The Discounted Cash Flow (DCF) valuation of Hiroshima Gas Co Ltd (9535.T) is 640.70 JPY. With the latest stock price at 357.00 JPY, the upside of Hiroshima Gas Co Ltd based on DCF is 79.5%.

Is 9535.T a buy or a sell?

Based on the latest price of 357.00 JPY and our DCF valuation, Hiroshima Gas Co Ltd (9535.T) is a buy. Buying 9535.T stocks now will result in a potential gain of 79.5%.

	Range	Selected
WACC / Discount Rate	3.9% - 5.8%	4.9%
Long-term Growth Rate	0.0% - 1.0%	0.5%
Fair Price	413.2 - 1,094.53	640.70
Upside	15.7% - 206.6%	79.5%

357.00 JPY

Stock Price

640.70 JPY

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

9535.T DCF Valuation: Revenue & Expenses Forecast

(JPY in millions)		Projections

	03-2024	03-2025	03-2026	03-2027	03-2028	03-2029

Revenue	76,802	82,740	86,277	92,263	97,894	99,851
% Growth	-	8%	4%	7%	6%	2%

Cost of goods sold	(48,592)	(52,349)	(54,587)	(58,374)	(61,936)	(63,175)
% of Revenue	63%	63%	63%	63%	63%	63%

Selling, G&A expenses	(19,199)	(20,683)	(21,568)	(23,064)	(24,471)	(24,961)
% of Revenue	25%	25%	25%	25%	25%	25%

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

Net interest & other expenses	(3,909)	(4,211)	(4,391)	(4,696)	(4,982)	(5,082)
% of Revenue	5%	5%	5%	5%	5%	5%

Tax expense	(1,306)	(1,643)	(1,713)	(1,832)	(1,944)	(1,983)
Tax rate	26%	30%	30%	30%	30%	30%

Net profit	3,796	3,853	4,018	4,297	4,559	4,650
% Margin	5%	5%	5%	5%	5%	5%