SoftBank (TSE:9434): Evaluating Valuation After Recent Share Price Pullback and Strong Multi‑Year Returns

SoftBank (TSE:9434) has quietly slipped over the past week, even though its year to date return still looks solid. That mix of short term weakness and longer term strength is where the story starts.

See our latest analysis for SoftBank.

That recent 7 day share price return of minus 3.7 percent looks more like a breather than a trend change, given the 10 percent year to date share price gain and a robust 5 year total shareholder return above 100 percent suggests momentum has cooled but not reversed.

If SoftBank’s moves have you rethinking where the next leg of growth could come from, now could be a good time to explore fast growing stocks with high insider ownership.

With earnings still growing, a 24 percent estimated intrinsic discount, and analyst targets sitting above the current share price, the key question is whether SoftBank is genuinely undervalued or if the market already reflects its next leg of growth.

Most Popular Narrative: 8.1% Undervalued

With SoftBank’s shares at ¥216 versus a narrative fair value near ¥235, the valuation case leans positive, but the real driver sits beneath the headline.

Planned rollout of homegrown large language models (LLMs) and commercial GPU as a service targeting Japan based enterprises capitalizes on surging enterprise AI adoption, which is set to accelerate recurring revenues and support margin expansion from higher value digital infrastructure services.

Read the complete narrative.

Curious how modest revenue growth, rising margins, and a dialed back future earnings multiple can still justify upside from here? The narrative’s cash flow path is anything but ordinary. Want to see which growth levers and profitability targets are doing the heavy lifting in that valuation math? Read on to unpack the full story behind this fair value.

Result: Fair Value of ¥234.93 (UNDERVALUED)

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

However, sustained price pressure in Japan’s saturated wireless market, along with heavy AI data center capex, could squeeze margins enough to derail that upside path.

Find out about the key risks to this SoftBank narrative.

Build Your Own SoftBank Narrative

If this view does not quite match your own, or you prefer digging through the numbers yourself, you can build a personalized narrative in minutes: Do it your way.

A great starting point for your SoftBank research is our analysis highlighting 3 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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