NTT (TSE:9432): Reassessing Valuation as Long-Term Growth Outpaces Recent Share Price Performance

NTT (TSE:9432) has been edging lower over the past month even as its long term track record and steady earnings growth remain intact. This sets up an interesting moment to reassess the stock.

See our latest analysis for NTT.

At ¥155.7, NTT’s modest 7 day share price gain contrasts with a slightly negative year to date share price return, while a solid five year total shareholder return signals that long term momentum remains constructive rather than broken.

If you are weighing NTT against other opportunities, this could be a smart moment to see what else fits your strategy with fast growing stocks with high insider ownership.

With earnings still rising and the share price lagging its analyst target and intrinsic value estimates, is NTT quietly trading at a discount, or is the market already fully pricing in its future growth?

Most Popular Narrative Narrative: 13.1% Undervalued

Compared with NTT’s last close at ¥155.7, the most followed narrative sees room for upside based on steady growth and disciplined capital allocation.

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.

Want to see how modest top line expansion, rising margins and a reset valuation multiple combine into this upside case? The full narrative reveals the playbook.

Result: Fair Value of ¥179.14 (UNDERVALUED)

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

However, persistent mobile revenue pressure at DOCOMO and heavy capital spending for data centers and next generation networks could constrain margins and free cash flow.

Find out about the key risks to this NTT narrative.

Build Your Own NTT Narrative

If you see the story differently or want to test your own assumptions against the data, you can build a personalized thesis in minutes with Do it your way.

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

Ready for your next investing move?

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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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