Canon Inc.
AI Valuation
AI-generated fair value estimate for this company.
AI Fair Value
$43.80
Market Price
$29.94
Undervalued By
31.6%
Method: 10-year unlevered FCF DCF (JPY, converted to USD at 157.67 JPY/USD): FY2024 free cash flow of ¥369,830M used as normalized base; 3% annual FCF growth years 1-5, 2% years 6-10; 8% discount rate; 1.5% terminal growth; ¥395,000M net debt subtracted; 850.3M shares outstanding; 1:1 assumed ratio between OTC ordinary share quotation and underlying TSE common share.
Reasoning: Canon is a mature, diversified imaging/industrial equipment manufacturer with stable, predictable free cash flow, making a long-horizon FCF DCF the most defensible intrinsic-value method; modest growth and discount-rate assumptions reflect its low-growth but highly cash-generative profile.