NTT (TSE:9432): Examining Valuation and Growth Prospects for Long-Term Investors

NTT (TSE:9432) shares have seen modest movement this week, and recent trading suggests investors are scanning for signals on the company's longer-term direction. With steady returns over the past year, the stock's valuation warrants another look.

See our latest analysis for NTT.

NTT’s momentum has stayed positive, with a 1.20% share price return over the past month and a total shareholder return of 13.74% over the past year. The steady progress suggests that investors may see room for further growth, supported by consistent business performance and a strong long-term track record.

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With shares still trading at a discount to analyst targets and solid profit growth in recent years, the question for investors is whether NTT’s current valuation represents an opportunity or if future growth is already reflected in the price.

Most Popular Narrative: 10.8% Undervalued

NTT’s current share price sits notably below the most widely followed fair value estimate, highlighting a gap driven by projected profit expansion, margin improvement, and significant technology investments. These forward-looking assumptions underpin a valuation that stands apart from simple market momentum.

“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.

Curious what growth targets and margin projections are fueling this valuation? The financial roadmap includes bold assumptions that could reprice the whole sector. Unlock the full story to discover the pivotal metrics that shape this fair value estimate.

Result: Fair Value of ¥179 (UNDERVALUED)

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

However, persistent pressure on core mobile service revenues and organizational complexity could pose real challenges to NTT’s growth trajectory in the years ahead.

Find out about the key risks to this NTT narrative.

Build Your Own NTT Narrative

Not convinced by this perspective, or keen to form your own view based on fresh data? It only takes a few minutes to build your own insight. 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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