Equity valuation Casio Computer

Abstract

This dissertation aims to determine the fair value of the Japanese company 'Casio Computer Co' as of 30/04/2024 using the Discounted Cash Flow methodology and Relative valuation. The analysis begins with an overview of the company and the markets in which it operates, as well as a macroeconomic outlook. Currently, the company is experiencing a decline in sales and profits across all four of its business lines: TimePieces, EdTech, Sound, and System Equipment. To address this, the management is implementing reforms through a 7-year plan aimed at adapting the company to evolving customer demands. The equity valuation results in an intrinsic price per share of ¥1.364,17. The comparison with the market price at the day's close of ¥1.318,00 indicates that Casio is undervalued by 3,5%. As such, a ‘Hold’ recommendation is issued. Compared to the equity research published by Morningstar, which suggests a fair share price of ¥1.500,00, the own analysis utilizes more conservative assumptions and results in a lower price.

Date of Award	25 Jun 2024
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	José Carlos Tudela Martins (Supervisor)