Am I missing something on SONY?


I am invested in SONY so my opinion is kind of biased. Nevertheless I want to ask you if I did something wrong or if I am missing something.

When I run my DCF-Analysis SONY must be growing with 3% when discounted with 8% to be valued at current levels.

Is SONY grossly undervalued or am I missing something:

The numbers I used are ($):

FCF of 7,273B

Average FCF Growth rate: 3%

Discount ratE: 8%

Perpetual Growth Rate: 3%

Cash on hand: -8,04B

If I run the Numbers with 5 Year Growth and then perpetual growth I end up with approximately the market price today.

I think, with PS5 and many more things to come 3% is hugely underestimated. Putting in higher numbers cause an even greater undervaluation.

I don't want to shitpost here. My honest question would be if I overlook something in the valuation.

Thank you guys!

Thank you guys for your input. I guess the Nikkei average PE oh 15 is much lower than the American market. This, stiff competition and intransparent numbers (also because Sony is a conglomerate) might interfere with the valuation.

Thanks and have a nice day! 🙂


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