Assessing NTT DATA Group (OTCPK:NTDT.Y) Valuation After New AWS AI Cloud Collaboration

NTT DATA Group (OTCPK:NTDT.Y) is back in focus after announcing a multi-year collaboration with Amazon Web Services, aimed at modernizing legacy systems, expanding AI usage and supporting regulated industry cloud solutions.

See our latest analysis for NTT DATA Group.

The AWS agreement lands just after NTT DATA Group’s Q3 2026 earnings call and ahead of its Medallia Experience 2026 appearance. This comes at a time when the share price is US$24.00 with a 1-year total shareholder return of 27.59% and 5-year total shareholder return of 74.93%. However, shorter term share price returns such as the recent 1-day and 7-day declines suggest momentum has cooled in the near term.

If this AI focused collaboration has caught your attention, it could be a good moment to see what else is shaping the theme through our screener of 57 profitable AI stocks that aren't just burning cash.

With the stock up 27.59% over the past year and 74.93% over five years, but recent 1-day and 7-day returns slightly negative, is NTT DATA Group still mispriced, or is the market already baking in future growth?

Price-to-Earnings of 28.6x: Is it justified?

On a P/E of 28.6x at a last close of $24.00, NTT DATA Group sits in an interesting middle ground, looking slightly cheaper than the broader US IT sector but richer than its closest peers.

The P/E ratio compares the company’s share price to its earnings per share. In other words, it shows how many dollars investors are willing to pay for each dollar of current earnings. For a global IT and business services provider with forecast earnings growth and recent momentum in profitability, this kind of earnings multiple often reflects what the market is willing to pay for stability and potential future cash generation in the sector.

Here, NTT DATA Group screens as good value versus the US IT industry, with its 28.6x P/E sitting just below the 29.7x industry average. However, it appears expensive compared to a 21.6x peer average. At the same time, the estimated fair P/E of 33.3x is higher than where the stock trades today. If sentiment were to move closer to that fair ratio level, the market multiple could adjust upward from current levels.

Explore the SWS fair ratio for NTT DATA Group

Result: Price-to-Earnings of 28.6x (ABOUT RIGHT)

However, you also have to weigh softer recent momentum, with 1-day and 7-day returns slightly negative, and a relatively high 28.6x P/E that leaves less margin for disappointment.

Find out about the key risks to this NTT DATA Group narrative.

Build Your Own NTT DATA Group Narrative

If you see the story differently or prefer to rely on your own research, you can build a complete view in just a few minutes with Do it your way.

A great starting point for your NTT DATA Group 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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