Update shared on 11 Dec 2025
Fair value Increased 0.22%Analysts have nudged their price target on Bridgestone slightly higher to reflect a modest increase in estimated fair value, driven by a lower perceived discount rate and slightly richer future valuation multiples, partially offset by more conservative expectations for revenue growth and profit margins.
What's in the News
- Unveiled the Potenza RE-71RZ extreme summer performance tire for grassroots racing, promising significantly faster dry and wet lap times, improved wear life and enhanced sustainability via ENLITEN technology (Product-Related Announcement).
- Announced launch of BATTLAX RACING STREET RS12 premium sports motorcycle tires for North America and Europe in January 2026, bringing race-derived technology and higher dry grip to road-legal products (Product-Related Announcement).
- Revised 2025 earnings guidance, trimming revenue and EPS expectations as weaker U.S. truck and bus tire demand, softer retail trends and cyber incidents weigh on North American and Brazilian operations (Corporate Guidance, Lowered).
- Approved a stock split and related amendments to the Articles of Incorporation, including an increase in authorized shares effective January 1, 2026, to align capital structure with future growth plans (Board Meeting and Bylaw Changes).
- Named Yasuhiro Morita as Global CEO and Representative Executive Officer effective January 1, 2026, succeeding Shuichi Ishibashi and signaling continued focus on global optimization and overseas tire markets (Executive Changes, CEO).
Valuation Changes
- The Fair Value Estimate has risen slightly to approximately ¥7,646 per share from about ¥7,629 per share, reflecting a modest upward revision in intrinsic value.
- The Discount Rate has fallen slightly to about 6.58 percent from roughly 6.67 percent, implying a somewhat lower perceived risk profile or cost of capital.
- Revenue Growth has been trimmed slightly to around 3.81 percent from about 4.00 percent, signaling more conservative expectations for the top line.
- The Net Profit Margin has declined modestly to roughly 9.74 percent from about 9.99 percent, indicating slightly lower anticipated profitability.
- The future P/E has risen slightly to about 10.9x from roughly 10.6x, suggesting a marginally richer valuation multiple on forward earnings.
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