McDonald's Holdings Company (Japan)

DCF against the market -55.5% (tolerance 15.0%). Valuation / WACC / WACC (8.40 per cent at beta 1) against Valuation / Market inputs / Terminal growth (1.9 per cent): the steady state after the horizon: the DCF's equity value over the market capitalisation, less one: -55.5 per cent, beyond the tolerance (514 against 1,155 billion yen at 30 October 2026). The cause is the cost of capital against the long-run growth, the continuing value holding 84.5 per cent of the enterprise value (WACC 8.40 per cent at beta 1, g 1.9 per cent, RONIC 13.0 per cent). Keeping the forecasts, the market's enterprise value at the valuation date, 1,092 billion yen against the DCF's 442 billion, needs a WACC of 4.91 per cent in the steady-state reading (the market-implied WACC, against the model's 8.40), or, at the m

Residual income against the market -55.0% (tolerance 15.0%). Valuation / RI continuing value / RI continuing value: FY2031's residual operating income growing at Valuation / Market inputs / Long-run nominal GDP growth (1.9 per cent), capitalised at Valuation /: the residual-income equity value over the market capitalisation, less one: -55.0 per cent, beyond the tolerance (520 against 1,155 billion yen at 30 October 2026). The cause is the steady state after FY2031 at the model's WACC: residual income takes FY2031's residual operating income, 14.7 billion yen, growing at the 1.9 per cent GDP growth; at the model's WACC of 8.40 per cent the market prices it growing at 7.08 per cent a year (the market-implied growth), which closes the gap, as a WACC of 4.91 per cent in the steady-state reading does; the Upside case, every driver at its bull value, gives