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SoftBank (TSE:9434) Could Be 6% Undervalued After First Quarter Earnings

Simply Wall St · 2d ago

SoftBank’s Latest Quarterly Earnings Set The Tone For Investors

SoftBank (TSE:9434) recently reported first quarter 2026 earnings, with sales of ¥1,814,722 million and net income of ¥150,070 million. These figures, along with modestly higher earnings per share, are shaping current investor focus on the stock.

See our latest analysis for SoftBank.

SoftBank’s recent first quarter 2026 results appear to sit alongside a stronger price trend, with a 1-month share price return of 6.97% and a year to date share price return of 8.65%. Over a longer horizon, the 3-year total shareholder return of 65.00% and 5-year total shareholder return of 104.55% show how recent momentum fits within a much stronger multi year performance profile.

If SoftBank’s latest move has you thinking about what else is working in the market, this is a good moment to widen your search using our screener for 11 top founder-led companies

Bulls point to SoftBank’s recent earnings and long term returns. Bears question how much of that strength is already reflected in the current share price. Do the numbers still leave meaningful upside on today’s valuation metrics?

Most Popular Narrative: 6% Undervalued

SoftBank’s most followed narrative points to a fair value of ¥249, compared with the latest close at ¥234.9. This keeps attention firmly on valuation rather than just short term price moves.

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

Read the complete narrative. Read the complete narrative.

Want to see what is backing that higher fair value for SoftBank? The narrative leans on steady revenue growth, firmer margins and a richer future earnings multiple. It also highlights which specific earnings and revenue assumptions would need to hold for that view to be supported.

Result: Fair Value of ¥249 (UNDERVALUED)

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

However, SoftBank investors still need to watch for rising network and data center costs and pressure in low priced mobile plans that could compress margins and test this undervalued case.

Find out about the key risks to this SoftBank narrative.

Another View On SoftBank’s Valuation

The earlier fair value of ¥249 for SoftBank is built from a narrative and future earnings assumptions. The current P/E of 20.6x is higher than the Asian wireless telecom industry at 16.6x, the peer average at 15.1x, and a fair ratio of 14x, which implies valuation risk if sentiment cools.

To see how this richer P/E profile compares with the detailed valuation work, it is worth checking the fuller breakdown of the numbers and assumptions behind it. See what the numbers say about this price — find out in our valuation breakdown.

TSE:9434 P/E Ratio as at Aug 2026
TSE:9434 P/E Ratio as at Aug 2026

Next Steps

If this SoftBank story appears finely balanced between risk and reward, consider reviewing the data yourself and forming your own view using the 3 key rewards and 1 important warning sign.

Looking For More Investment Ideas Beyond SoftBank?

If you are serious about building a stronger portfolio, do not stop with SoftBank. Use the Simply Wall Street Screener now to uncover fresh opportunities.

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.