Sony Group Corporation
Thesis
Sony is undervalued at around 10x earnings, ex-cash, and is a leader in video games, music rights, and TV/film production. The market misunderstands its business model, viewing it as cyclical when it has transitioned to a recurring, software-driven platform with strong network effects.
Did it work?
The long thesis called for a re-rating of Sony from a misunderstood 'cyclical' valuation (~10x earnings ex-cash) toward recognition of its recurring, platform-driven businesses in gaming, music, and film. The stock delivered +148.5% since the pitch, a decisive move in the direction of the thesis that strongly validates the undervaluation claim. Even without a stated time horizon, a return of this magnitude indicates the market substantially closed the perceived valuation gap.