The Discounted Cash Flow (DCF) valuation of Nintendo Co Ltd (7974.T) is 6,438.46 JPY. With the latest stock price at 12,685 JPY, the upside of Nintendo Co Ltd based on DCF is -49.2%.

Is 7974.T a buy or a sell?

Based on the latest price of 12,685 JPY and our DCF valuation, Nintendo Co Ltd (7974.T) is a sell. Selling 7974.T stocks now will result in a potential gain of 49.2%.

	Range	Selected
WACC / Discount Rate	6.0% - 8.3%	7.1%
Long-term Growth Rate	1.0% - 3.0%	2.0%
Fair Price	5,015.21 - 9,907.51	6,438.46
Upside	-60.5% - -21.9%	-49.2%

12,685 JPY

Stock Price

6,438.46 JPY

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

7974.T DCF Valuation: Revenue & Expenses Forecast

(JPY in millions)		Projections

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

Revenue	1,164,922	2,059,331	2,356,890	2,531,375	2,781,822	3,096,480
% Growth	30%	77%	14%	7%	10%	11%

Cost of goods sold	(454,754)	(803,907)	(920,066)	(988,180)	(1,085,948)	(1,208,782)
% of Revenue	39%	39%	39%	39%	39%	39%

Selling, G&A expenses	(427,614)	(755,929)	(865,156)	(929,205)	(1,021,138)	(1,136,641)
% of Revenue	37%	37%	37%	37%	37%	37%

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

Net interest & other expenses	89,777	158,706	181,638	195,085	214,387	238,636
% of Revenue	8%	8%	8%	8%	8%	8%

Tax expense	(93,478)	(184,017)	(210,606)	(226,198)	(248,577)	(276,694)
Tax rate	25%	28%	28%	28%	28%	28%

Net profit	278,853	474,184	542,700	582,877	640,546	712,999
% Margin	24%	23%	23%	23%	23%	23%