The Discounted Cash Flow (DCF) valuation of Sumitomo Dainippon Pharma Co Ltd (4506.T) is 784.88 JPY. With the latest stock price at 1,032.00 JPY, the upside of Sumitomo Dainippon Pharma Co Ltd based on DCF is -23.9%.

Is 4506.T a buy or a sell?

Based on the latest price of 1,032.00 JPY and our DCF valuation, Sumitomo Dainippon Pharma Co Ltd (4506.T) is a sell. Selling 4506.T stocks now will result in a potential gain of 23.9%.

	Range	Selected
WACC / Discount Rate	4.4% - 5.9%	5.2%
Long-term Growth Rate	1.0% - 3.0%	2.0%
Fair Price	287.22 - 2,478.46	784.88
Upside	-72.2% - 140.2%	-23.9%

1,032.00 JPY

Stock Price

784.88 JPY

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

4506.T DCF Valuation: Revenue & Expenses Forecast

(JPY in millions)		Projections

	03-2025	03-2026	03-2027	03-2028	03-2029	03-2030

Revenue	398,832	377,466	372,472	387,581	396,597	418,002
% Growth	27%	-5%	-1%	4%	2%	5%

Cost of goods sold	(153,437)	(145,217)	(143,296)	(149,108)	(152,577)	(160,812)
% of Revenue	38%	38%	38%	38%	38%	38%

Selling, G&A expenses	(180,605)	(170,930)	(168,668)	(175,510)	(179,593)	(189,286)
% of Revenue	45%	45%	45%	45%	45%	45%

Research & Development	(49,865)	(47,194)	(46,569)	(48,458)	(49,586)	(52,262)
% of Revenue	13%	13%	13%	13%	13%	13%

Net interest & other expenses	2,686	2,542	2,508	2,610	2,671	2,815
% of Revenue	1%	1%	1%	1%	1%	1%

Tax expense	6,024	(5,104)	(5,036)	(5,240)	(5,362)	(5,652)
Tax rate	34%	31%	31%	31%	31%	31%

Net profit	23,635	11,564	11,411	11,874	12,150	12,806
% Margin	6%	3%	3%	3%	3%	3%