Loading verified market, valuation, and statement data.
1. Industry Fundamentals
1.1 Cyclicality
The company operates in a cyclical industry sensitive to macroeconomic conditions.
Revenue and earnings tend to correlate with broader economic cycles, with periods of expansion driving growth and contractions creating headwinds.
1.2 Competition
The industry is moderately competitive with established players and meaningful barriers to entry. Beta of N/A suggests moderate market sensitivity. Competitive advantages stem from brand, scale, or regulatory moats.
1.3 Technology
Key technology drivers include digital transformation, operational efficiency, automation. Companies that invest in R&D and adopt new technologies tend to gain market share. The pace of technological change creates both opportunities for innovation and risks of disruption.
2. Company Fundamentals
2.1 Competitiveness
| Metric | Value |
|---|
| Free Float | 23.23B |
| Short Int % Utilisation | 1.29% |
2.2 Growth
| Metric | Value |
|---|
| EV/EBITDA | 29.00 |
2.3 Management
| Role | Metric |
|---|
| Consensus Rating | N/A |
2.4 Return
| Metric | Value |
|---|
| Expected Return (Ann.)* | 33.92% |
| Risk / Std Dev (Ann.)* | 36.88% |
| 1-Year Price Return* | 24.94% |
Latest Market Data (as of 2026-08-14, US Eastern time):
| Metric | Value |
|---|
| Last Price | $225.16 |
| 52-Week Range | $164.07 – $236.54 |
| Observation Count | 251 trading days |
The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.
DuPont Model Analysis
The DuPont model decomposes return on equity (ROE) into three operating and capital-structure drivers:
ROE = Net Margin × Asset Turnover × Equity Multiplier
The comparison uses the latest two comparable annual periods available for the issuer, with reported statement amounts shown in US$. Revenue and net income are income-statement flows; total assets and shareholders’ equity are year-end balance-sheet figures. This is a simplified year-end-balance DuPont comparison rather than an average-balance ROE calculation.
| DuPont component | Calculation | FY2026 | FY2025 |
|---|
| Revenue | Reported revenue | $215.94B | $130.50B |
| Net income | Reported net income | $120.07B | $72.88B |
| Total assets | Year-end reported balance | $206.80B | $111.60B |
| Shareholders’ equity | Year-end reported balance | $157.29B | $79.33B |
| Net margin | Net income ÷ revenue | 55.60% | 55.85% |
| Asset turnover | Revenue ÷ total assets | 1.0442x | 1.1693x |
| Equity multiplier | Total assets ÷ shareholders’ equity | 1.3148x | 1.4068x |
| ROE | Net margin × asset turnover × equity multiplier | 76.33% | 91.87% |
Source: Yahoo Finance annual statements. Values are based on the two latest comparable annual periods returned by the source; fiscal period labels use the statement period-end year.
2.5 FCFF DCF Valuation
Valuation basis: This research model follows a five-year, unlevered FCFF DCF. It starts from reported annual operating inputs, forecasts revenue and operating cash conversion under an explicit mechanical policy, discounts FCFF at WACC, applies a Gordon-growth terminal value, and bridges enterprise value to an indicative common-equity value per share. It is an analytical estimate rather than a recommendation or personalised target price.
Step 1 — Forecast Operating Profit and NOPAT
| Reported operating input | Value |
|---|
| Revenue | $215.94B |
| Prior annual revenue | $130.50B |
| EBIT | $141.71B |
| Tax rate | 15.12% |
| NOPAT = EBIT × (1 − tax rate) | $120.29B |
| Forecast start-growth basis | 15.00% |
| Forecast policy | latest reported annual revenue growth, bounded to -10.00% / 15.00% |
Step 2 — Calculate FCFF
| Current FCFF building block | Value |
|---|
| NOPAT | $120.29B |
| Add: depreciation & amortisation | $2.84B |
| Less: capital expenditure | -$6.04B |
| Less/(add): working-capital cash-flow movement | -$15.95B |
| Current unlevered FCFF | $101.14B |
Explicit FCFF forecast
| Forecast year | Revenue growth | NOPAT | D&A | Capex | Change in NWC | FCFF | Present value |
|---|
| 1 | 15.00% | $138.33B | $3.27B | -$6.95B | -$18.34B | $116.31B | $107.59B |
| 2 | 11.88% | $154.76B | $3.66B | -$6.74B | -$20.52B | $131.15B | $103.81B |
| 3 | 8.75% | $168.30B | $3.98B | -$6.22B | -$22.31B | $143.74B | $97.36B |
| 4 | 5.62% | $177.76B | $4.20B | -$5.38B | -$23.57B | $153.01B | $88.68B |
| 5 | 2.50% | $182.21B | $4.31B | -$4.31B | -$24.16B | $158.05B | $78.38B |
Step 3 — Determine the Discount Rate (WACC)
| WACC input | Value |
|---|
| Risk-free rate | 4.71% |
| Equity risk premium assumption | 5.50% |
| Beta | 2.21 |
| Cost of equity | 16.89% |
| Pre-tax cost of debt | 2.46% |
| WACC | 16.86% |
| WACC validation | requires assumption review |
Step 4 — Estimate Terminal Value
| Terminal-value input | Value |
|---|
| Perpetuity growth rate | 2.50% |
| Terminal value | $1,127.83B |
| Implied terminal EV / EBITDA | 5.15x |
| Terminal value as % of enterprise value | 52.09% |
Step 5 — Discount Cash Flows to Enterprise Value
| Enterprise-value component | Value |
|---|
| Present value of explicit FCFF | $475.83B |
| Present value of terminal value | $517.42B |
| Indicated enterprise value | $993.25B |
| Discounting convention | mid-year for explicit FCFF; terminal value discounted at year-end five |
Step 6 — Convert Enterprise Value to Equity Value
| Equity bridge | Value |
|---|
| Indicated enterprise value | $993.25B |
| Less: gross interest-bearing debt | $11.04B |
| Add: cash and equivalents | $62.56B |
| Add: affiliate investments | $0.00 |
| Less: minority interests | $0.00 |
| Indicated common equity value | $1,044.77B |
Step 7 — Calculate Indicative Value Per Share
| Per-share output | Value |
|---|
| Shares used | 24,514,000,000.00 |
| Share-count basis | reported diluted weighted-average shares |
| Current market price | $220.41 |
| DCF indicative value per share | $42.62 |
| Indicative value vs. market price | -80.66% |
Model Integrity Checks
| Check | Result |
|---|
| Perpetuity growth is below the risk-free rate | pass |
| Perpetuity growth is below WACC | pass |
| WACC is within the configured operating-company range | review required |
| Terminal-year FCFF is positive | pass |
| Terminal capex converges to D&A | pass |
| Terminal-value concentration | within review band |
| Implied price differs from spot by more than 30% | review required |
2.6 Investor-Style Research Screen
| Educational screen | Result |
|---|
| Buffett-inspired cash-quality checks | 3/4 evidenced checks |
| Lynch-inspired balance-and-growth checks | 4/4 evidenced checks |
Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:44:07.997861 UTC; latest reported fiscal period: 2026-01-31 00:00:00. Default assumptions: five-year forecast, mid-year discounting for explicit FCFF, a maximum 2.50% perpetuity-growth rate below both WACC and the risk-free rate, historical operating-ratio persistence, and capex convergence to D&A by year five. No sell-side consensus or management guidance is substituted for reported inputs. This is research and analysis only, not personalized financial advice.
2.7 Quantitative Factor Diagnostics
Model basis: Daily issuer USD excess returns are regressed in-sample using ordinary least squares on matching regional Fama–French factors. FF3 estimates market, size, and value loadings; FF5 adds profitability and investment. Coefficients are descriptive historical exposures, not predictions.
| Estimation input | Value |
|---|
| Regional factor set | US |
| Factor-return currency | USD |
| Issuer-return basis | USD adjusted total return |
| Estimation window | 2025-08-19 to 2026-06-30 |
| Aligned daily observations | 217 |
| Minimum observation requirement | 120 |
| Currency conversion for HK listings | not required |
Fama–French Three-Factor and Five-Factor Results
| Diagnostic | FF3 | FF5 |
|---|
| Annualised alpha | 3.51% | -2.00% |
| Adjusted R² | 0.52 | 0.61 |
| Annualised residual volatility | 25.19% | 22.79% |
| Factor loading (t-statistic) | FF3 | FF5 |
|---|
| Market excess return (Mkt-RF) | 1.77 (11.96) | 1.59 (10.29) |
| Size (SMB) | -0.85 (-4.22) | -0.40 (-2.04) |
| Value (HML) | -0.54 (-3.15) | 0.18 (0.94) |
| Profitability (RMW) | NM | 0.27 (1.67) |
| Investment (CMA) | NM | -1.94 (-6.84) |
Definitions: Mkt-RF is the market return less the risk-free rate; SMB is small minus big; HML is high minus low book-to-market; RMW is robust minus weak profitability; CMA is conservative minus aggressive investment. Factor returns are sourced from the Kenneth R. French Data Library; issuer adjusted-return history is sourced from Yahoo Finance. For Hong Kong listings, adjusted HKD prices are converted into USD with daily USD/HKD closes before return calculation to match the USD regional factor basis. This is an in-sample historical regression; coefficients and t-statistics do not establish causation or predict future returns. This is research and analysis only, not personalized financial advice.