Internet Initiative Japan Inc (IIJIY) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Internet Initiative Japan Inc stock $35.28, price $45.49, that is 22.4% below the price, quality 63 out of 100. Rating: overvalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 8, 2026.
How to read this chart
60‑month range $10.11 – $47.46 · fair‑value band $26.51 – $44.06 · the $45.49 price screens above the $35.28 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 8, 2026.
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Internet Initiative Japan Inc. provides Internet connectivity, WAN, outsourcing, and systems integration services in Japan.
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The company offers mobile communication and remote access/telework services; WAN/network services, including SDN, multi-cloud network, closed connection, internet VPN, SEIL, remote access, wireless LAN, and GIGA-school; leased line and broadband services; IIJ DNS platform, and domain registration services; IIJ access ID management, and IIJ IPv6 fiber access services; and security solutions for IIJ managed firewall, DDoS protection, and managed IPS/IDS services.
It also provides cloud solutions, such as HaaS/IaaS, cloud platform and storage, monitoring/operation, virtual desktop, Paas/Saas, solution for Microsoft and AWS, IoT/M2M, ID management and authentication, network, global, mobile, license, and specialized solutions; integrated, network, mail, and web security, endpoint, security assessment/consulting, web and mail hosting, online storage, content delivery/CDN/CMS, and system integration; IoT services and solutions for industrial, agriculture, energy, and IoT-oriented mobile communication; industry-specific solution; content delivery; and global/privacy products.
In addition, the company offers IIJ PC deployment support, IIJ EMM utilization support, IIJ DWP device supply, and IIK flex resilience service; IT outsourcing, IIJ consulting, cognitive factory, network solutions, IIJ PaaS solution, human resources assessment, talent find and growth, security audit, malware analysis, content management, identity and access management, DataVisualization, cloud integration solution, Microsoft 365 transition support solution, and EMM utilization support; and data center services.
The company was incorporated in 1992 and is headquartered in Tokyo, Japan.
Stock analysis
Internet Initiative Japan Inc (IIJIY) currently trades at $45.49, while our model-based Fair Value estimate is $35.28, 22% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth DCF group reads highest at a median of $50.45 per share, and 9 of the 26 models we run sit above the $45.49 price.
Bear case: the Asset-Based group reads lowest at $5.97, and 17 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: $26.51 (bear) to $44.06 (bull), the price of $45.49 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 63/100 (solid quality), in the Communication Services sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Internet Initiative Japan Inc ADR reported revenue of ¥366B in FY2026 versus ¥226B in FY2022, a compound +12.8%/yr. Reported net income was ¥25.6B in FY2026, compounding +13.1%/yr from FY2022.
Key figures
Market cap $4.0B Mid · P/E ratio 25.1 · P/S ratio 1.76 · EPS (TTM) $1.81 · Dividend yield 1.1% · Net margin 7.0% · Return on equity 16.3% · Return on assets (EBIT) 10.3% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 50 out of 100 (low confidence).
What moves the price
The share trades about 4% below its 52-week high and 68% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Communication Services peers we cover trades at 51% fair-value upside, at −22%, IIJIY screens richer than that median.
Fair Value models
Bear$26.51Fair Value $35.28Bull$44.06
Price $45.49 · Downside -22.4%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 7 months old). Earnings retained since then ($1.10 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.81/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+15.6%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+13.2%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+11.4%
Start year 2021 (pandemic). Over 10 years: +10.0% a year
Revenue growth 27 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+12.6%
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What shareholders gained per year (last 5 years), in JPY ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in JPY: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+23.0%
Earnings growth per share plus dividend.
Earnings per share, growth per year+21.9%
Dividend (yield on the price)1.1%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.21.9% vs 23.1%, steady
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.7% → 10%
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
Price in line with expectations
The price assumes less growth than the company has delivered so far and about what analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+6.2%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+7.1%
Yearly sales growth analysts expect, extended to five years.
After inflation (figures in JPY, Japan: IMF forecast 2.1% a year to 2030, 1.3% from 2016 to 2025) that is about +4.1% a year for the price and +4.9% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (54 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
AI conclusion: IIJ draws its main strength from managed network solutions tailored to Japanese enterprises yet lacks any clear durable moat in a competitive telecom market that caps long-term pricing power.
Main risk: Intense telecom competition may limit long-term pricing strength and thereby constrain recurring revenue growth from the upgraded SD-WAN offerings.
IIJ is adding 10Gbps support to its SD-WAN service to meet demand for faster enterprise connections that pair with SASE and SSE offerings. The move builds on its core strength in managed network solutions for Japanese companies. Will the higher-speed capabilities drive more stable recurring revenue or mainly increase upfront costs and competition?
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Telecom Services · 235 stocks
Beats the industry median on 6/14 measures
A mixed picture versus its industry peers.
Valuation
Quality Score63 · Top 25%
Fair Value upside−22.4% · Below median
Profitability
Return on equity (12 months)16.3% · Above median
Return on assets7.4% · Top 25%
Net margin (12 months)6.8% · Above median
Operating margin (12 months)6.8% · Below median
Growth and dividend
Revenue growth (quarter YoY)27.1% · Top 25%
Dividend yield (12 months)1.1% · Bottom 25%
Valuation Multiplesvs Telecom Services median · lower = cheaper
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Cite: Fair Value Calculator (2026). "Internet Initiative Japan Inc ADR Fair Value". https://www.fairvalue-calculator.com/stock/IIJIY
Frequently asked questions
Is Internet Initiative Japan Inc (IIJIY) overvalued or undervalued?
As of Nov 8, 2026, our model estimates a fair value of $35.28 versus a price of $45.49, about 22% lower (overvalued).
What is the fair value of IIJIY?
Our model-based fair value for Internet Initiative Japan Inc is $35.28 (as of Nov 8, 2026), built from audited fundamentals. The current price: $45.49.
What is the quality score of IIJIY?
Internet Initiative Japan Inc has a Quality Score of 63/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Internet Initiative Japan Inc (IIJIY)?
Our model-based price target is the fair value of $35.28 (as of Nov 8, 2026) from 26 valuation models. Cautious scenario $26.51, optimistic scenario $44.06. It is a calculation from audited fundamentals, not an analyst target.
What is the Internet Initiative Japan Inc ADR stock forecast for 2026?
Our models put fair value at $35.28, about 22% lower versus a price of $45.49 (overvalued). Cautious scenario $26.51, optimistic scenario $44.06. The calculation is refreshed regularly with new filings.
What is the revenue of Internet Initiative Japan Inc (IIJIY)?
Internet Initiative Japan Inc reported trailing-twelve-month revenue of about ¥366B (latest available figure, as of Nov 8, 2026).
Does Internet Initiative Japan Inc ADR pay a dividend?
Internet Initiative Japan Inc currently shows a dividend yield of 1.08% relative to its recent price (as of Nov 8, 2026).
How much is the dividend of Internet Initiative Japan Inc (IIJIY) and when is the ex-dividend date?
Internet Initiative Japan Inc has a dividend yield of 1.1%. The last ex-dividend date was Mar 31, 2026. A dividend has been paid every year since at least 2007. The payout ratio is 26.9% of earnings. Free cash flow covers the dividend 4.62 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into Internet Initiative Japan Inc (IIJIY)?
For today's price to be fair in a discounted-cash-flow model, Internet Initiative Japan Inc would have to grow free cash flow by +6.2 % per year for five years (discount rate 8.5 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +11.5 % per year. As of Nov 8, 2026.
What discount rate (WACC) does the fair value of IIJIY use?
Our models discount Internet Initiative Japan Inc at 8.5 %: a base by market capitalisation (mid), damped by beta 0.30, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Internet Initiative Japan Inc that is +6.2 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (8.5 %) and the same formula as our fair value.
How much growth has Internet Initiative Japan Inc (IIJIY) delivered so far?
Over the past 5 years revenue at Internet Initiative Japan Inc grew +11.5 % a year. The price currently implies free-cash-flow growth of +6.2 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Internet Initiative Japan Inc (IIJIY) growing?
The median revenue growth in the sector is +3.8 % a year. That is the yardstick for the growth priced into Internet Initiative Japan Inc (+6.2 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Internet Initiative Japan Inc (IIJIY)?
The free-cash-flow yield on the price is 4.97 %: that much free cash flow Internet Initiative Japan Inc produces per unit of market value. When it exceeds the discount rate of our models (8.5 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Internet Initiative Japan Inc (IIJIY)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Internet Initiative Japan Inc it is $35.28 per share (as of Nov 8, 2026), against a price of $45.49. It is the blended result of 26 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is Internet Initiative Japan Inc ADR stock overvalued or undervalued in 2026?
As of Nov 8, 2026, IIJIY trades above its calculated fair value: price $45.49, fair value $35.28, a gap of about −22% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of IIJIY?
No. The price is what the market pays today ($45.49); the fair value is what the company's own numbers justify ($35.28). For Internet Initiative Japan Inc the two are $10.21 per share apart. That gap is exactly why we show both numbers side by side.
How much is Internet Initiative Japan Inc ADR worth?
The market values Internet Initiative Japan Inc at about $4.0B (market capitalisation, as of Nov 8, 2026). Per share that is $45.49; our models calculate a fair value of $35.28 per share.
What do the bullish and bearish scenarios say about IIJIY?
Our models span a range for Internet Initiative Japan Inc: cautious scenario $26.51, base $35.28, optimistic $44.06 per share (as of Nov 8, 2026, price $45.49). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of IIJIY?
Internet Initiative Japan Inc trades at a price-to-earnings ratio of 25.1 (as of Nov 8, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $35.28 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2017 to 2026), reported earnings: 25.0. Other multiples: PEG 0.3, P/B 4.0, P/S 1.8, EV/EBITDA 8.8.
What is the PEG ratio of IIJIY?
The PEG ratio of Internet Initiative Japan Inc is 0.34 (P/E divided by earnings growth, as of Nov 8, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of Internet Initiative Japan Inc (IIJIY)?
Balance-sheet figures for Internet Initiative Japan Inc (as of Nov 8, 2026): return on equity 16.3%. They feed the Quality Score of 63/100, which measures business quality independently of the share price.
How far is IIJIY from its 52-week high?
Internet Initiative Japan Inc trades at $45.49, about 4% below its 52-week high of $47.46 and 68% above the low of $27.03 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $35.28 is for.
Which stocks are comparable to Internet Initiative Japan Inc ADR?
From the same area (Communication Services) we also value China Mobile Limited, Verizon Communications Inc, T-Mobile US, Inc, AT&T Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Internet Initiative Japan Inc ADR stock attractive at the current price?
The data as of Nov 8, 2026: price $45.49, calculated fair value $35.28 (−22%), Quality Score 63/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of IIJIY calculated?
We run Internet Initiative Japan Inc through 26 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $35.28 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.0% above its aggregate fair value. Internet Initiative Japan Inc itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Internet Initiative Japan Inc (IIJIY)?
The closing price on Nov 6, 2026 was $45.49. Our model-based fair value is $35.28, about 22% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Internet Initiative Japan Inc ADR right now?
The price sits above even our optimistic bull case ($44.06). The favourable scenario is already priced in. Solid but not exceptional quality (63/100) and above fair value, neither a clear bargain nor a standout compounder.
Where does the earnings growth of Internet Initiative Japan Inc (IIJIY) come from?
Earnings per share at Internet Initiative Japan Inc grew +22.9 % a year from 2015 to 2026. Broken into its drivers: revenue per share +10.0 %, EBIT margin +11.0 %, tax rate +1.1 %, residual (interest, one-offs) −0.3 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Internet Initiative Japan Inc
How large is the market capitalisation of Internet Initiative Japan Inc (IIJIY)?
The market capitalisation of Internet Initiative Japan Inc is $4.0B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Internet Initiative Japan Inc (IIJIY)?
The price-to-sales ratio of Internet Initiative Japan Inc is 1.76 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Internet Initiative Japan Inc (IIJIY)?
Earnings per share at Internet Initiative Japan Inc are $1.81 (price ÷ EPS = P/E 25.1). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Internet Initiative Japan Inc (IIJIY)?
The dividend yield of Internet Initiative Japan Inc is 1.1% (payout 27.1%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Internet Initiative Japan Inc (IIJIY)?
The net margin of Internet Initiative Japan Inc is 7.0% (fiscal year 2026). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Internet Initiative Japan Inc (IIJIY)?
The return on equity (ROE) of Internet Initiative Japan Inc is 16.3% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Internet Initiative Japan Inc (IIJIY)?
On an EBIT basis the return on assets of Internet Initiative Japan Inc is 10.3% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Internet Initiative Japan Inc (IIJIY)?
The operating margin of Internet Initiative Japan Inc is 6.8% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Internet Initiative Japan Inc (IIJIY)?
Revenue at Internet Initiative Japan Inc is growing +27.1% versus a year earlier (3y avg +13.2%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Internet Initiative Japan Inc (IIJIY)?
Earnings per share at Internet Initiative Japan Inc are growing +28.6% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Internet Initiative Japan Inc (IIJIY) hold?
Internet Initiative Japan Inc holds more cash than debt, ¥2.8B net (fiscal year 2026). The company holds more cash than debt, a safety cushion.
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Broad data
Nov 8, 2026