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    NTT DATA Group (OTCPK:NTDT.Y): Valuation Check After New AI Subsidiary, CEO Appointment and Cybersecurity Expansion

    Simply Wall St·12/18/2025 02:39:31
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    NTT DATA Group (OTCPK:NTDT.Y) just laid out a clear AI playbook by spinning up NTT DATA AIVista in Silicon Valley, naming seasoned AI executive Dr. Bratin Saha as CEO, and doubling down on AI driven cyber and data center capacity.

    See our latest analysis for NTT DATA Group.

    Investors are clearly noticing this AI and infrastructure push, with the share price up 8.33% over the last week and a 2025 year to date share price return of 37.42 percent, adding to an already strong multi year total shareholder return profile.

    If this kind of AI driven story has your attention, it is also worth exploring other high growth tech names by checking out high growth tech and AI stocks.

    But with NTT DATA pivoting hard into AI, cybersecurity and hyperscale infrastructure, while the share price already reflects strong multi year gains, does the current valuation still leave room for upside, or is future growth already priced in?

    Price-to-Earnings of 27.9x: Is it justified?

    On a last close of $26.00, NTT DATA Group trades at a price-to-earnings ratio of 27.9 times. This suggests the market already prices in solid profitability versus peers.

    The price-to-earnings multiple compares the current share price to per share earnings. It is a useful yardstick for established IT and services companies where earnings quality and consistency matter. For NTT DATA Group, that 27.9 times multiple is supported by high quality earnings and a track record of profit growth. It also reflects investor expectations that these earnings will keep expanding as the business focuses further on AI, cybersecurity and cloud services.

    Against the broader US IT industry, where the average price-to-earnings ratio sits at 29.8 times, NTT DATA Group appears slightly cheaper. This implies the market has not fully bid the shares up to the sector average despite faster earnings growth than the industry over the past year. However, when you compare that same 27.9 times multiple to a peer average of 21.2 times, the stock looks more expensive on relative terms, while a fair price-to-earnings ratio estimate of 31.8 times points to potential further upside if sentiment continues to improve.

    Explore the SWS fair ratio for NTT DATA Group

    Result: Price-to-Earnings of 27.9x (ABOUT RIGHT)

    However, investors still face execution risk around AI monetization and potential margin pressure if large scale cloud, 5G and cybersecurity investments fail to earn adequate returns.

    Find out about the key risks to this NTT DATA Group narrative.

    Build Your Own NTT DATA Group Narrative

    If you see the story differently or want to dig into the numbers yourself, you can build a custom view in just minutes using Do it your way.

    A great starting point for your NTT DATA Group research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.