Nichirei

DCF to market gap -50.7% (tolerance 15.0%). The cost of capital: At the yardstick's beta of 1 (cost of equity 7.96 per cent, WACC 6.58) the DCF's equity value at the snapshot is 265.4 billion yen against a market capitalisation of 538.5 billion, 50.7 per cent below. With the forecasts held, a beta of 0.54 (cost of equity 5.59 per cent, WACC 4.69) closes the gap, the DCF's equity value rising to 536.2 billion, 0.4 per cent below the market: a WACC near the 4.70 per cent the market's enterprise value implies at the model's g and RONIC (the steady-state reading) and the 4.5 per cent the company itself states (May 2026 deck p47). Beside the record: revenue grew

Residual income to market gap -50.3% (tolerance 15.0%). The cost of capital against the forecast's returns: At the yardstick's WACC of 6.58 per cent, above the forecast's ROIC (6.5 per cent in FY2027, 6.3 by FY2031), residual operating income is negative in every forecast year (-1.25 billion yen in FY2031), so the residual-income equity value is 267.8 billion yen, 50.3 per cent below the market capitalisation of 538.5 billion, and no growth of residual income after the horizon reaches the market's value: the market prices in a higher return than the forecast's or a lower cost of capital. With the forecasts held, the same beta of 0.54 (WACC 4.69 per cent) closes it, the residual-income equity value r