Editing Sony Group Corporation (section)

=== Valuation ===
{| class="wikitable"
!''¥ Millions''
! colspan="9" |''Historical''
! colspan="5" |''Projected''
|-
!Income Statement
!2015
!2016
!2017
!2018
!2019
!2020
!2021
!2022
!2023
!2024 E
!2025 E
!2026 E
!2027 E
!2028 E
|-
|Revenue
|8,215,880
|8,105,712
|7,603,250
|8,543,982
|8,665,687
|8,259,885
|8,998,661
|9,921,513
|11,539,837
|11,918,278
|12,255,285
|12,523,226
|12,613,100
|13,095,767
|-
|% growth
|
|(1.34%)
|(6.20%)
|12.37%
|1.42%
|(4.68%)
|8.94%
|10.26%
|16.31%
|3.28%
|2.83%
|2.19%
|0.72%
|3.83%
|-
|EBIT
|298,764
|365,886
|440,393
|739,983
|849,433
|851,987
|956,958
|1,112,396
|1,179,022
|1,256,070
|1,395,280
|1,488,430
|1,599,940
|1,730,733
|-
|% of sales
|3.64%
|4.51%
|5.79%
|8.66%
|9.80%
|10.31%
|10.63%
|11.21%
|10.22%
|10.54%
|11.39%
|11.89%
|12.68%
|13.22%
|-
|Taxes
|88,733
|94,789
|124,058
|151,770
|45,098
|177,190
|(45931)
|229,097
|236,691
|288,896
|320,914
|342,339
|367,986
|398,069
|-
|% of EBIT
|29.70%
|25.91%
|28.17%
|20.51%
|5.31%
|20.80%
|(4.80%)
|20.59%
|20.08%
|23.00%
|23.00%
|23.00%
|23.00%
|23.00%
|-
|EBIAT
|
|
|
|
|
|
|
|
|
|967,174
|1,074,366
|1,146,091
|1,231,954
|1,332,665
|-
!Cash Flow Items
!2015
!2016
!2017
!2018
!2019
!2020
!2021
!2022
!2023
!2024 E
!2025 E
!2026 E
!2027 E
!2028 E
|-
|D&A
|354,624
|397,091
|327,048
|361,444
|374,026
|416,642
|687,373
|835,233
|1,004,590
|811,319
|839,193
|826,777
|845,961
|890,656
|-
|%  of sales
|4.32%
|4.90%
|4.30%
|4.23%
|4.32%
|5.04%
|7.64%
|8.42%
|8.71%
|6.81%
|6.85%
|6.60%
|6.71%
|6.80%
|-
|CapEx
|(215916)
|(375411)
|(333509)
|(262989)
|(312644)
|(439761)
|(477931)
|(441096)
|(613635)
|638,704
|656,832
|670,751
|681,903
|730,158
|-
|%  of sales
|(2.63%)
|(4.63%)
|(4.39%)
|(3.08%)
|(3.61%)
|(5.32%)
|(5.31%)
|(4.45%)
|(5.32%)
|5.36%
|5.36%
|5.36%
|5.41%
|5.58%
|-
|Change  in NWC
|(1201872)
|(15040)
|(132444)
|(126476)
|1,483,159
|422,805
|(1941143)
|283,028
|83,527
|1,072,645
|1,102,976
|1,127,090
|1,135,179
|1,178,619
|-
|%  of sales
|(14.63%)
|(0.19%)
|(1.74%)
|(1.48%)
|17.12%
|5.12%
|(21.57%)
|2.85%
|0.72%
|9.00%
|9.00%
|9.00%
|9.00%
|9.00%
|-
!Free Cash Flow
|
|
|
|
|
|
|
|
|
!1,344,552
!1,467,415
!1,516,529
!1,624,638
!1,774,860
|-
!PV of Free Cash Flow
|
|
|
|
|
|
|
|
|
!1,211,308
!1,190,987
!1,108,873
!1,070,200
!1,053,293
|-
!Terminal  Value
|
|
|
|
|
|
|
|
|
|
|
|
|
!22,851,318
|-
!Present  Value of Terminal Value
|
|
|
|
|
|
|
|
|
|
|
|
|
!13,561,145
|-
!Enterprise  Value
|
|
|
|
|
|
|
|
|
|
|
|
|
!19,195,805
|-
!(-)  Net Debt
|
|
|
|
|
|
|
|
|
|
|
|
|
!3,151,394
|-
!(-)  Minority Interest
|
|
|
|
|
|
|
|
|
|
|
|
|
!105,939
|-
!Equity  Value
|
|
|
|
|
|
|
|
|
|
|
|
|
!15,938,472
|-
!#Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
!1,234
|-
!Share  Price
|
|
|
|
|
|
|
|
|
|
|
|
|
!12,916.26
|}
{| class="wikitable"
! colspan="2" rowspan="2" |Sensitivity Analysis
! colspan="7" |WACC
|-
!9.5%
!10.0%
!10.5%
!11.0%
!11.5%
!12.0%
! 12.50% 
|-
! rowspan="6" |Terminal growth rate
!2.0%
|14,538.39 
|13,436.09
|12,463.97
| 11,600.34 
|10,828.05
|10,133.39 
|9,505.26
|-
!2.5% 
|15,491.21
|14,254.75
|13,173.33
|12,219.60
|11,372.25
| 10,614.48
|9,932.85
|-
!3.0%
|16,590.61
|15,190.35
|13,977.27
!12,916.26
|11,980.47
|11,149.03
|10,405.45
|-
!3.3%
|17,335.37
|15,818.75
| 14,513.23
|13,377.69
|12,381.01
|11,499.25
|10,713.66
|-
!3.6%
|18,155.86
|16,506.05
|15,095.80
|13,876.53
|12,811.97
|11,874.49
|11,042.65
|-
!4.0%
|19,389.09
|17,529.38
|15,956.20
|14,608.16
|13,440.21
|12,418.58 
|11,517.44
|}
The above DCF outputs an implied share price of ¥12,916.26. A WACC of 11% and Terminal Growth Rate of 3% was used. As such, the annual required rate of return for an investment in Sony is 11%.