The Discounted Cash Flow (DCF) valuation of Nitto Denko Corp (6988.T) is 4,104.59 JPY. With the latest stock price at 2,848.50 JPY, the upside of Nitto Denko Corp based on DCF is 44.1%.

Is 6988.T a buy or a sell?

Based on the latest price of 2,848.50 JPY and our DCF valuation, Nitto Denko Corp (6988.T) is a buy. Buying 6988.T stocks now will result in a potential gain of 44.1%.

	Range	Selected
WACC / Discount Rate	5.2% - 7.7%	6.4%
Long-term Growth Rate	0.5% - 1.5%	1.0%
Fair Price	3,277.74 - 5,710.55	4,104.59
Upside	15.1% - 100.5%	44.1%

2,848.50 JPY

Stock Price

4,104.59 JPY

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

6988.T DCF Valuation: Revenue & Expenses Forecast

(JPY in millions)		Projections

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

Revenue	1,013,878	1,035,582	1,083,558	1,109,309	1,161,580	1,199,650
% Growth	11%	2%	5%	2%	5%	3%

Cost of goods sold	(618,365)	(631,603)	(660,863)	(676,568)	(708,449)	(731,668)
% of Revenue	61%	61%	61%	61%	61%	61%

Selling, G&A expenses	(151,835)	(155,085)	(162,270)	(166,126)	(173,954)	(179,656)
% of Revenue	15%	15%	15%	15%	15%	15%

Research & Development	(46,771)	(47,772)	(49,985)	(51,173)	(53,585)	(55,341)
% of Revenue	5%	5%	5%	5%	5%	5%

Net interest & other expenses	(11,578)	(11,826)	(12,374)	(12,668)	(13,265)	(13,699)
% of Revenue	1%	1%	1%	1%	1%	1%

Tax expense	(48,021)	(49,049)	(51,321)	(52,541)	(55,017)	(56,820)
Tax rate	26%	26%	26%	26%	26%	26%

Net profit	137,308	140,247	146,745	150,232	157,311	162,467
% Margin	14%	14%	14%	14%	14%	14%