? If you don’t like it, ignore the thread instead of shitting them up.
Hell I actually genuinely assumed Klobrille and Theorry were Microsoft employees due to them making so many posts and threads, consistently and constantly about Microsoft related news, figures, data, announcements, leaks etc. Klobrille has made a whopping 44 threads, and every single one is Microsoft related lol. Not seen this sort of response to their postings, so perhaps you have a point.
 
Last edited:
Oct 27, 2017
1,248
#28
I’m about to contact a mod because this is getting ridiculous. Phantom Thief creates tons of Switch threads. Guys like Statham and others create Xbox topics. Why are people jumping all over him for making topics about Sony? If you don’t like it, ignore the thread instead of shitting them up.
As you can see, I'm not alone noticed OP's obsession with PS threads. Also I didn't mean to be hostile, it was rather friendly joke.
 

JayC3

bork bork
Moderator
Oct 25, 2017
1,493
#32
Official Staff Communication
Please focus on the thread topic and not the OP's posting history. Thanks.
 
Oct 28, 2017
3,062
#33
Thanks for the info.

I was just wondering if PlayStation went wholly owned, how would its market cap be calculated.

It's interesting what its value would be without the wider organisation behind it.
I still don't see why it would be interesting at all, to be honest.
 
Oct 28, 2017
2,629
#37
Could you not work out what % of the companies revenues the gaming division makes up. Then apply that % to Sonys total market cap to get a rough approximation. UI

Edit: So by my sums which may be wrong the Games & Network Services is responsible for 22.7% of the companies revenue. Sony Corp market cap is 58.22bn. So I would guess around 13.2bn PlayStation is worth.
 
Last edited:
Oct 27, 2017
3,297
#38
Could you not work out what % of the companies revenues the gaming division makes up. Then apply that % to Sonys total market cap to get a rough approximation. UI

Edit: So by my sums which may be wrong the Games & Network Services is responsible for 22.7% of the companies revenue. Sony Corp market cap is 58.22bn. So I would guess around 13.2bn PlayStation is worth.
If we are going by those rough numbers, it would make sense to see why Sony is so reliant on PlayStation as the central pillar for the company at the moment.
 

Pablo Mesa

Banned
Member
Nov 23, 2017
6,878
#42
If PlayStation was to become fully independent of Sony, what would be the estimated market cap?

Surely, the success of SIE makes this an extremely valuable and profitable division.


FY 2018 Q2 saw PlayStation make $4.9 billion in sales and $800 million in profits.

What is everybody's analysis on the potential market cap?
I have always wondered if under Network and Services counts every transaction made tru PS (not only games but the movies/show and stuffs)
 
Oct 25, 2017
5,750
#43
This is very hard to answer because there are very few pure comparable companies and you don’t have data for just PlayStation. You’d have to make a lot of assumptions. One thing you could do to be super quick and dirt is find what multiple of ebit nintendo’s Enterprise value is and apply the same value to playstation’s adjusted operating income. Then subtract an assumed capital structure. I don’t know if PlayStation in its own would carry any debt.

Anyway very rough and dirty. You could obviously do this. It’s what bankers do. But what’s the point of the analysis?