• Light/Dark
  • Ever wanted an RSS feed of all your favorite gaming news sites? Go check out our new Gaming Headlines feed! Read more about it here.

Playstation Estimated Market Cap?

Sillegamer

Sillegamer

Member
Oct 27, 2017
343
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?
 
Patitoloco

Patitoloco

Banned
Oct 27, 2017
23,595
You must be making quite a poll, in one week you must have asked every single Playstation/Sony question possible lol
 

Deleted member 2652

user requested account closure
Banned
Oct 25, 2017
3,434
the potential market cap is $0 because it will always be a sony product

brand loyalty skeeves me out
 
Stop It

Stop It

Bad Cat
Member
Oct 25, 2017
6,346
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

Sillegamer

Member
Oct 27, 2017
343
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.
 
Joeyro

Joeyro

Member
Oct 28, 2017
1,757
Sillegamer said:
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.
Click to expand...
Click to shrink...
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.
 
OrdinaryPrime

OrdinaryPrime

Self-requested ban
Banned
Oct 27, 2017
11,042
Sillegamer said:
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.
Click to expand...
Click to shrink...

Joke back. There's no bite in it my friend.
 
Stop It

Stop It

Bad Cat
Member
Oct 25, 2017
6,346
Sillegamer said:
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.
Click to expand...
Click to shrink...
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

Sillegamer

Member
Oct 27, 2017
343
Stop It said:
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.
Click to expand...
Click to shrink...
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.
 
Sid

Sid

Banned
Mar 28, 2018
3,755
IDK about the market cap but by any chance are you the PS MVP guy from NeoGAF?
 
Philly Cheesesteak

Philly Cheesesteak

Banned
Oct 27, 2017
3,297
whiskas_fanatic said:
You are enjoying making all these Playstation threads, do you?
Click to expand...
Click to shrink...

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.
 
Magoo

Magoo

Member
Oct 28, 2017
2,228
UK
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.
 
pswii60

pswii60

Member
Oct 27, 2017
26,646
The Milky Way
~$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.
 
nib95

nib95

Contains No Misinformation on Philly Cheesesteaks
Banned
Oct 28, 2017
18,498
Philly Cheesesteak said:
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.
Click to expand...
Click to shrink...

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:
whiskas_fanatic

whiskas_fanatic

Banned
Oct 27, 2017
1,248
Philly Cheesesteak said:
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.
Click to expand...
Click to shrink...
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

JayC3

bork bork
Administrator
Oct 25, 2017
3,857
Official Staff Communication
Please focus on the thread topic and not the OP's posting history. Thanks.
 

Lagspike_exe

Banned
Dec 15, 2017
1,974
Nintendo EV/EBITDA is 12.55, so take SIE EBITDA and multiply by 12 to get an approximation of firm value.
 
TechnicPuppet

TechnicPuppet

Member
Oct 28, 2017
10,807
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:
Philly Cheesesteak

Philly Cheesesteak

Banned
Oct 27, 2017
3,297
TechnicPuppet said:
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.
Click to expand...
Click to shrink...

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

Pablo Mesa

Banned
Nov 23, 2017
6,878
Sillegamer said:
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?
Click to expand...
Click to shrink...
I have always wondered if under Network and Services counts every transaction made tru PS (not only games but the movies/show and stuffs)
 
Y2Kev

Y2Kev

Member
Oct 25, 2017
13,834
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?
 
You must log in or register to reply here.