The Discounted Cash Flow (DCF) valuation of Hitachi Ltd (6501.T) is 2,382.99 JPY. With the latest stock price at 4,040.00 JPY, the upside of Hitachi Ltd based on DCF is -41%.

Is 6501.T a buy or a sell?

Based on the latest price of 4,040.00 JPY and our DCF valuation, Hitachi Ltd (6501.T) is a sell. Selling 6501.T stocks now will result in a potential gain of 41%.

	Range	Selected
WACC / Discount Rate	6.7% - 9.1%	7.9%
Long-term Growth Rate	2.0% - 4.0%	3.0%
Fair Price	1,701.12 - 4,141.61	2,382.99
Upside	-57.9% - 2.5%	-41.0%

4,040.00 JPY

Stock Price

2,382.99 JPY

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

6501.T DCF Valuation: Revenue & Expenses Forecast

(JPY in millions)		Projections

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

Revenue	9,783,370	10,677,644	11,458,921	11,961,101	12,368,433	12,910,254
% Growth	1%	9%	7%	4%	3%	4%

Cost of goods sold	(6,962,527)	(7,598,955)	(8,154,966)	(8,512,352)	(8,802,237)	(9,187,835)
% of Revenue	71%	71%	71%	71%	71%	71%

Selling, G&A expenses	(1,849,237)	(2,018,271)	(2,165,947)	(2,260,868)	(2,337,861)	(2,440,276)
% of Revenue	19%	19%	19%	19%	19%	19%

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

Net interest & other expenses	(8,873)	(9,684)	(10,393)	(10,848)	(11,218)	(11,709)
% of Revenue	0%	0%	0%	0%	0%	0%

Tax expense	(305,868)	(253,271)	(271,803)	(283,715)	(293,377)	(306,228)
Tax rate	32%	24%	24%	24%	24%	24%

Net profit	656,865	797,463	855,813	893,318	923,740	964,206
% Margin	7%	7%	7%	7%	7%	7%