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KDDI Corporation (KDDIY) Fair Value & Analysis

Communication Services · US · Market cap $64.1B

KC KDDI Corporation logo KDDI Corporation KDDIY · US
Price$17.72
Fair Value$26.96
Upside+52.1%
Quality63/100
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Healthy Growth
Solidly profitable · 11.7% net margin
Low debt · generates free cash flow
3.06% dividend yield
Ranks above peers (9/12)
Moderate moat 61/100
Evidence: High Range $18.25 – $34.12 Share as image

Fair value as of: Aug 13, 2026

From 23 valuation models · updated today

Fair value updated Aug 13, 2026, revised from $26.80 to $26.96 (+0.6%) since Jul 19, 2026. Share price +1.1% over the past month.

A solid business, screening 52% undervalued on our models.

What matters now

  • The price is below even our cautious bear case ($18.25). The market is more pessimistic than our downside scenario.
  • Solid quality (63/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range ($18.25 to $34.12) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

$19.09 $12.15 Fair Value $26.96 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range $12.15 – $19.09 · fair‑value band $18.25 – $34.12 · the $17.72 price screens below the $26.96 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

KDDI Corporation (KDDIY) currently trades at $17.72, while our model-based Fair Value estimate is $26.96, implying the stock looks roughly 52.1% undervalued today. The Quality Score stands at 63/100 (solid quality), in the Communication Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, KDDI Corporation generated revenue of $6.1T at a net margin of 11.7%. Revenue grew 8.8% year over year. It earns a return on equity of 14.0%. Net debt stands at $4.3T. Fundamentals as of Aug 13, 2026

Our scenario range runs from $18.25 (bear case) to $34.12 (bull case); at $17.72, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 18% above its 52-week low, currently above its 200-day average. For context, the median of 10 Communication Services peers we cover trades at 30% fair-value upside, at 52%, KDDIY screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF $21.05 $30.32 $42.97 80
Rev-Margin DCF $16.16 $24.97 $34.48 74
ROIC Compounder $10.23 $13.04 $16.27 72
All 23 models by family
DCF Models
FCF DCF $20.40 $30.37 $44.60 38
Owner Earnings $16.36 $24.53 $36.20 31
5Y Revenue Exit $16.16 $24.68 $35.09 39
5Y EBITDA Exit $21.39 $33.99 $48.03 41
5Y P/E Exit $17.44 $26.96 $36.39 38
10Y Revenue Exit $17.06 $24.97 $34.62 36
10Y EBITDA Exit $20.82 $31.27 $44.06 37
10Y P/E Exit $18.34 $26.51 $35.57 35
Earnings-Based
Graham-Dodd $8.35 $19.67 $25.33 54
PEG = 1.0 $3.39 $4.84 $6.29 46
EPV $9.99 $11.99 $13.73 59
Multiples
P/E Multiple $20.27 $27.02 $33.78 63
P/S Multiple $15.66 $20.88 $26.10 58
P/B Multiple $15.66 $20.88 $26.10 55
EV/EBIT $20.13 $27.51 $34.88 53
EV/EBITDA $25.36 $34.48 $43.60 54
EV/Revenue $14.79 $21.98 $29.17 43
Asset-Based
NCAV (Graham) $4.18 $5.60 $8.35 50
Growth DCF
Growth DCF $21.05 $30.32 $42.97 80
Rev-Margin DCF $16.16 $24.97 $34.48 74
Economic Profit
Residual Income $8.29 $10.76 $27.92 61
ROIC Compounder $10.23 $13.04 $16.27 72
Growth Earnings
Growth-Adj P/E $15.30 $21.86 $28.42 68

Widest divergence: DCF Models ($26.51) versus Asset-Based ($5.60). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) $6.1T
Revenue growth (YoY) +8.8%
Net margin 11.7%
Return on equity 14.0%
Free cash flow $1.3T FY2026
P/E ratio 15.4
More key figures
Operating margin 14.7%
EPS (TTM) $1.15
Dividend yield 3.1%
EPS growth (YoY) +42.2%
Net debt $4.3T FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 63/100

Of which business quality 61 · Market factors (momentum, volatility) 66

Profitability 38
Margins and returns on capital today
Quality Growth 46
Are margins and returns improving?
Cashflow 85
Earnings quality: real cash, not paper profit
Fin. Strength 42
Balance sheet, leverage, solvency risk
Investment 63
Disciplined investing over empire-building
Low Volatility 90
Calm price path (market factor)
Momentum 49
Price trend over the last 3–12 months (market factor)
52W Momentum 69
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

KDDI Corporation engages in the provision of mobile telecommunications services in Japan and internationally. It operates in two segments, Personal Services and Business Services.

Full company description

KDDI Corporation engages in the provision of mobile telecommunications services in Japan and internationally. It operates in two segments, Personal Services and Business Services. The Personal Services segment offers 5G telecommunication services and other services, such as finance, energy, and LX through its multi-brands comprising au, UQ mobile, and povo; and entertainment services, including video and games to individual customers. The Business Services segment provides smartphones and other devices, network and cloud services, and data center services to corporate customers under the TELEHOUSE brand name. It is also involved in the provision of solutions for the development and expansion of businesses through IoT, DX, generative AI, and other technology centered on 5G communications. The company was incorporated in 1984 and is headquartered in Tokyo, Japan.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

KDDI Corporation reported revenue of $6.4T in FY2026 versus $5.4T in FY2022, a compound +4.3%/yr. Reported net income was $750B in FY2026, compounding +2.8%/yr from FY2022.

Growth Quality 76/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
$6.4T
Latest YoY
+8.8%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.3%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+3.9%
Avg. growth/yr (29Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+6.6%
Revenue +4.3%/yr
FY22 $5.4T
FY23 $5.7T
FY24 $5.8T
FY25 $5.9T
FY26 $6.4T
Net income +2.8%/yr
FY22 $672B
FY23 $679B
FY24 $638B
FY25 $686B
FY26 $750B
Character of growth · EPS growth decomposed (2015-2026) +6.3 % p.a.
Revenue per share +5.5 pp

of which total revenue +3.1 pp · buybacks/dilution +2.4 pp

EBIT margin −0.2 pp
Tax rate +0.2 pp
Residual (interest, one-offs) +0.9 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "KDDI Corporation Fair Value". https://www.fairvalue-calculator.com/stock/KDDIY

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Telecom Services · 253 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 63 · Top 25%
Fair Value upside +52% · Top 25%
Return on equity (TTM) 14% · Above median
Return on assets 4% · Above median
Net margin (TTM) 12% · Above median
Operating margin (TTM) 15% · Above median
Revenue growth 9% · Above median
Dividend yield (TTM) 3.1% · Below median
Debt / equity 0.45× · Higher than median

Valuation Multiples vs Telecom Services median · lower = cheaper

P/E (TTM) 15.4× · Cheaper than median
P/FCF 0.1× · Cheaper than 75% of peers
PEG 1.67× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 27
FUTURE 44 · sector 15
PAST 56 · sector 27
HEALTH 77 · sector 89
DIVIDEND 61 · sector 71

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Telecom Services stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
China Mobile Limited 600941 ¥96.11 ¥109.88 +14%
Bharti Airtel Limited BHARTIARTL ₹1,945 ₹941.55 -52%
China Telecom Corporation 601728 ¥6.43 ¥8.36 +30%
América Móvil, S.A. AMXB 23.07 MXN 30.35 MXN +32%
Vodafone Group VODN 259.50 MXN 494.99 MXN +91%
Advanced Info Service Public Company ADVANC 374.00 THB 286.77 THB -23%
Chunghwa Telecom Co 2412 136.00 TWD 100.00 TWD -26%
Telefónica, S.A TEFN 75.67 MXN 108.96 MXN +44%
TLKM TLKM 2,590 IDR 3,898 IDR +50%
PT Indoritel Makmur Internasional Tbk., DNET 9,500 IDR 1,503 IDR -84%

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Frequently asked questions

Is KDDI Corporation (KDDIY) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of $26.96 versus a price of $17.72, about +52% (undervalued).
What is the fair value of KDDIY?
Our model-based fair value for KDDI Corporation is $26.96 (as of Aug 13, 2026), built from audited fundamentals. The current price is $17.72.
What is the quality score of KDDIY?
KDDI Corporation has a Quality Score of 63/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of KDDI Corporation (KDDIY)?
KDDI Corporation reported trailing-twelve-month revenue of about $6.1T (latest available figure, as of Aug 13, 2026).
What is the net profit margin of KDDIY?
The net profit margin of KDDI Corporation is about 11.7%, meaning it keeps roughly 11.7% of revenue as net income. Based on the latest reported figures.
Does KDDI Corporation pay a dividend?
KDDI Corporation currently shows a dividend yield of about 3.06% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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