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7974.T · Intrinsic value

Is Nintendo Co., Ltd. (7974.T) overvalued or undervalued?

Nintendo Co., Ltd. (7974.T) trades at the delayed market price of ¥8,541.00 a share. That price already implies revenue growth of 15.8% a year for 5 years. TickerWorth's fair value is ¥6,255.60 a share (37% above fair value), as of Oct 19, 2026. It is a model estimate, and every input behind it is sourced below.

Model by · generated from market data · Updated Oct 19, 2026 · How these pages are made

Is 7974.T overvalued?

Fair value
¥6,255.60
Market price
¥8,541.00
Downside to fair value
26.8%
Verdict
37% above fair value
Price as of · Prices are delayed.
Fair value against the delayed market price: 37% above fair value.

Reverse DCF: Today's price implies revenue growth of 15.8% a year for 5 years; our model assumes −2.9% a year on average over the same horizon.

What is 7974.T's TickerWorth Score?

C53/100

Middle of the pack — real strengths and real weaknesses

Compared with Communication Services companies in Japan

Its strongest point: strong balance sheet. Its weakest: looks expensive on the numbers.

  • Value · 34 of 100

    Cheaper than 34% of Communication Services companies worldwide

  • Price vs worth · 29 of 100
  • Quality · 78 of 100

    More profitable than 78% of Communication Services companies worldwide

  • Financial health · 98 of 100

    Financially stronger than 98% of Communication Services companies worldwide

  • Growth · 33 of 100

    Growing faster than 33% of Communication Services companies worldwide

  • Momentum · 52 of 100

    Outperformed 52% of Communication Services companies worldwide over the past year

Confidence: High confidence · Scored

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7974.T DCF valuation: what the price assumes

At a recent price of ¥8,541, Nintendo Co., Ltd. (7974.T) trades 37% above TickerWorth's blended fair value of ¥6,256 per share — a discounted-cash-flow model cross-checked against peer multiples and asset value — meaning the market currently prices 7974.T overvalued vs our estimate of what the business is intrinsically worth. Our fair value sits below the market, an implied -26.8% 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 7974.T at about ¥4,597 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 Nintendo Co., Ltd.'s projected free cash flows at a weighted-average cost of capital (WACC) of 10.4%, with a long-run terminal growth rate of 2.5%. About 68% 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 15.8% annual revenue growth for 7974.T. Our base case instead compounds to about -2.9% 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, 7974.T's modeled DCF value ranges from about ¥3,976 to ¥5,789 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 Nintendo Co., Ltd. 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 7974.T's intrinsic value. Figures update as new filings and prices come in.

Every input behind 7974.T's DCF

InputValue
Base-year revenueLive feed — totalRevenue (TTM)¥2,258,501,110,000
Base EBIT marginComputed — reported operating margin exceeded the EBITDA margin (impossible); held to 18.4% so D&A stays positive18.4%
Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast-10% → -6% → -3% → 1% → 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)1.10
Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC2.5%
Diluted sharesLive feed — sharesOutstanding1,153M
Market priceDelayed quote · as of 2026-10-19 17:02 UTC¥8,541

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What does Nintendo Co., Ltd. do?

What does it do?

Nintendo Co., Ltd., together with its subsidiaries, develops, manufactures, and sells home entertainment products in Japan, the Americas, Europe, and internationally. It offers home console gaming hardware, software, accessories, and other products. It operates in the Electronic Gaming & Multimedia industry (Communication Services sector), headquartered in Japan. The company employs roughly 8,666 people.

How does it make money?

The business turns 2.3T in annual revenue into profit. Out of every $100 of sales, about $28 is left as operating profit (operating margin of 27.5%), after a 0% gross margin on the products/services it sells. After all costs, taxes and interest, 0.0% of revenue becomes bottom-line net profit.

Is it financially healthy?

Financially it looks solid: comfortably covers its short-term bills (3.7× current ratio), and is currently lossmaking.

7974.T insider trading

Insider filings are available for US-listed companies only.

Common questions

  • What is 7974.T's intrinsic value?

    TickerWorth's blended fair value for Nintendo Co., Ltd. (7974.T) is ¥6,256 per share, versus a market price of ¥8,541 (37% above fair value).

  • Is 7974.T overvalued or undervalued?

    On our blended fair value 7974.T looks overvalued vs fair value at ¥8,541. This is an educational estimate, not advice.

  • What discount rate is used for 7974.T?

    A WACC of 10.4% and a terminal growth rate of 2.5%.

  • Is Nintendo stock undervalued?

    TickerWorth's fair value for Nintendo Co., Ltd. (7974.T) is ¥6,255.60 against a market price of ¥8,541.00. Our read: 37% above fair value. This is a model estimate, not investment advice.

  • Nintendo (7974.T) DCF valuation and fair value

    Our fair value for Nintendo Co., Ltd. (7974.T) is ¥6,255.60, built on a 10.4% 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 Nintendo stock?

    Today's price implies revenue growth of 15.8% a year for 5 years; our model assumes −2.9% 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 ¥8,541.00. A model estimate, not investment advice.

  • Nintendo (7974.T) insider trading

    We have no recent SEC Form 4 insider filings on file for Nintendo Co., Ltd. (7974.T). Form 4 covers US-listed companies only.

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.