HappySqurriel said:
For the past 20 years, the average P/E for the S&P 500 has been closer to 25; and the relative growth prospects for Nintendo are better than average. |
Nintendo have zero presence in the new casual gaming markets, be it facebook or smart phone gaming.
Their only markets are home console and portable consoles.
Seeing the success they had in those markets this gen I have a hard time seeing how you can see growth for them in those markets ( market which by themselves are not really growing much). The only way Nintendo could have some growth there would be if they increased their market share compared to this gen and I have a hard time projecting the 3DS achieving a market share of over 70% or the Wii U having a market share of over 50%...
So where exactly are those prospects for growth ?
And if you really want to invest in stocks there are plenty stocks which are a lot safer now and have much better growth prospect. ( Google for example is quite a safe bet and the stock has decent growth perspective with the recent pullback..)