Disco Corp (DSCSY) fair value: what the stock is really worth
As of Oct 21, 2026: fair value (intrinsic value) of Disco Corp stock $37.52, price $34.11, upside +10.0%, quality 73 out of 100. Rating: fairly valued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Oct 22, 2026.
How to read this chart
60‑month range $6.32 – $54.68 · fair‑value band $24.68 – $48.94 · the $34.11 price screens below the $37.52 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Oct 22, 2026.
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Disco Corporation manufactures and sells precision cutting, grinding, and polishing machines in Japan and internationally. Its precision machines include dicing saws, laser saws, grinders, polishers, wafer mounters, die separators, surface planers, and waterjet saws.
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The company also offers precision processing tools, such as dicing blades, grinding wheels, and dry polishing wheels; and other products, such as accessory equipment, cut-off wheels, and related products.
In addition, it is involved in the maintenance, disassembly, and recycling of precision cutting, grinding, and polishing machines, as well as provides training services for the maintenance and operation of its machines.
Further, the company leases precision machines; and purchases and sells used machines. Additionally, it manufactures and sells precision diamond abrasive tools; and offers chargeable processing services. The company was founded in 1937 and is based in Tokyo, Japan.
Stock analysis
Disco Corp (DSCSY) currently trades at $34.11, while our model-based Fair Value estimate is $37.52, implying the stock looks roughly 9.1% undervalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of $20.80 per share, and 0 of the 26 models we run sit above the $34.11 price.
Bear case: the Dividend Discount group reads lowest at $4.41, and 26 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: $24.68 (bear) to $48.94 (bull), the price of $34.11 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 73/100 (solid quality), in the Technology sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Disco Corp ADR reported revenue of ¥463B in FY2026 versus ¥254B in FY2022, a compound +16.2%/yr. Reported net income was ¥144B in FY2026, compounding +21.4%/yr from FY2022.
Key figures
Market cap $37.2B Large · P/E ratio 39.2 · P/S ratio 12.2 · EPS (TTM) $0.8700 · Dividend yield 0.9% · Net margin 31.0% · Return on equity 27.4% · Return on assets (EBIT) 23.9%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 91 out of 100 (medium confidence).
What moves the price
The share trades about 38% below its 52-week high and 32% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Technology peers we cover trades at −11% fair-value upside, at 10%, DSCSY screens cheaper than that median.
Fair Value models
Bear$24.68Fair Value $37.52Bull$48.94
Price $34.11 · Upside +10.0%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 7 months old). Earnings retained since then ($0.4910 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.80/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+17.8%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+17.7%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+20.4%
Start year 2021 (pandemic). Over 10 years: +13.7% a year
Revenue growth 21 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+10.2%
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What shareholders gained per year (last 5 years), in JPY (mathematically smoothed) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Smoothed = median of all growth paths between the years of the window (trend line on the logarithm of earnings per share): a single extreme year cannot distort the rate. The reported figure stays in the tooltip. Measured in JPY: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+26.1%
Earnings growth per share plus dividend.
Earnings per share, growth per year+25.2%
Dividend (yield on the price)0.9%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.29.6% vs 19.9%, picking up
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.29% → 42%
2026 sits 70% above its own trend. The rate follows the median trend of the last 5 years, not that single year.
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+26.8%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+17.0%
Yearly sales growth analysts expect, extended to five years.
After inflation (figures in JPY, Japan: IMF forecast 2.1% a year to 2030, 1.3% from 2016 to 2025) that is about +24.2% a year for the price and +14.5% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (58 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Neutral
Recent news coverage is roughly neutral, about typical for how stocks are covered.
AI conclusion: Leading niche position in dicing and grinding tools supports strong margins and pricing power with zero debt, yet the business shows no clear buffers against abrupt customer spending shifts.
Main risk: Abrupt shifts in customer capital spending threaten demand for specialized equipment and could reduce margins when orders drop sharply.
Disco maintains a leading share in the niche for semiconductor dicing and grinding tools, which underpins its ability to generate strong margins even as sales fluctuate. Preliminary results show solid shipment growth tied to ongoing chip demand, yet the equipment business faces abrupt changes in customer capital spending. Can its specialized position deliver steady results through the next downturn or will cyclical swings dominate once more?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Semiconductor Equipment & Materials · 225 stocks
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
As of Oct 22, 2026, our model estimates a fair value of $37.52 versus a price of $34.11, about +10% upside (undervalued).
What is the fair value of DSCSY?
Our model-based fair value for Disco Corp ADR is $37.52 (as of Oct 22, 2026), built from audited fundamentals. The current price: $34.11.
What is the quality score of DSCSY?
Disco Corp ADR has a Quality Score of 73/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Disco Corp (DSCSY)?
Our model-based price target is the fair value of $37.52 (as of Oct 22, 2026) from 26 valuation models. Cautious scenario $24.68, optimistic scenario $48.94. It is a calculation from audited fundamentals, not an analyst target.
What is the Disco Corp ADR stock forecast for 2026?
Our models put fair value at $37.52, about +10% upside versus a price of $34.11 (undervalued). Cautious scenario $24.68, optimistic scenario $48.94. The calculation is refreshed regularly with new filings.
What is the revenue of Disco Corp (DSCSY)?
Disco Corp ADR reported trailing-twelve-month revenue of about ¥461B (latest available figure, as of Oct 22, 2026).
Does Disco Corp ADR pay a dividend?
Disco Corp ADR currently shows a dividend yield of 0.93% relative to its recent price (as of Oct 22, 2026).
What growth is priced into Disco Corp (DSCSY)?
For today's price to be fair in a discounted-cash-flow model, Disco Corp ADR would have to grow free cash flow by +26.8 % per year for five years (discount rate 9.2 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +20.4 % per year. As of Oct 22, 2026.
What discount rate (WACC) does the fair value of DSCSY use?
Our models discount Disco Corp ADR at 9.2 %: a base by market capitalisation (large), damped by beta 1.01, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Disco Corp ADR that is +26.8 % per year a year over ten years, using the same discount rate (9.2 %) and the same formula as our fair value.
How much growth has Disco Corp (DSCSY) delivered so far?
Over the past 5 years revenue at Disco Corp ADR grew +20.4 % a year. The price currently implies +26.8 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Disco Corp (DSCSY) growing?
The median revenue growth in the sector is +10.8 % a year. That is the yardstick for the growth priced into Disco Corp ADR (+26.8 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Disco Corp (DSCSY)?
The free-cash-flow yield on the price is 1.78 %: that much free cash flow Disco Corp ADR produces per unit of market value. When it exceeds the discount rate of our models (9.2 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Disco Corp (DSCSY)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Disco Corp ADR it is $37.52 per share (as of Oct 22, 2026), against a price of $34.11. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Disco Corp ADR stock overvalued or undervalued in 2026?
As of Oct 22, 2026, DSCSY trades below its calculated fair value: price $34.11, fair value $37.52, a gap of about +10% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of DSCSY?
No. The price is what the market pays today ($34.11); the fair value is what the company's own numbers justify ($37.52). For Disco Corp ADR the two are $3.41 per share apart. That gap is exactly why we show both numbers side by side.
How much is Disco Corp ADR worth?
The market values Disco Corp ADR at about $37.2B (market capitalisation, as of Oct 22, 2026). Per share that is $34.11; our models calculate a fair value of $37.52 per share.
What do the bullish and bearish scenarios say about DSCSY?
Our models span a range for Disco Corp ADR: cautious scenario $24.68, base $37.52, optimistic $48.94 per share (as of Oct 22, 2026, price $34.11). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of DSCSY?
Disco Corp ADR trades at a price-to-earnings ratio of 39.2 (as of Oct 22, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $37.52 is built from several models across several years. Other multiples: PEG 1.6, P/B 9.9, P/S 12.6, EV/EBITDA 25.9.
What is the PEG ratio of DSCSY?
The PEG ratio of Disco Corp ADR is 1.63 (P/E divided by earnings growth, as of Oct 22, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Disco Corp (DSCSY)?
Balance-sheet figures for Disco Corp ADR (as of Oct 22, 2026): return on equity 27.4%. They feed the Quality Score of 73/100, which measures business quality independently of the share price.
How far is DSCSY from its 52-week high?
Disco Corp ADR trades at $34.11, about 38% below its 52-week high of $54.68 and 32% above the low of $25.78 (as of Oct 21, 2026). Distance from the high says nothing about value: that is what the fair value of $37.52 is for.
Which stocks are comparable to Disco Corp ADR?
From the same area (Technology) we also value ASML Holding, Lam Research Corporation, Applied Materials, Inc, KLA Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Disco Corp ADR stock attractive at the current price?
The data as of Oct 22, 2026: price $34.11, calculated fair value $37.52 (+10%), Quality Score 73/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of DSCSY calculated?
We run Disco Corp ADR through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $37.52, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.2 % above its aggregate fair value. Disco Corp ADR currently trades 9 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Disco Corp (DSCSY)?
The closing price on Oct 21, 2026 was $34.11. Our model-based fair value is $37.52, about +10% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Disco Corp ADR right now?
A fairly wide model range ($24.68 to $48.94) leaves room in how you read the outcome. The price sits in the lower half of our model range, the side with the larger margin of safety. The data supports the verdict: every model runs on fully documented inputs.
Where does the earnings growth of Disco Corp (DSCSY) come from?
Earnings per share at Disco Corp ADR grew +20.0 % a year from 2015 to 2026. Broken into its drivers: revenue per share +12.9 %, EBIT margin +6.9 %, tax rate −0.3 %, residual (interest, one-offs) −0.2 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Disco Corp ADR
How large is the market capitalisation of Disco Corp (DSCSY)?
The market capitalisation of Disco Corp ADR is $37.2B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Disco Corp (DSCSY)?
The price-to-sales ratio of Disco Corp ADR is 12.2 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Disco Corp (DSCSY)?
Earnings per share at Disco Corp ADR are $0.8700 (price ÷ EPS = P/E 39.2). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Disco Corp (DSCSY)?
The dividend yield of Disco Corp ADR is 0.9% (payout 36.5%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Disco Corp (DSCSY)?
The net margin of Disco Corp ADR is 31.0% (fiscal year 2026). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Disco Corp (DSCSY)?
The return on equity (ROE) of Disco Corp ADR is 27.4% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Disco Corp (DSCSY)?
On an EBIT basis the return on assets of Disco Corp ADR is 23.9% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Disco Corp (DSCSY)?
The operating margin of Disco Corp ADR is 42.7% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Disco Corp (DSCSY)?
Revenue at Disco Corp ADR is growing +27.1% versus a year earlier (3y avg +17.7%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Disco Corp (DSCSY)?
Earnings per share at Disco Corp ADR are growing +43.5% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Disco Corp (DSCSY) hold?
Disco Corp ADR holds more cash than debt, ¥286B net (fiscal year 2026). The company holds more cash than debt, a safety cushion.
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Broad data
Oct 22, 2026