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I initiated coverage on Sony Group Corporation (NYSE:SONY) just more than 3 years ago with a thesis that the company's sum of the parts was worth much more than what it was
Sony Continues To Be Cheap Relative To Peers
Summary
- Sony's sum-of-the-parts valuation still suggests the stock is undervalued, despite recent gains.
- That's despite a strong rise in the stock over the past year, but its peers' valuation has increased as well.
- Medium term, the company is focused on developing a flywheel by housing its different entertainment businesses under one roof.
- Nintendo's multiple expansion is one of the biggest risks to my current price target, as the valuation of all other peers has actually compressed.
I'm an individual investor who looks for opportunities primarily in unloved stocks. For the past 10 years, I've invested in stocks in the US as well as abroad in unloved markets like the Middle-East and Africa. Thomas Phelps' 100-1 and Philip Phisher are huge inspirations to my investing approach. I'll look to write about stocks that present Time Arbitrage opportunities or have some optionality embedded in them.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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