TM Valuation

Toyota Motor Corp

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194.570

-3.68(-1.856%)1D

Overview
Forecast
Valuation
Earnings

TM Relative Valuation

TM's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, TM is overvalued; if below, it's undervalued.

Historical Valuation

Toyota Motor Corp (TM) is now in the Undervalued zone, suggesting that its current forward PE ratio of 10.41 is considered Undervalued compared with the five-year average of 10.12. The fair price of Toyota Motor Corp (TM) is between 11748.14 to 11830.43 according to relative valuation methord. Compared to the current price of 198.25 USD , Toyota Motor Corp is Undervalued By 98.31%.

Relative Value

Fair Zone

11748.14-11830.43

Current Price：198.25

98.31%

Undervalued

10.21

Trailing

Forward

11.68

EV/EBITDA

Toyota Motor Corp. (TM) has a current EV/EBITDA of 11.68. The 5-year average EV/EBITDA is 10.61. The thresholds are as follows: Strongly Undervalued below 7.99, Undervalued between 7.99 and 9.30, Fairly Valued between 11.92 and 9.30, Overvalued between 11.92 and 13.23, and Strongly Overvalued above 13.23. The current Forward EV/EBITDA of 11.68 falls within the Historic Trend Line -Fairly Valued range.

16.61

EV/EBIT

Toyota Motor Corp. (TM) has a current EV/EBIT of 16.61. The 5-year average EV/EBIT is 19.34. The thresholds are as follows: Strongly Undervalued below -6.76, Undervalued between -6.76 and 6.29, Fairly Valued between 32.39 and 6.29, Overvalued between 32.39 and 45.44, and Strongly Overvalued above 45.44. The current Forward EV/EBIT of 16.61 falls within the Historic Trend Line -Fairly Valued range.

0.76

Toyota Motor Corp. (TM) has a current PS of 0.76. The 5-year average PS is 0.91. The thresholds are as follows: Strongly Undervalued below 0.19, Undervalued between 0.19 and 0.55, Fairly Valued between 1.27 and 0.55, Overvalued between 1.27 and 1.63, and Strongly Overvalued above 1.63. The current Forward PS of 0.76 falls within the Historic Trend Line -Fairly Valued range.

7.77

P/OCF

Toyota Motor Corp. (TM) has a current P/OCF of 7.77. The 5-year average P/OCF is 8.62. The thresholds are as follows: Strongly Undervalued below 4.40, Undervalued between 4.40 and 6.51, Fairly Valued between 10.73 and 6.51, Overvalued between 10.73 and 12.84, and Strongly Overvalued above 12.84. The current Forward P/OCF of 7.77 falls within the Historic Trend Line -Fairly Valued range.

23.55

P/FCF

Toyota Motor Corp. (TM) has a current P/FCF of 23.55. The 5-year average P/FCF is 20.23. The thresholds are as follows: Strongly Undervalued below -8.67, Undervalued between -8.67 and 5.78, Fairly Valued between 34.68 and 5.78, Overvalued between 34.68 and 49.12, and Strongly Overvalued above 49.12. The current Forward P/FCF of 23.55 falls within the Historic Trend Line -Fairly Valued range.

Toyota Motor Corp (TM) has a current Price-to-Book (P/B) ratio of 10.57. Compared to its 3-year average P/B ratio of 1.48 , the current P/B ratio is approximately 613.12% higher. Relative to its 5-year average P/B ratio of 1.33, the current P/B ratio is about 697.72% higher. Toyota Motor Corp (TM) has a Forward Free Cash Flow (FCF) yield of approximately 0.65%. Compared to its 3-year average FCF yield of -1.70%, the current FCF yield is approximately -138.07% lower. Relative to its 5-year average FCF yield of -1.66% , the current FCF yield is about -139.10% lower.

10.34

P/B

Median3y

1.48

Median5y

1.33

0.66

FCF Yield

Median3y

-1.70

Median5y

-1.66

Competitors Valuation Multiple

The average P/S ratio for TM's competitors is 4.71, providing a benchmark for relative valuation. Toyota Motor Corp Corp (TM) exhibits a P/S ratio of 0.76, which is -83.95% above the industry average. Given its robust revenue growth of 11.54%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of TM increased by 2.51% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 68.08 to 87.93.

The secondary factor is the Revenue Growth, contributed 11.54%to the performance.

Overall, the performance of TM in the past 1 year is driven by P/E Change. Which is more unsustainable.

11.54%

75.96B → 84.72B

Revenue Growth

-38.19%

11.52 → 7.12

Margin Expansion

29.16%

68.08 → 87.93

P/E Change

2.51%