A Treasure Trove of Stocks Trading Below 1x Book Value: Zooming In on “Broadcasters,” Where Restructuring Momentum Is Building <Kabutan Top Feature> Posted: 8 October 2026, 19:30 [Kabutan]

The purpose of the latest revision is to promote integration among broadcasters by allowing one broadcaster to operate multiple channels in the same region. The revision of the Broadcast Act came against a backdrop that included worsening financial conditions at regional stations and the rise of the internet, reflecting the government's acceptance of a review of the regulatory framework.

Industry participants envisage several restructuring patterns, including the integration and restructuring of regional stations within a network and the restructuring of stations in the same prefecture and within the same network. This is expected to improve operating efficiency through shared broadcasting infrastructure and cost reductions, although where an improvement in earnings power is not assured, there is a risk that the process will amount to little more than a rescue merger.

The actions of Fuji Media Holdings are cited as a good example of a broadcaster using external capital and strengthening shareholder returns to increase corporate value. They may serve as a reference case for other broadcasters in the future.

Television broadcasters often have PBRs below 1x, making improved profitability through deregulation and reforms to shareholder returns critical. Deregulation could in practice accelerate industry restructuring and change the stock market's assessment of the sector.

Separately from the restructuring of the broadcasting industry, attention is also focused on the financial soundness of Nippon BS Broadcasting. The broadcaster has a high equity ratio, and its valuation could change significantly depending on changes to its financial and capital policies.