Nintendo (TSE: 7974) | Switching Up On All Fronts

Key Points

👾 Nintendo is a Japanese multinational consumer electronics and video game company headquartered in Kyoto

🏯 The company possesses strong moats around its robust IP (Mario, Pokémon, Zelda and many more), family-focused gaming ecosystem and its vast experience in console and handheld gaming

📈 Margin expansion from selling games digitally and improved earnings quality from generation of recurring revenue through Switch Online

💰 Strong IP also creates potential optionality for non-gaming revenue streams from theme park, retail store and merchandise expansion

🧮 DCF-based fair value estimate of ¥79,700 with a 22% upside from current price (WACC of 8% and terminal growth rate of 2%)

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