Nippon Telegraph and Telephone Corporation

DB:NTT Stock Report

Market Cap: €74.6b

Nippon Telegraph and Telephone Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: NTT (€0.9) is trading below our estimate of fair value (€1.45)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

NTT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.8x
Enterprise Value/EBITDA6.6x
PEG Ratio2.8x

Price to Earnings Ratio vs Peers

How does NTT's PE Ratio compare to its peers?

The above table shows the PE ratio for NTT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average51.4x
DTE Deutsche Telekom
27.8x17.0%€137.6b
O2D Telefónica Deutschland Holding
26.5x-41.1%€7.2b
O2D Telefónica Deutschland Holding
22.9x-11.4%€6.2b
UTDI United Internet
128.3x44.9%€3.3b
NTT Nippon Telegraph and Telephone
10.5x3.7%€12.4t

Price-To-Earnings vs Peers: NTT is good value based on its Price-To-Earnings Ratio (10.5x) compared to the peer average (51.4x).


Price to Earnings Ratio vs Industry

How does NTT's PE Ratio compare vs other companies in the European Telecom Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.4%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.4%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: NTT is good value based on its Price-To-Earnings Ratio (10.5x) compared to the European Telecom industry average (18.3x).


Price to Earnings Ratio vs Fair Ratio

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

NTT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.5x
Fair PE Ratio24.8x

Price-To-Earnings vs Fair Ratio: NTT is good value based on its Price-To-Earnings Ratio (10.5x) compared to the estimated Fair Price-To-Earnings Ratio (24.8x).


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 NTT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€0.90
€1.06
+17.3%
12.3%€1.44€0.93n/a12
Oct ’25€0.91
€1.10
+21.5%
12.0%€1.50€0.97n/a13
Sep ’25€0.96
€1.12
+16.3%
13.0%€1.47€0.95n/a15
Aug ’25€0.94
€1.05
+11.6%
12.3%€1.38€0.92n/a15
Jul ’25€0.90
€1.08
+19.7%
12.1%€1.39€0.93n/a15
Jun ’25€0.90
€1.10
+22.0%
11.7%€1.41€0.94n/a15
May ’25€1.01
€1.23
+22.4%
9.1%€1.49€1.07n/a15
Apr ’25€1.10
€1.23
+12.5%
9.1%€1.49€1.07n/a15
Mar ’25€1.11
€1.23
+10.5%
8.9%€1.47€1.06n/a16
Feb ’25€1.18
€1.26
+6.9%
8.6%€1.53€1.12n/a16
Jan ’25€1.09
€1.26
+15.1%
8.6%€1.53€1.12n/a16
Dec ’24€1.06
€1.19
+11.8%
10.3%€1.49€0.97n/a18
Nov ’24€1.10
€1.21
+10.5%
10.0%€1.53€0.99€0.9019
Oct ’24€1.10
€1.20
+9.5%
10.0%€1.52€0.99€0.9119
Sep ’24€1.06
€1.18
+11.3%
9.4%€1.52€0.99€0.9619
Aug ’24€1.01
€1.20
+18.0%
9.3%€1.54€1.00€0.9419
Jul ’24€1.11
€1.18
+6.3%
9.4%€1.52€0.99€0.9018
Jun ’24€1.06
€1.24
+16.9%
9.0%€1.61€1.04€0.9017
May ’24€1.11
€1.26
+12.8%
9.3%€1.64€1.07€1.0117
Apr ’24€1.09
€1.26
+15.9%
6.8%€1.45€1.07€1.1016
Mar ’24€1.08
€1.26
+17.3%
6.9%€1.45€1.07€1.1117
Feb ’24€1.09
€1.33
+21.5%
6.9%€1.52€1.13€1.1819
Jan ’24€1.06
€1.31
+23.4%
6.8%€1.49€1.11€1.0919
Dec ’23€1.07
€1.27
+19.4%
5.7%€1.45€1.16€1.0618
Nov ’23€1.10
€1.26
+14.0%
5.8%€1.43€1.15€1.1019

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


Discover undervalued companies