Nissan Chemical

DCF against the market -20.8% (tolerance 15.0%). the steady state after FY2032 (Continuing value: terminal growth 1.9 per cent, new capital earning the RONIC of 15 per cent, at the WACC of 7.97 per cent): the DCF's equity value over the market capitalisation, less one. Beyond the tolerance, about 21 per cent below: 811 thousand million at the snapshot against the market's 1,024. The cause is the steady state after FY2032 at the model's cost of capital: 78 per cent of the DCF's enterprise value is its continuing value (NOPAT growing at the GDP's 1.9 per cent a year, new capital earning a RONIC of 15 per cent, a WACC of 7.97 on the market-average cost of equity, 2.817 plus Japan's 5.14 per cent premium). The bridge is not the cause: it adds 27 thousand million for the shares held outside the oper

Residual income against the market -17.9% (tolerance 15.0%). the residual income's steady state after FY2032 (RI continuing value: FY2032's residual operating income growing at the long-run nominal GDP growth of 1.9 per cent, at the WACC of 7.97 per cent): the residual-income equity value over the market capitalisation, less one. Beyond the tolerance, about 18 per cent below: 840 thousand million at the snapshot against the market's 1,024. The cause is the residual income's steady state at the model's cost of capital: 55 per cent of its operations value is the continuing value, FY2032's residual operating income of about 40 thousand million growing at the long-run nominal GDP growth of 1.9 per cent at a WACC of 7.97; the bridge adds the same 27 thousand million for the shares held outside the operations as the DCF's. What closes it: at the model