Certified project — Bank of America Investment Banking Job Simulation, completed 21 August 2026
A discounted cash flow valuation built as part of Bank of America's Investment Banking Job Simulation — projecting five years of unlevered free cash flow for Nintendo from revenue growth and margin assumptions, discounting at WACC, and layering on a terminal value to arrive at an implied enterprise value, equity value, and share price. Includes full two-way sensitivity analysis on WACC and terminal multiple.
Certificate of Completion, issued by Forage on behalf of Bank of America, 21 August 2026.
At an 8.5% discount rate and a 12x terminal EBITDA multiple, the model implies an enterprise value of $69.6B, an equity value of $78.7B, and a share price of $78.71 — with roughly 80% of that value sitting in the terminal value beyond the explicit five-year forecast.
$78.71Implied share price
$69.6BImplied enterprise value
$78.7BImplied equity value
8.5%WACC (discount rate)
Key assumptions
Revenue growth
5.0% / year
EBITDA margin
39.7% → 42.0%, ramping
Corporate tax rate
40.0%
D&A / NWC / Capex (% of revenue)
0.7% / 5.0% / 0.5%
Terminal multiple
12.0x forward EBITDA
Revenue & EBITDA, 2022–2026
RevenueEBITDA
5-year forecast & unlevered free cash flow
Year
Revenue
EBITDA
Margin
Unlevered FCF
Discounted FCF
2022
$13,600M
$5,400M
39.7%
$3,210M
$2,959M
2023
$14,280M
$5,752M
40.3%
$3,386M
$2,876M
2024
$14,994M
$6,125M
40.9%
$3,607M
$2,824M
2025
$15,744M
$6,522M
41.4%
$3,841M
$2,772M
2026
$16,531M
$6,943M
42.0%
$4,090M
$2,720M
Enterprise & equity value bridge
PV of Unlevered FCF (2022–2026)
$14,150M
PV of Terminal Value
$55,409M
Implied TEV
$69,559M
Plus: Cash
$9,200M
Less: Debt
$-50M
Implied Equity Value
$78,709M
Enterprise value and implied share price both swing meaningfully with the terminal multiple assumption — a full turn of the multiple (11x → 13x) moves the share price by roughly $9, more than a full percentage point of WACC does.
