Update shared on 05 Dec 2025
Fair value Decreased 4.23%Analysts have trimmed their price target on LY by approximately $25 per share. This reflects a slightly higher assumed discount rate, marginally slower long term revenue growth expectations, and a modestly lower future earnings multiple, partly offset by a small improvement in projected profit margins.
What's in the News
- Raised dividend guidance for the fiscal year ending March 31, 2026 to JPY 7.30 per share, up from JPY 7.00, reflecting stronger shareholder return commitments and long term value creation goals (Key Developments)
- Reaffirmed a shareholder return policy targeting a cumulative total payout ratio of 70% or more over FY2025 to FY2029, balancing upfront investment with higher distributions (Key Developments)
- Scheduled a board meeting for September 11, 2025 to approve the acquisition of shares in LINE MAN CORPORATION PTE. LTD, aiming to convert it from an equity method affiliate into a consolidated subsidiary (Key Developments)
Valuation Changes
- Fair Value: decreased modestly to approximately ¥558 per share from about ¥583, reflecting a slightly more conservative outlook.
- Discount Rate: risen slightly to roughly 8.1 percent from about 7.6 percent, increasing the required return for valuing future cash flows.
- Revenue Growth: edged down to around 6.7 percent from roughly 7.1 percent, indicating a more cautious long term growth assumption.
- Net Profit Margin: improved marginally to about 8.7 percent from approximately 8.7 percent, suggesting a small uplift in expected profitability.
- Future P/E: fallen moderately to around 20.4x from roughly 22.2x, implying a lower valuation multiple on projected earnings.
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