SoftBank (TSE:9434) Valuation Check as Shares Drift Higher After Strong Multi‑Year Returns
SoftBank (TSE:9434) has been drifting slightly higher this week, and with the stock still down over the past 3 months despite strong multi year returns, investors are revisiting the telecom giant’s valuation.
See our latest analysis for SoftBank.
At ¥217.8 per share, SoftBank’s recent drift lower follows a solid run, with an 11 percent year to date share price return and a 5 year total shareholder return of 117.41 percent, suggesting longer term momentum is still very much intact.
If SoftBank’s trajectory has you thinking about what else might be setting up for the next leg higher, now is a good time to explore fast growing stocks with high insider ownership.
With shares still trading at a discount to analyst targets and our estimate of intrinsic value despite steady earnings growth, the key question now is whether SoftBank is genuinely undervalued or whether the market has already priced in its next leg of growth.
Most Popular Narrative Narrative: 7.3% Undervalued
SoftBank’s most followed narrative pegs fair value at ¥234.93 per share, a moderate premium to the ¥217.8 last close, framing a measured upside case.
Strategic investment in domestic semiconductor initiatives (e.g., Rapidus) and collaborations with global technology leaders (e.g., NVIDIA) are likely to strengthen Japan's self-sufficiency in next-gen computing, supporting sustained long-term growth in SoftBank's technology and telecom portfolio and reducing future earnings volatility tied to supply chain/geopolitical risks.
Curious how steady revenue growth, rising margins and a lower future earnings multiple can still point to upside from here? The full narrative lays out the surprisingly ambitious financial path behind that conclusion, including how long term earnings power is modeled and why a modest discount rate still supports a higher fair value. Want to see the exact assumptions that make this valuation tick?
Result: Fair Value of ¥234.93 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, intensifying price competition and rising network upgrade costs could squeeze margins and delay the payoff from SoftBank’s ambitious AI and digital infrastructure push.
Find out about the key risks to this SoftBank narrative.
Build Your Own SoftBank Narrative
If you see things differently or simply want to test your own assumptions against the numbers, you can build a personalized view in just a few minutes, Do it your way.
A great starting point for your SoftBank research is our analysis highlighting 3 key rewards and 1 important warning sign 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.
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