As of May 28, 2025, CC Japan Income and Growth Trust PLC has a Discounted Cash Flow (DCF) derived fair value of $389.76 per share. With the current market price at $188.00, this represents a potential upside of 107.3%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $350.30 |
| DCF Fair Value (10-year) | $389.76 |
| Potential Upside (5-year) | 86.3% |
| Potential Upside (10-year) | 107.3% |
| Discount Rate (WACC) | 9.2% - 10.8% |
Revenue is projected to grow from $42 million in 10-2024 to $61 million by 10-2034, representing a compound annual growth rate of approximately 3.8%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 10-2024 | 42 | 0% |
| 10-2025 | 44 | 5% |
| 10-2026 | 46 | 5% |
| 10-2027 | 47 | 2% |
| 10-2028 | 48 | 3% |
| 10-2029 | 51 | 5% |
| 10-2030 | 52 | 2% |
| 10-2031 | 54 | 4% |
| 10-2032 | 57 | 6% |
| 10-2033 | 59 | 3% |
| 10-2034 | 61 | 5% |
Net profit margin is expected to improve from 90% in 10-2024 to 90% by 10-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 10-2024 | 38 | 90% |
| 10-2025 | 40 | 90% |
| 10-2026 | 42 | 90% |
| 10-2027 | 42 | 90% |
| 10-2028 | 44 | 90% |
| 10-2029 | 46 | 90% |
| 10-2030 | 47 | 90% |
| 10-2031 | 49 | 90% |
| 10-2032 | 52 | 90% |
| 10-2033 | 53 | 90% |
| 10-2034 | 55 | 90% |
with a 5-year average of $0 million. Projected CapEx is expected to maintain at approximately 0% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 10-2025 | 0 |
| 10-2026 | 0 |
| 10-2027 | 0 |
| 10-2028 | 0 |
| 10-2029 | 0 |
| 10-2030 | 0 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | (20) |
| Days Inventory | 0 |
| Days Payables | 0 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2025 | 41 | 1 | 0 | (6) | 46 |
| 2026 | 43 | 1 | 0 | 4 | 38 |
| 2027 | 44 | 1 | 0 | (1) | 43 |
| 2028 | 45 | 1 | 0 | (1) | 45 |
| 2029 | 47 | 1 | 0 | 1 | 45 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 350.30 | 86.3% |
| 10-Year DCF (Growth) | 389.76 | 107.3% |
| 5-Year DCF (EBITDA) | 268.62 | 42.9% |
| 10-Year DCF (EBITDA) | 329.24 | 75.1% |
Is CC Japan Income and Growth Trust PLC (CCJI.L) a buy or a sell? CC Japan Income and Growth Trust PLC is definitely a buy. Based on our DCF analysis, CC Japan Income and Growth Trust PLC (CCJI.L) appears to be significantly undervalued with upside potential of 107.3%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider a strong buy at the current market price of $188.00.