<div id="readability-page-1"><div><ul> <li>If you are looking at SoftBank and wondering whether the current share price reflects its true worth, you are not alone. This article focuses squarely on what that price might imply about value.</li> <li>Over shorter periods the stock has been relatively steady, with returns of 0.7% over 7 days, 0.2% over 30 days and 0.3% year to date, while the 1 year, 3 year and 5 year returns sit at 16.8%, 68.7% and 105.5% respectively.</li> <li>Recent headlines have continued to frame SoftBank as a key name for investors tracking Japanese telecoms and related holdings. These stories help shape how the market thinks about its risk and potential. That context, together with the stock’s multi year return profile, provides useful background when you start asking whether the current price still makes sense.</li> <li>On our framework of six valuation checks, SoftBank scores 3 out of 6. This suggests some areas may appear cheap while others look more fully priced. Next we will look at the usual valuation methods before finishing with a way to assess value that can give a fuller picture.</li> </ul> <p>Find out why SoftBank's 16.8% return over the last year is lagging behind its peers.</p> <h3>Approach 1: SoftBank Discounted Cash Flow (DCF) Analysis</h3> <p>A DCF model takes forecasts of future cash flows and then discounts them back into today’s money to estimate what the whole business could be worth right now.</p> <p>For SoftBank, the latest twelve month free cash flow is about ¥560.6b. Analysts have provided explicit forecasts for several years, with Simply Wall St extending those projections further using its 2 Stage Free Cash Flow to Equity model. Within that path, projected free cash flow in 2030 is ¥603.0b, with intermediate years ranging between roughly ¥579.2b and ¥776.5b in the 10 year projection set.</p> <p>On these cash flow projections, the DCF model arrives at an estimated intrinsic value of ¥286.62 per share. Compared with the current share price, this implies a 24.4% discount, which indicates SoftBank is trading below this particular estimate of its underlying value.</p> <p><strong>Result: UNDERVALUED</strong></p> <p>Our Discounted Cash Flow (DCF) analysis suggests SoftBank is undervalued by 24.4%. Track this in your watchlist or portfolio, or discover 885 more undervalued stocks based on cash flows.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/f4c60b7f-0ab1-4e72-85b5-ae94bff45c2f/chart/dcf?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/f4c60b7f-0ab1-4e72-85b5-ae94bff45c2f/chart/dcf"/><figcaption>9434 Discounted Cash Flow as at Jan 2026</figcaption></figure> <p>Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for SoftBank.</p> <h3>Approach 2: SoftBank Price vs Earnings</h3> <p>For profitable companies, the P/E ratio is a useful way to relate what you pay for each share to the earnings that support it. It helps you see how many years of current earnings the market is effectively pricing in.</p> <p>What counts as a “normal” P/E depends a lot on growth expectations and risk. Higher expected earnings growth or lower perceived risk can justify a higher multiple, while slower growth or higher risk usually point to a lower, more conservative P/E.</p> <p>SoftBank currently trades on a P/E of 19.14x. That is above the peer group average of 13.99x and also slightly above the Wireless Telecom industry average of 18.54x. Simply Wall St’s Fair Ratio for SoftBank is 17.08x, which is its proprietary view of what a reasonable P/E might be once you factor in earnings growth characteristics, industry, profit margins, market cap and specific risks.</p> <p>The Fair Ratio is more tailored than a simple comparison with peers or the broad industry because it adjusts for those company specific features, rather than assuming all Wireless Telecom stocks deserve the same multiple. With SoftBank’s actual P/E sitting above the Fair Ratio by a clear margin, the shares screen as trading richer than this benchmark.</p> <p><strong>Result: OVERVALUED</strong></p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/f4c60b7f-0ab1-4e72-85b5-ae94bff45c2f/chart/pe-multiple-vs-industry?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/f4c60b7f-0ab1-4e72-85b5-ae94bff45c2f/chart/pe-multiple-vs-industry"/><figcaption>TSE:9434 P/E Ratio as at Jan 2026</figcaption></figure> <p>P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1443 companies where insiders are betting big on explosive growth.</p> <h3>Upgrade Your Decision Making: Choose your SoftBank Narrative</h3> <p>Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, which are simple stories you create about SoftBank that link your view of its future revenue, earnings and margins to a financial forecast, a fair value, and then a clear comparison with today’s share price.</p> <p>On Simply Wall St’s Community page, used by millions of investors, Narratives sit on top of the numbers you have already seen. They let you plug in your own expectations and see how your fair value stacks up against the current price to help you decide whether SoftBank looks closer to a buy, a hold or a sell for you. Those Narratives automatically refresh when new earnings or news are added so your view stays current without extra work.</p> <p>For example, one SoftBank Narrative might lean toward the higher ¥270.0 analyst price target with stronger confidence in AI, fintech and semiconductor exposure. Another might anchor near the lower ¥200.0 target with more focus on competition, costs and segment volatility. By comparing those different fair values with the latest ¥227.8 share price, you can quickly see which story feels more realistic for your own portfolio and risk tolerance.</p> <p>Do you think there's more to the story for SoftBank? Head over to our Community to see what others are saying!</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/f4c60b7f-0ab1-4e72-85b5-ae94bff45c2f/chart/quote-price?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/f4c60b7f-0ab1-4e72-85b5-ae94bff45c2f/chart/quote-price"/><figcaption>TSE:9434 1-Year Stock Price Chart</figcaption></figure> <p><em> This article by Simply Wall St is general in nature. <strong>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.</strong> 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.</em></p></div></div>

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<p>SoftBank's current share price raises questions about its true value after significant gains over the years. The stock has shown modest returns recently, with a 16.8% increase over the past year. A Discounted Cash Flow (DCF) analysis suggests the stock is undervalued by 24.4%, while a Price-to-Earnings (P/E) ratio indicates it is overvalued at 19.14x compared to industry averages. Investors are encouraged to consider their own narratives and expectations to assess whether SoftBank is a buy, hold, or sell.</p>

Is SoftBank (TSE:9434) Price Still Attractive After Strong Multi Year Share Gains