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SoftBank (TSE:9434) Valuation Check After Strong Multi Year Total Shareholder Returns

Simply Wall St · 4d ago

SoftBank (TSE:9434) has recently drawn attention as investors reassess its telecom focused business against current returns, with the share price at ¥216.2 and total return figures available across multiple timeframes.

See our latest analysis for SoftBank.

At a share price of ¥216.2, SoftBank’s recent moves in telecom and digital services come against a relatively quiet share price trend over shorter periods. At the same time, a 1 year total shareholder return of 14.57% and 3 and 5 year total shareholder returns of 66.00% and 106.12% point to momentum that has been built up over time.

If SoftBank’s track record has you thinking about opportunities elsewhere in communications and tech, it could be a good moment to see what is happening across high growth tech and AI stocks.

With SoftBank trading at ¥216.2 and an indicated 24.57% intrinsic discount alongside solid total returns, the key question is whether the current price still undervalues its telecom and digital mix or if markets are already pricing in future growth.

Most Popular Narrative: 8% Undervalued

Against the last close of ¥216.2, the most followed narrative sees fair value modestly higher, built on expectations around AI, fintech and digital infrastructure.

Planned rollout of homegrown large language models (LLMs) and commercial GPU as a service targeting Japan-based enterprises capitalizes on surging enterprise AI adoption. This is expected to accelerate recurring revenues and support margin expansion from higher-value digital infrastructure services.

Read the complete narrative.

Curious what kind of growth in revenue, earnings and margins is baked into that view, and what future P/E needs to make the maths work? The full narrative walks through those assumptions in detail and shows how they link back to a fair value above today’s price.

Result: Fair Value of ¥234.93 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this narrative can quickly be challenged if intense price competition in Japan squeezes ARPU, or if heavy AI and data center spending fails to generate matching demand.

Find out about the key risks to this SoftBank narrative.

Build Your Own SoftBank Narrative

If that view does not quite fit how you see SoftBank, you can stress test the assumptions and shape your own full narrative in 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.

Ready For More Investment Ideas?

If SoftBank has sharpened your thinking, do not stop here. Let the same data-driven approach point you toward fresh stock ideas in minutes.

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.