Toyota Motor Corporation

TSE:7203 Stock Report

Market Cap: JP¥36.4t

Toyota Motor Valuation

Is 7203 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 7203 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 7203 (¥2771.5) is trading above our estimate of fair value (¥2690)

Significantly Below Fair Value: 7203 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 7203?

Key metric: As 7203 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 7203. This is calculated by dividing 7203's market cap by their current earnings.
What is 7203's PE Ratio?
PE Ratio8.5x
EarningsJP¥4.26t
Market CapJP¥36.38t

Price to Earnings Ratio vs Peers

How does 7203's PE Ratio compare to its peers?

The above table shows the PE ratio for 7203 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average7.4x
7267 Honda Motor
5.8x4.4%JP¥5.7t
7269 Suzuki Motor
9.4x1.4%JP¥3.4t
7270 Subaru
4.8x-4.4%JP¥1.9t
7202 Isuzu Motors
9.6x6.1%JP¥1.5t
7203 Toyota Motor
8.5x0.4%JP¥36.4t

Price-To-Earnings vs Peers: 7203 is expensive based on its Price-To-Earnings Ratio (8.5x) compared to the peer average (7.4x).

Price to Earnings Ratio vs Industry

How does 7203's PE Ratio compare vs other companies in the Asian Auto Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
7203 8.5xIndustry Avg. 19.1xNo. of Companies10PE01224364860+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 7203 is good value based on its Price-To-Earnings Ratio (8.5x) compared to the Asian Auto industry average (19.1x).

Price to Earnings Ratio vs Fair Ratio

What is 7203'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.

7203 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.5x
Fair PE Ratio10.3x

Price-To-Earnings vs Fair Ratio: 7203 is good value based on its Price-To-Earnings Ratio (8.5x) compared to the estimated Fair Price-To-Earnings Ratio (10.3x).

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 7203 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥2,771.50
JP¥3,183.24
+14.9%
12.6%JP¥3,800.00JP¥2,400.00n/a17
Dec ’25JP¥2,551.50
JP¥3,250.88
+27.4%
10.8%JP¥3,800.00JP¥2,600.00n/a17
Nov ’25JP¥2,615.50
JP¥3,277.25
+25.3%
11.2%JP¥3,800.00JP¥2,600.00n/a17
Oct ’25JP¥2,596.00
JP¥3,371.14
+29.9%
11.3%JP¥3,800.00JP¥2,600.00n/a16
Sep ’25JP¥2,759.50
JP¥3,479.22
+26.1%
10.9%JP¥4,000.00JP¥2,600.00n/a15
Aug ’25JP¥2,699.00
JP¥3,686.67
+36.6%
8.3%JP¥4,100.00JP¥3,000.00n/a15
Jul ’25JP¥3,284.00
JP¥3,644.59
+11.0%
12.6%JP¥4,300.00JP¥2,700.00n/a17
Jun ’25JP¥3,401.00
JP¥3,679.88
+8.2%
12.0%JP¥4,300.00JP¥2,700.00n/a17
May ’25JP¥3,605.00
JP¥3,569.89
-1.0%
15.6%JP¥4,400.00JP¥2,300.00n/a18
Apr ’25JP¥3,639.00
JP¥3,493.78
-4.0%
16.1%JP¥4,400.00JP¥2,300.00n/a18
Mar ’25JP¥3,680.00
JP¥3,304.89
-10.2%
14.9%JP¥4,000.00JP¥2,300.00n/a18
Feb ’25JP¥2,945.00
JP¥3,038.22
+3.2%
11.4%JP¥3,500.00JP¥2,300.00n/a18
Jan ’25JP¥2,590.50
JP¥3,014.33
+16.4%
11.8%JP¥3,500.00JP¥2,300.00n/a18
Dec ’24JP¥2,833.00
JP¥2,969.89
+4.8%
11.8%JP¥3,400.00JP¥2,300.00JP¥2,551.5018
Nov ’24JP¥2,712.00
JP¥2,897.67
+6.8%
11.6%JP¥3,400.00JP¥2,200.00JP¥2,615.5018
Oct ’24JP¥2,677.50
JP¥2,810.00
+4.9%
12.1%JP¥3,350.00JP¥2,200.00JP¥2,596.0018
Sep ’24JP¥2,519.50
JP¥2,685.00
+6.6%
13.6%JP¥3,350.00JP¥2,050.00JP¥2,759.5018
Aug ’24JP¥2,445.50
JP¥2,593.33
+6.0%
14.5%JP¥3,350.00JP¥1,700.00JP¥2,699.0018
Jul ’24JP¥2,308.50
JP¥2,423.53
+5.0%
14.9%JP¥3,100.00JP¥1,700.00JP¥3,284.0017
Jun ’24JP¥1,943.00
JP¥2,229.41
+14.7%
12.0%JP¥2,650.00JP¥1,600.00JP¥3,401.0017
May ’24JP¥1,874.00
JP¥2,150.00
+14.7%
10.4%JP¥2,600.00JP¥1,600.00JP¥3,605.0017
Apr ’24JP¥1,880.00
JP¥2,164.71
+15.1%
10.0%JP¥2,600.00JP¥1,600.00JP¥3,639.0017
Mar ’24JP¥1,863.50
JP¥2,148.75
+15.3%
10.4%JP¥2,600.00JP¥1,600.00JP¥3,680.0016
Feb ’24JP¥1,903.00
JP¥2,161.25
+13.6%
10.0%JP¥2,600.00JP¥1,700.00JP¥2,945.0016
Jan ’24JP¥1,812.50
JP¥2,211.25
+22.0%
9.5%JP¥2,600.00JP¥1,700.00JP¥2,590.5016
Dec ’23JP¥1,998.50
JP¥2,272.22
+13.7%
9.4%JP¥2,600.00JP¥1,700.00JP¥2,833.0018

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 Analysis2024/12/21 20:43
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2024/03/31

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

Toyota Motor Corporation is covered by 51 analysts. 18 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Ronald TadrossBanc of America Securities
Ishan MajumdarBaptista Research
Kei NihonyanagiBarclays