6954.T · Intrinsic value
Is Fanuc Corporation (6954.T) overvalued or undervalued?
Fanuc Corporation (6954.T) trades at the delayed market price of ¥5,946.00 a share. That price already implies revenue growth of 19.8% a year for 5 years. TickerWorth's fair value is ¥3,339.51 a share (78% above fair value), as of Oct 19, 2026. It is a model estimate, and every input behind it is sourced below.
Model by Miraaj Patel · generated from market data · Updated Oct 19, 2026 · How these pages are made
Is 6954.T overvalued?
- Fair value
- ¥3,339.51
- Market price
- ¥5,946.00
- Downside to fair value
- 43.8%
- Verdict
- 78% above fair value
Reverse DCF: Today's price implies revenue growth of 19.8% a year for 5 years; our model assumes 10.7% a year on average over the same horizon.
What is 6954.T's TickerWorth Score?
Expensive vs our estimate — the business scores well
Compared with Industrials companies in Japan
Its strongest point: strong balance sheet. Its weakest: looks expensive on the numbers.
- Value · 11 of 100
Cheaper than 11% of Industrials companies in Japan
- Price vs worth · 15 of 100
- Quality · 76 of 100
More profitable than 76% of Industrials companies in Japan
- Financial health · 98 of 100
Financially stronger than 98% of Industrials companies in Japan
- Growth · 56 of 100
Growing faster than 56% of Industrials companies in Japan
- Momentum · 15 of 100
Outperformed 15% of Industrials companies in Japan over the past year
Confidence: High confidence · Scored
Get the Undervalued Company of the Week.
6954.T DCF valuation: what the price assumes
At a recent price of ¥5,946, Fanuc Corporation (6954.T) trades 78% above TickerWorth's blended fair value of ¥3,340 per share — a discounted-cash-flow model cross-checked against peer multiples and asset value — meaning the market currently prices 6954.T overvalued vs our estimate of what the business is intrinsically worth. Our fair value sits below the market, an implied -43.8% move to close the gap if the business performs in line with our assumptions. This is an educational model, not a price target or a recommendation — the value moves with the inputs, which you can test yourself using the WACC slider below.
Read the full reasoning
One of the lenses behind that blended figure is a discounted-cash-flow model, which on its own values 6954.T at about ¥4,494 per share. The rest of this page walks through that DCF — its assumptions, reverse-DCF and discount-rate sensitivity — because it is the auditable anchor of the blend.
The valuation discounts Fanuc Corporation's projected free cash flows at a weighted-average cost of capital (WACC) of 9.5%, with a long-run terminal growth rate of 2.5%. About 74% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly 19.8% annual revenue growth for 6954.T. Our base case instead compounds to about 10.7% a year over the same forecast, so the market is pricing in materially faster growth than our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, 6954.T's modeled DCF value ranges from about ¥3,596 to ¥6,374 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what Fanuc Corporation would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of 6954.T's intrinsic value. Figures update as new filings and prices come in.
Every input behind 6954.T's DCF
| Input | Value |
|---|---|
| Base-year revenueLive feed — totalRevenue (TTM) | ¥892,503,000,000 |
| Base EBIT marginComputed — trailing operatingMargins, held roughly flat | 23.2% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | 18% → 14% → 11% → 7% → 4% |
| Risk-free rateLive feed — US 10-year Treasury yield (^TNX) | 5.2% |
| BetaLive feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5) | 0.93 |
| Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC | 2.5% |
| Diluted sharesLive feed — sharesOutstanding | 929M |
| Market priceDelayed quote · as of 2026-10-19 17:02 UTC | ¥5,946 |
Change 6954.T's assumptions
The discount-rate dial and the editable model
ProChange growth, margin and WACC yourself — Pro (7-day free trial, card required).
What does Fanuc Corporation do?
What does it do?
Fanuc Corporation engages in the development, manufacture, sale, and maintenance services of products used in automated production systems in Japan, the United States, Europe, China, the rest of Asia, and internationally. It offers CNC series, robots, and robomachine products, such as, compact machining centers, electric injection molding machines, wire electrical discharge machines; and field system basic package, and AI servo monitors, as well as servo motors, lasers. It operates in the Specialty Industrial Machinery industry (Industrials sector), headquartered in Japan. The company employs roughly 10,040 people.
How does it make money?
The business turns 892.5B in annual revenue into profit. Out of every $100 of sales, about $23 is left as operating profit (operating margin of 23.2%), after a 38% gross margin on the products/services it sells. After all costs, taxes and interest, 20.1% of revenue becomes bottom-line net profit.
Is it financially healthy?
Financially it looks solid: comfortably covers its short-term bills (7.3× current ratio), and is currently profitable.
6954.T insider trading
Insider filings are available for US-listed companies only.
Common questions
What is 6954.T's intrinsic value?
TickerWorth's blended fair value for Fanuc Corporation (6954.T) is ¥3,340 per share, versus a market price of ¥5,946 (78% above fair value).
Is 6954.T overvalued or undervalued?
On our blended fair value 6954.T looks overvalued vs fair value at ¥5,946. This is an educational estimate, not advice.
What discount rate is used for 6954.T?
A WACC of 9.5% and a terminal growth rate of 2.5%.
Is Fanuc stock undervalued?
TickerWorth's fair value for Fanuc Corporation (6954.T) is ¥3,339.51 against a market price of ¥5,946.00. Our read: 78% above fair value. This is a model estimate, not investment advice.
Fanuc (6954.T) DCF valuation and fair value
Our fair value for Fanuc Corporation (6954.T) is ¥3,339.51, built on a 9.5% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into Fanuc stock?
Today's price implies revenue growth of 19.8% a year for 5 years; our model assumes 10.7% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of ¥5,946.00. A model estimate, not investment advice.
Fanuc (6954.T) insider trading
We have no recent SEC Form 4 insider filings on file for Fanuc Corporation (6954.T). Form 4 covers US-listed companies only.
Stocks below our fair value instead
Not investment advice. TickerWorth Score is a model output.
Educational tool. Every output reflects the assumptions shown — not a prediction and not investment advice. TickerWorth is not a licensed investment adviser, and these figures are estimates from public filings and market data that can be wrong.