This paper deals with the aspects of die design for the multistage fine tooth hub gear in the cold forging process. In order to manufacture the cold forged product for the precision hub gear used as the ARD 370 system of bicycle, it examines the influences of different designs on the metal flow through experiments and FE-simulation. To find the combination of design parameters which minimize the damage value, the low gear length, upper gear length and inner diameter as design parameters are considered. An orthogonal fraction factorial experiment is employed to study the influence of each parameter on the objective function or characteristics. The optimal punch shape of fine tooth hub gear is designed using the results of FE-simulation and the artificial neural network. To verify the optimal punch shape, the experiments of the cold forging of the hub gear are executed.