A Look at NTT (TSE:9432) Valuation Following Japan’s Telecom Sector Reform Announcement

The Japanese government's recent announcement of telecom sector reforms has caught the market’s attention. These changes are set to boost competition and efficiency, and as a result, NTT (TSE:9432) saw its stock attract strong investor interest.

See our latest analysis for NTT.

NTT’s share price has responded positively to the latest reform news, building on a recent stretch of cautious momentum. After a 3.6% gain over the past week and a one-year total shareholder return of 11.4%, investors are clearly becoming more optimistic about its potential. Sector changes could unlock further value for long-term holders.

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Despite current optimism, investors now face a critical question: is NTT’s value still underappreciated given its fundamentals, or is the market already pricing in all future growth and reform upside as shares climb higher?

Most Popular Narrative: 11.6% Undervalued

NTT’s most popular narrative puts its fair value meaningfully above the last close, suggesting analysts see room for further upside at current prices. With consensus forecasts serving as the backbone of this view, let's take a look at what’s driving such conviction.

NTT's investment in proprietary technologies (e.g., IOWN, advanced LLMs like tsuzumi 2, and photonics) positions it to benefit from surging connectivity and low-latency compute requirements driven by the global rollout of 5G/6G and edge computing. These developments underpin sustainable earnings growth and an expanded addressable market for high-value services, supporting future margin and EBIT expansion.

Read the complete narrative.

Think the price target is ambitious? The heart of this narrative lies in bold projections, driven by transformative tech bets and higher profit margins. Get the full inside story—the key financial forecasts may surprise you.

Result: Fair Value of ¥179 (UNDERVALUED)

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

However, declining mobile revenues and high capital spending could pressure NTT's margins. This poses real questions about how quickly growth might materialize for investors.

Find out about the key risks to this NTT narrative.

Build Your Own NTT Narrative

If you’re looking for a different angle or want to dig into the numbers on your own terms, you can shape your own perspective in just a few minutes. Do it your way.

A great starting point for your NTT research is our analysis highlighting 4 key rewards and 1 important warning sign 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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