KDDI Corp. (9433.T)
Communications · TSE · Japan
Fundamentals
Valuation and ratings
KDDI Corp. trades at ¥2,891.00, which is 112% below the ¥6,139.10 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 61 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 15.2 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About KDDI Corp.
KDDI Corporation engages in the provision of mobile telecommunications services in Japan and internationally. It operates in two segments, Personal Services and Business Services. The Personal Services segment offers 5G telecommunication services and other services, such as finance, energy, and LX through its multi-brands comprising au, UQ mobile, and povo; and entertainment services, including video to individual customers. The Business Services segment provides smartphones and other devices, network, and cloud services; and data center services to corporate customers under the TELEHOUSE brand name. It is also involved in the provision of solutions for the development and expansion of businesses through IoT, DX, generative AI, and other technology centered on 5G communications. In addition, the company sells mobile handsets. KDDI Corporation was incorporated in 1984 and is headquartered in Minato, Japan.
9433.T passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is KDDI Corp. (9433.T) undervalued?
Against our discounted cash flow estimate of ¥6,139.10, 9433.T at ¥2,891.00 is 112% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is 9433.T's P/E ratio?
9433.T trades at 15.2 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.