Rakuten Group, Inc.

WBAG:RAK Stock Report

Market Cap: €11.4b

Rakuten Group Valuation

Is RAK undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of RAK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RAK (€5.28) is trading below our estimate of fair value (€54.84)

Significantly Below Fair Value: RAK is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RAK?

Key metric: As RAK is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for RAK. This is calculated by dividing RAK's market cap by their current revenue.
What is RAK's PS Ratio?
PS Ratio0.9x
SalesJP¥2.20t
Market CapJP¥1.88t

Price to Sales Ratio vs Peers

How does RAK's PS Ratio compare to its peers?

The above table shows the PS ratio for RAK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.8x
NXT NEXT
1.9x4.6%UK£11.3b
7532 Pan Pacific International Holdings
1.2x4.7%JP¥2.6t
OLLI Ollie's Bargain Outlet Holdings
3.2x10.9%US$7.3b
FALABELLA Falabella
0.7x5.1%CL$8.7t
RAK Rakuten Group
0.9x7.4%€1.9t

Price-To-Sales vs Peers: RAK is good value based on its Price-To-Sales Ratio (0.9x) compared to the peer average (1.8x).

Price to Sales Ratio vs Industry

How does RAK's PS Ratio compare vs other companies in the European Multiline Retail Industry?

4 CompaniesPrice / SalesEstimated GrowthMarket Cap
RAK 0.9xIndustry Avg. 0.8xNo. of Companies4PS00.61.21.82.43+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: RAK is expensive based on its Price-To-Sales Ratio (0.9x) compared to the European Multiline Retail industry average (0.8x).

Price to Sales Ratio vs Fair Ratio

What is RAK's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RAK PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.9x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate RAK's Price-To-Sales Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst RAK forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€5.28
€5.90
+11.9%
20.1%€7.36€2.45n/a13
Dec ’25€5.44
€6.07
+11.6%
21.5%€8.14€2.51n/a12
Nov ’25€5.48
€5.93
+8.1%
21.4%€7.96€2.45n/a13
Oct ’25€5.74
€6.02
+5.0%
21.6%€8.12€2.50n/a13
Sep ’25€6.42
€5.83
-9.2%
20.8%€8.10€2.49n/a15
Aug ’25€5.26
€5.29
+0.6%
19.2%€7.13€2.40n/a15
Jul ’25€4.97
€5.00
+0.6%
20.5%€6.99€2.35n/a15
Jun ’25€4.78
€5.00
+4.7%
20.7%€6.99€2.35n/a15
May ’25€4.53
€4.96
+9.4%
21.8%€7.07€2.38n/a15
Apr ’25€5.22
€4.79
-8.3%
25.0%€7.25€2.44n/a16
Mar ’25€5.05
€4.21
-16.5%
21.7%€6.12€2.45n/a16
Feb ’25€3.94
€4.01
+1.9%
20.1%€6.26€2.51n/a16
Jan ’25€4.05
€3.99
-1.4%
19.4%€6.35€2.54n/a16
Dec ’24€3.52
€4.09
+16.2%
27.2%€7.44€2.48€5.4417
Nov ’24€3.47
€4.16
+20.0%
27.3%€7.56€2.52€5.4817
Oct ’24€3.89
€4.24
+8.9%
30.1%€7.60€2.79€5.7416
Sep ’24€3.63
€4.43
+22.0%
30.1%€7.61€2.79€6.4217
Aug ’24€3.54
€4.46
+26.1%
30.7%€7.69€2.82€5.2617
Jul ’24€3.18
€4.89
+53.5%
26.5%€7.74€2.84€4.9715
Jun ’24€3.86
€5.48
+41.9%
43.2%€13.31€2.93€4.7815
May ’24€4.54
€5.80
+27.7%
37.8%€13.32€3.46€4.5317
Apr ’24€4.27
€5.99
+40.3%
38.9%€14.03€3.65€5.2216
Mar ’24€4.67
€6.01
+28.7%
37.7%€13.84€3.60€5.0517
Feb ’24€4.70
€6.19
+31.5%
37.6%€14.13€3.67€3.9417
Jan ’24€4.22
€6.39
+51.5%
37.6%€14.26€3.71€4.0517
Dec ’23€4.63
€6.28
+35.7%
37.3%€13.87€3.61€3.5217

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/27 07:11
End of Day Share Price 2024/12/27 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Rakuten Group, Inc. is covered by 33 analysts. 12 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Yoshitsugu SasakiAizawa Securities Co. Ltd.
Keiichi YoneshimaBarclays
Hiroshi YamashinaBNP Paribas Securities (Asia)