3293.TWO
INTERNATIONAL GAMES SYSTEM COClosed3293.TWO discounted cash flow valuation
3293.TWO Fair Value
Reverse DCF: today's price implies -4.7% a year of FCF growth for years 1–5, against 14.8% in this model.
Model: 14.8% from analyst next-year EPS & revenue growth. Fades linearly to terminal growth by year 10.
Model: 7.72% (CAPM, see the build-up).
Long-run growth after year 10; keep it at or below nominal GDP.
Value Bridge
| PV of free cash flow, years 1–10 | TWD 209.55B |
|---|---|
| PV of terminal value (67% of EV) | TWD 421.36B |
| Enterprise value | TWD 630.91B |
| + Cash & investments | TWD 25.37B |
| − Total debt | −TWD 3.80M |
| Equity value | TWD 656.27B |
| ÷ Shares outstanding | 281.80M |
| Value per share | TWD 2,328.84 |
| Market cap | TWD 228.54B |
Discount Rate Build-up
| Risk-free rate (10-yr Treasury) | 5.22% |
|---|---|
| Beta (clamped 0.5–2.5) | 0.50 |
| Equity risk premium | 5.00% |
| Cost of equity (CAPM) | 7.72% |
| Pre-tax cost of debt | 7.40% |
| Tax rate | 17.1% |
| Debt / (equity + debt) | 0.0% |
| WACC | 7.72% |
Cost of debt is interest expense ÷ total debt, held between the risk-free rate and 12%.
Free Cash Flow: History and Projection
Sensitivity: Value per Share
| WACC ↓ / g → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 5.72% | 3,060.16 | 3,398.92 | 3,842.80 | 4,449.78 | 5,330.07 |
| 6.72% | 2,448.96 | 2,652.91 | 2,905.13 | 3,225.10 | 3,644.35 |
| 7.72% | 2,036.20 | 2,169.75 | 2,328.84 | 2,521.59 | 2,759.96 |
| 8.72% | 1,739.31 | 1,831.97 | 1,939.50 | 2,065.79 | 2,216.23 |
| 9.72% | 1,515.92 | 1,583.00 | 1,659.34 | 1,747.02 | 1,848.76 |
Green is above today's price, red below (full colour at ±30%). The outlined centre cell is the current inputs.
Projected Cash Flows
| Year | Growth | Free cash flow | Discount factor | Present value |
|---|---|---|---|---|
| Base (TTM) | — | TWD 15.87B | — | — |
| Year 1 | 14.8% | TWD 18.22B | 0.928 | TWD 16.91B |
| Year 2 | 14.8% | TWD 20.91B | 0.862 | TWD 18.02B |
| Year 3 | 14.8% | TWD 24.01B | 0.800 | TWD 19.21B |
| Year 4 | 14.8% | TWD 27.56B | 0.743 | TWD 20.47B |
| Year 5 | 14.8% | TWD 31.64B | 0.689 | TWD 21.82B |
| Year 6 | 12.3% | TWD 35.55B | 0.640 | TWD 22.75B |
| Year 7 | 9.9% | TWD 39.06B | 0.594 | TWD 23.21B |
| Year 8 | 7.4% | TWD 41.96B | 0.552 | TWD 23.14B |
| Year 9 | 5.0% | TWD 44.04B | 0.512 | TWD 22.55B |
| Year 10 | 2.5% | TWD 45.14B | 0.475 | TWD 21.46B |
Method
Two-stage free-cash-flow model, the same as the bot's lgf dcf: five years at the chosen growth rate, a straight-line fade to terminal growth by year ten, then a Gordon-growth terminal value. Everything is discounted at WACC.
Base cash flow is the trailing four quarters of operating cash flow minus capital expenditure (the latest fiscal year when quarters are missing). Default growth uses analyst long-term growth when Yahoo publishes it, else the average of next year's EPS and revenue growth, else revenue CAGR, held between −5% and 25%.
A DCF is only as good as its inputs. The terminal value is usually most of the answer, so read the sensitivity grid before the headline number. This is a model, not investment advice.