The Discounted Cash Flow (DCF) valuation of Nippon Gear Co Ltd (6356.T) is 2,066.37 JPY. With the latest stock price at 533.00 JPY, the upside of Nippon Gear Co Ltd based on DCF is 287.7%.

Is 6356.T a buy or a sell?

Based on the latest price of 533.00 JPY and our DCF valuation, Nippon Gear Co Ltd (6356.T) is a buy. Buying 6356.T stocks now will result in a potential gain of 287.7%.

	Range	Selected
WACC / Discount Rate	5.6% - 8.0%	6.8%
Long-term Growth Rate	0.0% - 1.0%	0.5%
Fair Price	1,725.02 - 2,658.41	2,066.37
Upside	223.6% - 398.8%	287.7%

533.00 JPY

Stock Price

2,066.37 JPY

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

6356.T DCF Valuation: Revenue & Expenses Forecast

(JPY in millions)		Projections

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

Revenue	9,556	9,999	10,199	10,403	10,720	11,077
% Growth	1%	5%	2%	2%	3%	3%

Cost of goods sold	(5,290)	(5,535)	(5,646)	(5,759)	(5,934)	(6,132)
% of Revenue	55%	55%	55%	55%	55%	55%

Selling, G&A expenses	(2,160)	(2,260)	(2,305)	(2,352)	(2,423)	(2,504)
% 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	176	184	187	191	197	204
% of Revenue	2%	2%	2%	2%	2%	2%

Tax expense	(731)	(760)	(775)	(791)	(815)	(842)
Tax rate	32%	32%	32%	32%	32%	32%

Net profit	1,550	1,627	1,660	1,693	1,744	1,803
% Margin	16%	16%	16%	16%	16%	16%