<div id="readability-page-1"><div><ul> <li>If you are wondering whether NTT’s current share price offers fair value or not, the key is to separate the recent noise from what the numbers actually say about the business.</li> <li>The stock last closed at ¥151.1, with returns of 4.9% over 1 year and 61.0% over 5 years. Over the past 30 days the share price shows a 5.0% decline, and the year-to-date return sits at a 5.3% decline.</li> <li>Recent coverage has focused on NTT’s position as a major telecom player in Japan and how it fits into ongoing sector discussions globally. This context has helped shape views on both its growth profile and the risks investors are weighing as the share price has moved.</li> <li>Right now NTT has a valuation score of 3 out of 6. Next up is a closer look at how traditional valuation methods assess the stock and how a broader valuation framework later in the article might give you an even clearer picture.</li> </ul> NTT delivered 4.9% returns over the last year. See how this stacks up to the rest of the Telecom industry. <h3>Approach 1: NTT Discounted Cash Flow (DCF) Analysis</h3> A Discounted Cash Flow, or DCF, model projects a company’s future cash flows and then discounts those amounts back to today to estimate what the entire business might be worth in present value terms. For NTT, the model used is a 2 Stage Free Cash Flow to Equity approach, based on cash flow projections in ¥. The latest twelve month free cash flow is ¥44,796.03b. Analyst inputs, combined with Simply Wall St extrapolations, project free cash flow out to 2035, with 10 year figures such as ¥715,989.03b in 2026 and ¥331,222.28b in 2035. These are all discounted back to today using the model’s assumptions. On this basis, the DCF model produces an estimated intrinsic value of ¥82.48 per share. Compared with the recent share price of ¥151.10, the model suggests the stock is 83.2% overvalued according to these inputs and assumptions. Result: OVERVALUED Our Discounted Cash Flow (DCF) analysis suggests NTT may be overvalued by 83.2%. Discover 14 high quality undervalued stocks or create your own screener to find better value opportunities. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for NTT. <h3>Approach 2: NTT Price vs Earnings</h3> For a profitable company like NTT, the P/E ratio is a useful way to relate what you pay for each share to the earnings that the business is currently generating. Investors typically accept a higher P/E when they expect stronger growth or view the business as lower risk, and a lower P/E when they see more uncertainty or slower growth. NTT is trading on a P/E of 11.44x. That sits below the Telecom industry average P/E of 17.93x and also below the peer group average of 15.69x. On the surface, that points to a lower earnings multiple than many comparable telecom names. Simply Wall St’s Fair Ratio for NTT is 13.15x. This is a proprietary estimate of what NTT’s P/E might be, taking into account factors such as its earnings growth profile, profit margins, industry, market cap and key risks. Because it blends these company specific drivers rather than relying only on broad peer or industry comparisons, it can give a more tailored sense of what a “normal” multiple could look like. With the actual P/E of 11.44x sitting below the Fair Ratio of 13.15x, NTT appears undervalued on this metric. Result: UNDERVALUED P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 12 top founder-led companies. <h2>Upgrade Your Decision Making: Choose your NTT Narrative</h2> Earlier it was mentioned that there is an even better way to understand valuation. Narratives on Simply Wall St give you a simple story behind the numbers where you set your view on NTT’s future revenue, earnings and margins, link that story to a forecast, see the fair value that drops out, and then compare it with today’s share price. The Community page keeps those Narratives automatically refreshed as new news or earnings arrive. This is why one investor might back a more optimistic NTT story with a fair value around ¥215.0 and another might prefer a cautious view closer to ¥146.0, all using the same tool. For NTT, however, we will make it really easy for you with previews of two leading NTT Narratives: 🐂 NTT Bull Case Fair value in this narrative: ¥175.64 Gap to this fair value versus the last close of ¥151.10: about 14.0% below that narrative fair value. Revenue growth assumption: 3.08% a year. <ul> <li>Focus is on growing global data centers, proprietary technologies such as IOWN and photonics, and higher margin managed services to support earnings and margins over time.</li> <li>Analysts in this camp build in steady revenue and margin expansion, share count reduction from buybacks, and a future P/E of 13.8x on forecast 2029 earnings.</li> <li>Key watchpoints include legacy fixed line decline, competition in mobile, overseas execution, heavy capex and whether integration across NTT DATA and other units can improve efficiency as assumed.</li> </ul> 🐻 NTT Bear Case Fair value in this narrative: ¥146.00 Gap to this fair value versus the last close of ¥151.10: about 3.5% above that narrative fair value. Revenue growth assumption: 2.38% a year. <ul> <li>This view highlights reliance on asset sales into REITs, Japan's aging population and rising capex as constraints on long run revenue and profit stability.</li> <li>Assumptions include more modest revenue and margin progress, a lower future P/E of 12.2x and a fair value that sits at the bearish end of the analyst range.</li> <li>The counter arguments that could challenge this stance center on continued demand for data centers and digital services, ongoing buybacks and dividends, and the potential for integration and R&amp;D efforts to lift growth and margins.</li> </ul> Do you think there's more to the story for NTT? Head over to our Community to see what others are saying! 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.</div></div>

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NTT's share price has seen a 5.0% decline over the past 30 days, closing at ¥151.1, with a year-to-date return of -5.3%. A Discounted Cash Flow (DCF) analysis suggests the stock is overvalued by 83.2%, estimating an intrinsic value of ¥82.48 per share. Conversely, the P/E ratio of 11.44x indicates it may be undervalued compared to industry averages. Different narratives suggest varying fair values for NTT, with a bullish case estimating ¥175.64, indicating potential upside from the current price.

Is NTT (TSE:9432) Share Price Weakness Offering A Fresh Look At Valuation