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NTT (TSE:9432) Is Back In Focus, What Is Catching Attention Now?

Simply Wall St · 2d ago

NTT (TSE:9432) is back in focus after a recent upgrade to a Zacks Rank #1 rating. The move is tied to higher earnings estimates and perceived improvement in the telecom group's fundamentals.

Short term, NTT’s share price has been choppy, with a 7 day share price return of 2.05% in the red. However, the 30 day and 90 day share price returns of 8.52% and 15.44% suggest momentum has been rebuilding, while longer term total shareholder returns of 12.44% over 1 year and 54.82% over 5 years point to a steadier, more patient payoff profile.

Scan for other telecom and infrastructure stocks that analysts rate highly and that show rebuilding momentum using our curated list of 22 high quality undervalued stocks.

For NTT, the bullish story leans on upgraded earnings expectations, while the bear case points to recent share price swings. Which side does the current valuation actually support?

Most Popular Narrative: 2% Overvalued

NTT last closed at ¥172, which sits slightly above the most followed fair value estimate of ¥169.21, so the market is only pricing in a mild premium.

NTT's investment in proprietary technologies (e.g., IOWN, advanced LLMs like tsuzumi 2, and photonics) positions it to benefit from surging connectivity and low-latency compute requirements driven by the global rollout of 5G/6G and edge computing. These developments underpin sustainable earnings growth and an expanded addressable market for high-value services, supporting future margin and EBIT expansion.

Read the complete narrative.

Want to see what sits behind that premium tag on NTT? The story leans on steady top line expansion, firm margins, and a richer earnings multiple than today. Curious which assumptions carry the most weight in that ¥169.21 figure and how the 6.05% discount rate shapes the outcome? The full narrative spells out the exact trade off between growth, profitability, and valuation expectations.

Result: Fair Value of ¥169.21 (OVERVALUED)

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

Still, the NTT narrative wobbles if legacy fixed line services shrink faster than expected, or if heavy data center and network spending keeps squeezing free cash flow.

Find out about the key risks to this NTT narrative.

Another View: NTT Through The Earnings Lens

The SWS DCF model points to a value of ¥159.69 for NTT, which is below both the ¥169.21 fair value narrative and the ¥172 market price. That tilt toward overvaluation on cash flows raises a simple question: Are you more comfortable anchoring on earnings multiples or on long run cash generation?

Look into how the SWS DCF model arrives at its fair value.

9432 Discounted Cash Flow as at Sep 2026
9432 Discounted Cash Flow as at Sep 2026

Next Steps

Mixed on NTT after reading all this? Act now: review the underlying figures and sentiment, then weigh the 2 key rewards and 2 important warning signs.

Looking For More Ideas Beyond NTT?

Do not stop with NTT. Use the Simply Wall Street Screener to uncover fresh opportunities that fit your style before the next wave of ideas gets crowded.

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.