Advantest Corporation manufactures and sells semiconductor and component test system products and mechatronics-related products. It operates through three segments: Semiconductor and Component Test System; Mechatronics System; and Services, Support and Others. The Semiconductor and Component Test System segment provides customers with test system products for the semiconductor industry and the electronic parts industry. This segment offers test systems for SoC semiconductor devices; and test systems for memory semiconductors devices. The Mechatronics System segment provides test handlers; mechatronic-applied products for handling semiconductor devices; and device interfaces, which serve as interfaces with the devices that are measured. This segment also engages in the operations related to nano-technology products. The Services, Support and Others segment provides customer solutions for the semiconductor and component test system and mechatronics system segments; and support services. This segment is also involved in the sale of consumables and used products; and equipment lease business and others. In addition, the company engages in the research and development activities measuring and testing technologies. Advantest Corporation serves fabless semiconductor companies, foundries, and test houses, as well as industrial, design, and manufacturing companies in Japan, rest of Asia, the United States, and Europe. Advantest Corporation has collaboration with STMicroelectronics on advanced automated test cell for IC Testing; and partnership with PDF Solutions Inc. for cloud-based software solutions. The company was founded in 1954 and is headquartered in Tokyo, Japan.

BUILD UP FREE CASH	2023-03-31 (A)	2024-03-31 (A)	2025-03-31 (A)	2026-03-31 (E)	2027-03-31 (E)	2028-03-31 (E)	2029-03-31 (E)	2030-03-31 (E)
Revenue	560,191	486,507	779,707	940,924.5	1,089,001.2	1,213,892.2	1,213,892.2	1,213,892.2
Revenue % Chg.	34.4%	-13.2%	60.3%
EBIT	167,687	90,626	249,554	370,790	445,072.5	492,289.3	492,289.3	492,289.3
EBIT Margin	29.9%	18.6%	32%
Tax Rate	23.9%	20.3%	28.3%
NOPAT	127,672	72,215.7	178,945.9	277,128.5	333,626.3	369,020	369,020	369,020
NOPAT Margin	22.8%	14.8%	23%	29.5%	30.6%	30.4%	30.4%	30.4%
D&A	21,396	26,104	27,075	27,321.7	28,036.6	28,737.1	28,737.1	28,737.1
D&A / Revenue	3.8%	5.4%	3.5%
Capex	-22,535	-19,592	-17,414	-32,103.9	-28,119.4	-27,097.7	-27,097.7	-27,097.7
Capex / Revenue	-4%	-4%	-2.2%
Chg. NWC	-82,142	-33,517	26,586	-56,903.3	-65,858.4	-73,411.3	-73,411.3	-73,411.3
Chg. NWC / Revenue	-14.7%	-6.9%	3.4%
Unlevered FCF (UFCF)	44,391	45,210.7	215,192.9	215,442.9	267,685.1	297,248.1	297,248.1	297,248.1
UFCF % Chg.	-3.6%	1.8%	376%	0.1%	24.2%	11%	—	—
PV of UFCF	—	—	—	196,266.5	222,153.1	224,730.1	204,727	186,504.4
Sum of PV of UFCF	—	—	—	196,266.5	418,419.6	643,149.7	847,876.7	1,034,381.1

Cost of Debt
Tax Rate
After Tax Cost of Debt	2%
Risk Free Rate
Market Risk Premium
Beta	1
Cost of Equity	9.8%
Total Debt	93,503
Market Cap	14,656,952.3
Total Capital	14,750,455.3
Debt Weighting	0.6%
Equity Weighting	99.4%
WACC	9.8%

Exit Multiple EV/FCF
Terminal Value	14,449,894.3
PV of Terminal Value	8,259,405.1
Cumulative PV of UFCF	1,034,381.1
Net Debt	-207,058
Equity Value	9,500,844.2
Shares Outstanding	727.4
Implied Share Price	13,061.5
Current Share Price	20,150
Implied Upside / (Downside)	-35.2%