SoftBank Group (9984.T)
Communications · TSE · Japan
Fundamentals
Valuation and ratings
SoftBank Group trades at ¥5,961.00, which is 135% below the ¥14,014.00 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 86 out of 100, which is a wide moat. 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 7.3 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 SoftBank Group
SoftBank Group Corp. provides telecommunication services in Japan and internationally. It operates through Holding Company Investment Business, SoftBank Vision Funds, SoftBank, AI Computing Business, and Other segments. The company engages in Consumer Business, mobile services and broadband; mobile services and solutions; ICT service materials to corporate clients; media, advertising, and related services; and payment and financial services. It also offers semiconductor IP, chips, and related technologies, and software tools and related services; development, construction, and operation of solar power plants; and data center development and construction, as well as robotics-related and Hawks-related businesses. It also provides online advertising and e-commerce services; payment and financial services; information and communication technology services products to enterprise customers; and communication device-related products and Internet of Things equipment to retail customers. In addition, the company engages in alternative investment management; ownership of professional baseball team; operation of baseball games; management and maintenance of baseball stadium and other sports facilities; genetic testing, medical data utilization; and distribution of video, voice, and data content via media businesses. Further, it is involved in the certification services, security solutions, and Linux/OSS businesses; operation of comprehensive IT information site ITmedia; internet advertising agency business; facility management; planning and operation of fashion e-commerce website; operational support of brands' own e-commerce website; operation of fashion coordination app; banking; mail order sale of stationery and services; and provision of autonomous forklifts. The company was formerly known as SoftBank Corp. and changed its name to SoftBank Group Corp. in July 2015. SoftBank Group Corp. was incorporated in 1981 and is headquartered in Tokyo, Japan.
9984.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 SoftBank Group (9984.T) undervalued?
Against our discounted cash flow estimate of ¥14,014.00, 9984.T at ¥5,961.00 is 135% 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 9984.T's P/E ratio?
9984.T trades at 7.3 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.