The Discounted Cash Flow (DCF) valuation of Teraoka Seisakusho Co Ltd (4987.T) is (1,379. JPY. With the latest stock price at 561.00 JPY, the upside of Teraoka Seisakusho Co Ltd based on DCF is -345.9%.

Is 4987.T a buy or a sell?

Based on the latest price of 561.00 JPY and our DCF valuation, Teraoka Seisakusho Co Ltd (4987.T) is a sell. Selling 4987.T stocks now will result in a potential gain of 345.9%.

Note: valuation result may not be accurate due to the company's negative earnings.

	Range	Selected
WACC / Discount Rate	4.7% - 6.9%	5.8%
Long-term Growth Rate	3.0% - 4.4%	3.7%
Fair Price	(12,288.45) - (684.04)	(1,379.65)
Upside	-2290.5% - -221.9%	-345.9%

561.00 JPY

Stock Price

(1,379. JPY

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

4987.T DCF Valuation: Revenue & Expenses Forecast

(JPY in millions)		Projections

	03-2023	03-2024	03-2025	03-2026	03-2027	03-2028

Revenue	19,317	18,131	18,494	19,058	19,439	19,883
% Growth	14%	-6%	2%	3%	2%	2%

Cost of goods sold	(16,505)	(14,717)	(14,261)	(13,961)	(13,528)	(13,146)
% of Revenue	85%	81%	77%	73%	70%	66%

Selling, G&A expenses	(4,502)	(4,226)	(4,310)	(4,442)	(4,530)	(4,634)
% of Revenue	23%	23%	23%	23%	23%	23%

Research & Development	0	0	0	0	0	0
% of Revenue	0%	0%	0%	0%	0%	0%

Net interest & other expenses	(2,014)	(1,890)	(1,928)	(1,987)	(2,027)	(2,073)
% of Revenue	10%	10%	10%	10%	10%	10%

Tax expense	97	827	614	408	198	(9)
Tax rate	-3%	31%	31%	31%	31%	31%

Net profit	(3,607)	(1,875)	(1,391)	(924)	(449)	21
% Margin	-19%	-10%	-8%	-5%	-2%	0%