brandon1546 said: If you look at the current value of the companies, Nintendo is worth $47B and Sony is worth only about a third more at $60B. This is quite remarkable when Playstation is only 25% of Sony's revenue. So either the remaining 75% of Sony is viewed as only worth $13B, or (more likely), the investing community views Nintendo as more valuable than PlayStation. |
When you look at shareprice/marketcap you need to also take into account things like P/E which show how much sentiment/future growth is built into the company. Currently Nintendo sits on a PE of 38 while Sony is on 12. Personally I think this makes Nintendo a little overvalued or at least a much higher risk share as the future growth is already built into the shareprice, any hiccups would see a major drop. Sony's price however is probably fair.