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Mercari Inc

Watchlist Manager
Mercari Inc
Price: 2 807.5 JPY -0.78% Market Closed
Updated: Dec 4, 2023

DCF Value

This DCF valuation model was created by Alpha Spread and was last updated on Dec 2, 2023.

Estimated DCF Value of one 4385 stock is 3 625.04 JPY. Compared to the current market price of 2 807.5 JPY, the stock is Undervalued by 23%.

DCF Value
Base Case
3 625.04 JPY
Undervaluation 23%
DCF Value
Worst Case
Base Case
Best Case
3 625.04
DCF Value
Worst Case
Base Case
Best Case
DCF Value: 3 625.04 JPY
Mercari Inc Competitors:
DCF Valuation
Demae-can Co Ltd
Scroll Corp
Vega Corporation Co Ltd
Senshukai Co Ltd
Aucnet Inc
Crooz Inc
CrowdWorks Inc

Valuation Analysis

DCF Financials
Financials used in DCF Calculation

193B 281B
Net Income
12.5B 29.2B
9.3B 27.8B

Sensitivity Analysis
DCF Value Sensitivity Analysis

Present Value Calculation

The first step in the DCF calculation process is to estimate the company's future free cash flow. Once free cash flow is forecasted, it is discounted at a risk-appropriate discount rate. The resulting value is the present value of the company's free cash flow. You can change any model inputs below.

Available Valuation Models
1 valuation model available
Alpha Spread
Updated on Dec 2, 2023
Default Valuation
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Model Settings
Discount Rate
Forecast Period
5 Years
Terminal Growth
Discount Rate
Terminal Growth
Growth Period
5 Years
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DCF Model
Base Case Scenario

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DCF Model

To view the process of deriving the DCF Value of one share from the estimated Present Value, see the DCF Value Calculation block.

DCF Value Calculation

Depending on which type of operating model is chosen (equity or whole firm valuation model), the resulting value is either the value of equity or the value of the entire firm. In the case of the latter, to move from the value of the firm to the value of equity, liabilities are subtracted and assets are added.

Capital Structure
From Present Value to DCF Value

Present Value 591B JPY
Equity Value 591B JPY
/ Shares Outstanding 163m
4385 DCF Value 3 625.04 JPY
Undervalued by 23%

To view the process of calculating the Present Value of Mercari Inc' future free cash flow, see the Present Value Calculation block.

See Also

Discover More

What is the DCF value of one 4385 stock?

Estimated DCF Value of one 4385 stock is 3 625.04 JPY. Compared to the current market price of 2 807.5 JPY, the stock is Undervalued by 23%.

The true DCF Value lies somewhere between the worst-case and best-case scenario values. This is because the future is not predetermined, and the stock's DCF Value is based almost entirely on the future of the company. Knowing the full range of possible stock DCF values gives a complete picture of the investment risks and opportunities.

How was the DCF Value calculated?

1. Present Value Calculation. Using the DCF Operating Model we project Mercari Inc's future free cash flow and discount it at a selected discount rate to calculate its Present Value (591B JPY).

2. DCF Value Calculation. We use the company's capital structure to calculate the total Equity Value based on the previously computed Present Value of the free cash flow. Dividing the Equity Value by the number of shares outstanding gives us the DCF Value of 3 625.04 JPY per one 4385 share.