The Discounted Cash Flow (DCF) valuation of Renesas Electronics Corp (6723.T) is 1,274.99 JPY. With the latest stock price at 1,778.00 JPY, the upside of Renesas Electronics Corp based on DCF is -28.3%.

Is 6723.T a buy or a sell?

Based on the latest price of 1,778.00 JPY and our DCF valuation, Renesas Electronics Corp (6723.T) is a sell. Selling 6723.T stocks now will result in a potential gain of 28.3%.

	Range	Selected
WACC / Discount Rate	6.8% - 8.6%	7.7%
Long-term Growth Rate	2.0% - 4.0%	3.0%
Fair Price	780.92 - 2,443.65	1,274.99
Upside	-56.1% - 37.4%	-28.3%

1,778.00 JPY

Stock Price

1,274.99 JPY

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

6723.T DCF Valuation: Revenue & Expenses Forecast

(JPY in millions)		Projections

	12-2024	12-2025	12-2026	12-2027	12-2028	12-2029

Revenue	1,348,479	1,183,602	1,207,274	1,231,419	1,271,180	1,296,604
% Growth	8%	-12%	2%	2%	3%	2%

Cost of goods sold	(598,683)	(525,483)	(535,992)	(546,712)	(564,365)	(575,652)
% of Revenue	44%	44%	44%	44%	44%	44%

Selling, G&A expenses	(180,720)	(158,624)	(161,796)	(165,032)	(170,361)	(173,768)
% of Revenue	13%	13%	13%	13%	13%	13%

Research & Development	(249,649)	(219,125)	(223,507)	(227,977)	(235,338)	(240,045)
% of Revenue	19%	19%	19%	19%	19%	19%

Net interest & other expenses	(55,594)	(48,797)	(49,773)	(50,768)	(52,407)	(53,455)
% of Revenue	4%	4%	4%	4%	4%	4%

Tax expense	(44,408)	(46,550)	(47,481)	(48,430)	(49,994)	(50,994)
Tax rate	17%	20%	20%	20%	20%	20%

Net profit	219,425	185,025	188,725	192,500	198,715	202,689
% Margin	16%	16%	16%	16%	16%	16%