Canon Inc.
AI Valuation
AI-generated fair value estimate for this company.
AI Fair Value
$43.80
Market Price
$29.42
Undervalued By
32.8%
Method: 10-year unlevered FCF DCF (JPY, converted to USD at 157.67 JPY/USD): FY2024 free cash flow of ¥369,830M normalized base; 3% growth years 1-5, 2% years 6-10; 8% discount rate; 1.5% terminal growth; ¥395,000M net debt subtracted; 850.3M shares outstanding; ADR assumed to represent one underlying TSE common share (1:1 ratio).
Reasoning: Same underlying business as Canon's other OTC-quoted share classes; DCF uses consolidated company-wide financials since the ADR represents a direct economic claim on the same cash flows, with no separate ADR-level adjustment needed beyond the depositary ratio.