TM PE Ratio & Valuation,Is TM Overvalued

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 13.35 is considered Undervalued compared with the five-year average of 9.89. The fair price of Toyota Motor Corp (TM) is between 379.46 to 465.52 according to relative valuation methord. Compared to the current price of 214.40 USD , Toyota Motor Corp is Undervalued By 43.5%.

Relative Value

Fair Zone

379.46-465.52

Current Price：214.40

43.5%

Undervalued

13.35

10.37

EV/EBITDA

Toyota Motor Corp. (TM) has a current EV/EBITDA of 10.37. The 5-year average EV/EBITDA is 10.49. The thresholds are as follows: Strongly Undervalued below 8.05, Undervalued between 8.05 and 9.27, Fairly Valued between 11.71 and 9.27, Overvalued between 11.71 and 12.93, and Strongly Overvalued above 12.93. The current Forward EV/EBITDA of 10.37 falls within the Historic Trend Line -Fairly Valued range.

15.72

EV/EBIT

Toyota Motor Corp. (TM) has a current EV/EBIT of 15.72. The 5-year average EV/EBIT is 19.29. The thresholds are as follows: Strongly Undervalued below -6.83, Undervalued between -6.83 and 6.23, Fairly Valued between 32.35 and 6.23, Overvalued between 32.35 and 45.41, and Strongly Overvalued above 45.41. The current Forward EV/EBIT of 15.72 falls within the Historic Trend Line -Fairly Valued range.

0.85

Toyota Motor Corp. (TM) has a current PS of 0.85. The 5-year average PS is 0.91. The thresholds are as follows: Strongly Undervalued below 0.20, Undervalued between 0.20 and 0.56, Fairly Valued between 1.27 and 0.56, Overvalued between 1.27 and 1.63, and Strongly Overvalued above 1.63. The current Forward PS of 0.85 falls within the Historic Trend Line -Fairly Valued range.

9.62

P/OCF

Toyota Motor Corp. (TM) has a current P/OCF of 9.62. The 5-year average P/OCF is 8.74. The thresholds are as follows: Strongly Undervalued below 4.58, Undervalued between 4.58 and 6.66, Fairly Valued between 10.82 and 6.66, Overvalued between 10.82 and 12.89, and Strongly Overvalued above 12.89. The current Forward P/OCF of 9.62 falls within the Historic Trend Line -Fairly Valued range.

19.44

P/FCF

Toyota Motor Corp. (TM) has a current P/FCF of 19.44. The 5-year average P/FCF is 20.27. The thresholds are as follows: Strongly Undervalued below -8.63, Undervalued between -8.63 and 5.82, Fairly Valued between 34.72 and 5.82, Overvalued between 34.72 and 49.17, and Strongly Overvalued above 49.17. The current Forward P/FCF of 19.44 falls within the Historic Trend Line -Fairly Valued range.

Toyota Motor Corp (TM) has a current Price-to-Book (P/B) ratio of 1.19. Compared to its 3-year average P/B ratio of 1.66 , the current P/B ratio is approximately -28.68% higher. Relative to its 5-year average P/B ratio of 1.43, the current P/B ratio is about -17.37% higher. Toyota Motor Corp (TM) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of -1.72%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of -1.47% , the current FCF yield is about -100.00% lower.

1.19

P/B

Median3y

1.66

Median5y

1.43

0.80

FCF Yield

Median3y

-1.72

Median5y

-1.47

Competitors Valuation Multiple

The average P/S ratio for TM's competitors is 4.39, providing a benchmark for relative valuation. Toyota Motor Corp Corp (TM) exhibits a P/S ratio of , which is -100% above the industry average. Given its robust revenue growth of 9.38%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of TM increased by 12.91% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 4.38 to 7.86.

The secondary factor is the Revenue Growth, contributed 9.38%to the performance.

Overall, the performance of TM in the past 1 year is driven by Margin Expansion. Which is more sustainable.

9.38%

76.75B → 83.95B

Revenue Growth

79.45%

4.38 → 7.86

Margin Expansion

-75.92%

39.95 → 9.62

P/E Change

12.91%

188.93 → 213.33

Mkt Cap Growth

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Frequently Asked Questions

Is Toyota Motor Corp (TM) currently overvalued or undervalued?

What is Toyota Motor Corp (TM) fair value?

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. The fair price of Toyota Motor Corp (TM) is between 379.46 to 465.52 according to relative valuation methord.

How does TM's valuation metrics compare to the industry average?

The average P/S ratio for TM's competitors is 4.39, providing a benchmark for relative valuation. Toyota Motor Corp Corp (TM) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 9.38%, this premium appears unsustainable.

What is the current P/B ratio for Toyota Motor Corp (TM) as of Jan 09 2026?

As of Jan 09 2026, Toyota Motor Corp (TM) has a P/B ratio of 1.19. This indicates that the market values TM at 1.19 times its book value.

What is the current FCF Yield for Toyota Motor Corp (TM) as of Jan 09 2026?

As of Jan 09 2026, Toyota Motor Corp (TM) has a FCF Yield of 0.00%. This means that for every dollar of Toyota Motor Corp’s market capitalization, the company generates 0.00 cents in free cash flow.

What is the current Forward P/E ratio for Toyota Motor Corp (TM) as of Jan 09 2026?

As of Jan 09 2026, Toyota Motor Corp (TM) has a Forward P/E ratio of 13.35. This means the market is willing to pay $13.35 for every dollar of Toyota Motor Corp’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Toyota Motor Corp (TM) as of Jan 09 2026?

As of Jan 09 2026, Toyota Motor Corp (TM) has a Forward P/S ratio of 0.00. This means the market is valuing TM at $0.00 for every dollar of expected revenue over the next 12 months.

TM Valuation