Japan Tobacco Inc., a tobacco company, manufactures and sells tobacco products, prescription drugs, and processed foods in Japan and internationally. The company operates through four segments: Domestic Tobacco, International Tobacco, Pharmaceutical, and Processed Food. It offers tobacco products, such as cigarettes, cigars, pipe tobacco, oral tobacco, waterpipe tobacco, kretek, and fine cut products under the Winston, Camel, MEVIUS, and LD brands. The company also provides reduced-risk products, including tobacco-infused vapor and heated tobacco products, E-Vapor products, etc. under the Ploom, Logic, Ploom TECH, Ploom TECH+, and Ploom S brands. In addition, it researches and develops, manufactures, and sells prescription drugs for the therapeutic areas, such as cardiovascular, renal and metabolism, immunology, and neuroscience. Further, the company provides staple food products, such as frozen noodles and okonomiyaki, and frozen and packed cooked rice; ambient processed foods; bakery products; and seasonings, including yeast extracts and oyster sauce. Japan Tobacco Inc. was founded in 1898 and is headquartered in Tokyo, Japan.

BUILD UP FREE CASH	2022-12-31 (A)	2023-12-31 (A)	2024-12-31 (A)	2025-12-31 (E)	2026-12-31 (E)	2027-12-31 (E)	2028-12-31 (E)	2029-12-31 (E)
Revenue	2,657,832	2,841,077	3,149,759	3,415,318.1	3,612,502.2	3,775,744.5	3,775,744.5	3,775,744.5
Revenue % Chg.	14.3%	6.9%	10.9%
EBIT	636,662	645,126	301,723	827,221	899,392.9	969,190.2	969,190.2	969,190.2
EBIT Margin	24%	22.7%	9.6%
Tax Rate	25.2%	21.9%	21.9%
NOPAT	476,516	503,676.3	235,676.7	618,264.9	683,538.6	739,492.1	739,492.1	739,492.1
NOPAT Margin	17.9%	17.7%	7.5%	18.1%	18.9%	19.6%	19.6%	19.6%
D&A	199,651	179,652	179,837	178,853.5	177,609.5	176,927	176,927	176,927
D&A / Revenue	7.5%	6.3%	5.7%
Capex	-81,411	-94,861	-127,769	-166,471.1	-164,948.9	-164,240.4	-164,240.4	-164,240.4
Capex / Revenue	-3.1%	-3.3%	-4.1%
Chg. NWC	-131,648	-64,365	375,678	53,603.1	56,697.9	59,260	59,260	59,260
Chg. NWC / Revenue	-5%	-2.3%	11.9%
Unlevered FCF (UFCF)	463,108	524,102.3	663,422.7	684,250.5	752,897.1	811,438.7	811,438.7	811,438.7
UFCF % Chg.	-8.8%	13.2%	26.6%	3.1%	10%	7.8%	—	—
PV of UFCF	—	—	—	623,850	625,843.5	614,965.7	560,681.2	511,188.4
Sum of PV of UFCF	—	—	—	623,850	1,249,693.6	1,864,659.3	2,425,340.4	2,936,528.9

Cost of Debt
Tax Rate
After Tax Cost of Debt	2.3%
Risk Free Rate
Market Risk Premium
Beta	1
Cost of Equity	9.7%
Total Debt	1,726,789
Market Cap	1,588,649,060.8
Total Capital	1,590,375,849.8
Debt Weighting	0.1%
Equity Weighting	99.9%
WACC	9.7%

Exit Multiple EV/FCF
Terminal Value	1,746,710,317.1
PV of Terminal Value	1,003,254,854
Cumulative PV of UFCF	2,936,528.9
Net Debt	992,763
Equity Value	1,005,198,619.9
Shares Outstanding	1,775.4
Implied Share Price	566,185.4
Current Share Price	2,867.9
Implied Upside / (Downside)	19,641.8%