Stocks
SoftBank Group May Be Undervalued by 37% Amid AI-Driven Growth
SoftBank Group (TSE:9984) is gaining attention after its majority-owned SB Energy filed for a U.S. IPO, alongside a ¥1 trillion retail bond plan and commitments from Nvidia and OpenAI.
The company has seen an 8.36% year-to-date share price return, with a 29.31% one-year total shareholder return and a 219.30% three-year total shareholder return.
Despite a recent 90-day share price decline of 32.66%, investors are weighing the SB Energy IPO plans against SoftBank's growing AI and data center exposure.
A valuation analysis suggests that SoftBank Group could be 37.1% undervalued, with fair value estimated at ¥7,953.66 based on revenue growth, shrinking profitability, and a higher future earnings multiple.