Advantest

DCF against the market -54.1% (tolerance 15.0%). the steady state after FY2035: the core operating margin fading to the five actual years' through-cycle level (Through-cycle margins, Fade drivers) and growth at Japan's long-run nominal GDP growth (M: the gap, about -54 per cent, sits in the steady state: the model fades the core operating margin from FY2032's 54 per cent to the five actual years' through-cycle 33 per cent by FY2035 and grows the business at 1.9 per cent after it; at the model's WACC of 8.0 per cent the market prices in residual operating income growing about 6.1 per cent a year forever after FY2035 (Market-implied growth), or, read as a steady state from FY2028, a WACC of about 4.9 per cent (Market-implied WACC); either closes the gap. Revenue grew about 28 per cent a year from FY2022 to FY2026 (416.9 to 1,128.6 billion ye

Residual income against the market -53.9% (tolerance 15.0%). the same steady state: residual operating income after FY2035 growing at Japan's long-run nominal GDP growth (Market inputs.Long-run nominal GDP growth) on margins faded to the through-cycle level: the gap, about -54 per cent, has the DCF's cause: the residual income stands on the same forecasts and invested capital, so the market's 6.1 per cent growth of residual operating income after FY2035 against the model's 1.9 (Market-implied growth), or a 4.9 per cent WACC in steady state (Market-implied WACC), closes it; the two methods differ by 0.4 per cent, their continuing values' steady states