Nintendo: Japan's 9th Largest Corporation By Market Capitalization ($61 BN)

[TheSource]

http://biz.yahoo.com/seekingalpha/070720/41781_id.html?.v=1

 When reading this a couple notes to consider:

1) Other companies have much higher revenue.

2) Nintendo's Market Capitalization was $51 billion a few weeks ago - if it keeps gaining like this it could enter the top 5, later on, if trends continue into 2008 it could potentially get as high as number 3 on the list, although I just don't see Nintendo ever reaching Toyota or Mitsubishi levels of insanity...

Seeking Alpha
Nintendo Sets Another New High, Becomes Ninth Largest Japanese Company
Friday July 20, 9:36 am ET

Steven Towns submits: It seems like nothing can stop Nintendo (JP: 7974) as it has gained 10.3% to ¥52,900 in two past two sessions, after losing 4.5% mid-week following its first close above ¥50,000.

Nintendo is now the ninth largest Japanese company by market cap ahead of the likes of Takeda Pharma, Nippon Steel, Japan Tobacco and Sony (JP: 6758) (NYSE: SNE - News).

Nintendo rose 4.6% overnight to ¥52,900 ($54.16 ADR equiv. at ¥122.1/$1), increasing its market capitalization to nearly ¥7.5 trillion ($61.4b).

Nintendo's ADRs closed up 5.9% to $52.15 Thursday.

Nintendo's ordinary shares are trading around 38.8x trailing and forward earnings. Bears will cite valuation and call Nintendo pricey, but Nintendo can certainly go higher, as it had traded with a p/e above 40 in the past, before upward revising its earnings forecast.

At 40x earnings, Nintendo would be trading at about ¥54,500, or 3% higher than its Friday close. That doesn't seem like much upside, but the key question is how much Nintendo will raise its guidance, as Wii and DS hardware/software sales remain robust and the yen is weaker than its original estimate.

10-Largest Japanese Companies by Market Cap

1. Toyota (NYSE: TM - News) ¥27.3 trillion ($223.6b)
2. Mitsubishi UFJ (NYSE: MTU - News) ¥14.2 trillion ($116.3b)
3. Mizuho FG (NYSE: MFG - News) ¥9.8 trillion ($80.3b)
4. Canon (NYSE: CAJ - News) ¥9.6 trillion ($78.6b)
5. Mitsui Sumitomo FG ¥8.7 trillion ($71.3b)
6. NTT (NYSE: NTT - News) ¥8.5 trillion ($69.6b)
7. Honda (NYSE: HMC - News) ¥8.35 trillion ($68.4b)
8. NTT DoCoMo (NYSE: DCM - News) ¥8.3 trillion ($67.9b)
9. Nintendo ¥7.5 trillion ($61.4b)
10. Takeda Pharma ¥7.2 trillion ($59b)

* Values as of Friday 7/20 Tokyo close; all figures rounded to nearest ¥100 billion; US$ figures converted at ¥122.1 for convenience; tickers are for respective exchange-listed ADRs