Mitsubishi Heavy Industries, Ltd. manufactures and sells heavy machinery worldwide. The company operates through Energy Systems; Plants & Infrastructure Systems; Logistics, Thermal & Drive Systems; and Aircraft, Defense & Space segments. It offers thermal, renewable energy, nuclear, engine, nuclear power generation, and chemical power plants, lithium-ion battery products, and oil and gas production plants, as well as fuel cells; civil aircrafts and engines, aviation equipment, and maintenance, repair, and overhaul of aircrafts; and launch vehicles and services, rocket engines, reaction control systems, space stations, rocket launchers, rocket engine combustion test facilities, and electronic parts. The company also provides passenger and commercial ships, LNG and LPG carriers, special purpose vessels, and IT services and systems; marine machineries, boilers, turbines, engines, and structures; and intelligent transport systems products and solutions, such as electronic toll collection system, road user charging system, highway traffic management system, EV management system, and development system. In addition, it offers organic solvent exhaust gas treatment system, waste-to-energy system, sludge treatment system, air quality control system, and bio-treatment system; turbochargers, car air-conditioning and refrigeration systems, rubber and tire machinery, and testing equipment; forklift trucks; and printing, paper converting, and metals, and food & packaging machinery, pumps, compressors & mechanical turbines, hydraulic components. Further, the company provides gas holders, vibration control systems, water pipes, tunnel excavation machinery, and cybersecurity solutions for industrial control systems; special vehicles, naval ship & maritime systems, defense aircrafts, helicopters, defense aeroengines, and guided weapon systems; and CO2 capture plants, as well as provides after-sales services. The company was founded in 1884 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	4,202,797	4,657,147	5,027,176	5,169,119.7	5,635,681.6	6,098,042.6	6,098,042.6	6,098,042.6
Revenue % Chg.	8.9%	10.8%	7.9%
EBIT	180,314	262,752	330,974	421,986.1	529,560.6	614,345.7	614,345.7	614,345.7
EBIT Margin	4.3%	5.6%	6.6%
Tax Rate	23.4%	22.7%	30%
NOPAT	138,031.4	203,045.3	231,527.9	297,218.9	370,515.9	429,837.3	429,837.3	429,837.3
NOPAT Margin	3.3%	4.4%	4.6%	5.7%	6.6%	7%	7%	7%
D&A	148,549	155,899	160,643	160,364.1	166,931.1	169,383.2	169,383.2	169,383.2
D&A / Revenue	3.5%	3.3%	3.2%
Capex	-131,905	-160,486	-240,692	-197,633.4	-199,133.4	-201,258.4	-201,258.4	-201,258.4
Capex / Revenue	-3.1%	-3.4%	-4.8%
Chg. NWC	-166,916	-48,448	140,299	-38,269.2	-41,723.4	-45,146.4	-45,146.4	-45,146.4
Chg. NWC / Revenue	-4%	-1%	2.8%
Unlevered FCF (UFCF)	-12,240.6	150,010.3	291,777.9	221,680.4	296,590.3	352,815.7	352,815.7	352,815.7
UFCF % Chg.	-113%	-1,325.5%	94.5%	-24%	33.8%	19%	—	—
PV of UFCF	—	—	—	203,260.7	249,350	271,973.4	249,374.8	228,653.9
Sum of PV of UFCF	—	—	—	203,260.7	452,610.7	724,584.1	973,958.8	1,202,612.8

Cost of Debt
Tax Rate
After Tax Cost of Debt	1%
Risk Free Rate
Market Risk Premium
Beta	1
Cost of Equity	9.7%
Total Debt	1,131,274
Market Cap	13,601,748
Total Capital	14,733,022
Debt Weighting	7.7%
Equity Weighting	92.3%
WACC	9.1%

Exit Multiple EV/FCF
Terminal Value	13,996,303
PV of Terminal Value	8,317,068.3
Cumulative PV of UFCF	1,202,612.8
Net Debt	273,550
Equity Value	9,246,131.1
Shares Outstanding	3,360.1
Implied Share Price	2,751.7
Current Share Price	4,048
Implied Upside / (Downside)	-32%