Nomura (TSE:8604): Examining Valuation After Denial of India Unit Probe Report

Nomura Holdings (TSE:8604) pushed back against a Bloomberg report alleging an internal probe into profit inflation within its India fixed-income unit. The company firmly stated there is no compliance investigation or identified issues.

See our latest analysis for Nomura Holdings.

Nomura’s swift rebuttal comes on the heels of strong momentum for shareholders. The stock’s year-to-date share price return sits at 22.3%, and its one-year total shareholder return of 28.4% points to solid performance even as news headlines occasionally test investor sentiment. With a three-year total return exceeding 150%, longer-term holders have seen substantial gains despite intermittent volatility.

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With these numbers in mind, the real question is whether Nomura’s impressive return streak means investors are still getting a bargain or if recent gains reflect that markets have already priced in all the company’s future potential.

Most Popular Narrative: 3.1% Undervalued

With Nomura Holdings closing at ¥1,124 and the most popular narrative assigning a fair value of ¥1,160, the gap signals modest upside potential for investors as of today. This perspective stands out for its detailed look at trends shaping Nomura's valuation, setting up a closer look at the anticipated drivers behind the stock's price target.

"Strong wealth and asset management growth, digital innovation, global expansion, resilient advisory demand, and cost discipline position Nomura for long-term stable and diversified earnings."

Read the complete narrative.

Curious what’s fueling these bold fair value calculations? Hint: long-term earnings, margin forecasts, and sector-shifting business moves. Discover which financial levers the narrative is focusing on for Nomura’s next phase of growth.

Result: Fair Value of ¥1,160 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing digital transformation and resilient inflows into asset management could boost long-term revenues, which challenges predictions of shrinking margins and weaker domestic growth.

Find out about the key risks to this Nomura Holdings narrative.

Build Your Own Nomura Holdings Narrative

If you’re keen to interpret the numbers differently or want to dive deeper with your own insights, you can generate a personalized narrative in just a few minutes. Do it your way

A great starting point for your Nomura Holdings research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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