The Discounted Cash Flow (DCF) valuation of Sankyo Co Ltd (6417.T) is 4,086.08 JPY. With the latest stock price at 2,697.00 JPY, the upside of Sankyo Co Ltd based on DCF is 51.5%.

Is 6417.T a buy or a sell?

Based on the latest price of 2,697.00 JPY and our DCF valuation, Sankyo Co Ltd (6417.T) is a buy. Buying 6417.T stocks now will result in a potential gain of 51.5%.

	Range	Selected
WACC / Discount Rate	6.7% - 8.6%	7.6%
Long-term Growth Rate	0.0% - 1.0%	0.5%
Fair Price	3,550.46 - 4,901.94	4,086.08
Upside	31.6% - 81.8%	51.5%

2,697.00 JPY

Stock Price

4,086.08 JPY

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

6417.T DCF Valuation: Revenue & Expenses Forecast

(JPY in millions)		Projections

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

Revenue	191,821	203,371	210,169	230,872	242,324	250,202
% Growth	4%	6%	3%	10%	5%	3%

Cost of goods sold	(79,492)	(84,279)	(87,095)	(95,675)	(100,421)	(103,686)
% of Revenue	41%	41%	41%	41%	41%	41%

Selling, G&A expenses	(20,264)	(21,484)	(22,202)	(24,389)	(25,599)	(26,431)
% of Revenue	11%	11%	11%	11%	11%	11%

Research & Development	(18,459)	(19,570)	(20,225)	(22,217)	(23,319)	(24,077)
% of Revenue	10%	10%	10%	10%	10%	10%

Net interest & other expenses	1,397	1,481	1,531	1,681	1,765	1,822
% of Revenue	1%	1%	1%	1%	1%	1%

Tax expense	(21,010)	(22,275)	(23,020)	(25,287)	(26,542)	(27,404)
Tax rate	28%	28%	28%	28%	28%	28%

Net profit	53,993	57,244	59,157	64,985	68,208	70,426
% Margin	28%	28%	28%	28%	28%	28%