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Toyota Motor Corporation (TM) Fair Value & Analysis

Consumer Cyclical · US · Market cap $213B · ISIN US8923313071

What is Toyota Motor Corporation really worth?

TM Toyota Motor Corporation TM · NYSE
Price from Aug 19, 2026$188.78
Fair Value$228.25
Upside+20.9%
Quality46/100

Below-average quality, trading 17% below our fair value of $228.25.

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Strengths

Moderate debt · generates free cash flow
Ranks above peers (11/15)

Risks

!Expensive Growth (revenue 5y +13.2 %/yr)
!Thin margins · 7.6% net margin
!Moderate moat 52/100
!Weak on future: 10 out of 100

For context

·3.54% dividend yield
Evidence: High Range $196.77 – $434.32

Fair value as of: Aug 28, 2026

From 24 valuation models · updated 7 days ago

Share price +5.7% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price is below even our cautious bear case ($196.77). The market is more pessimistic than our downside scenario.
  • Solid quality (46/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range ($196.77 to $434.32) leaves room in how you read the outcome.

Price vs Fair Value (12 months)

$192.84 $166.50 Fair Value $228.25 Aug 2026

White line = price, green steps = our fair value per fiscal year. As of Aug 28, 2026.

How to read this chart

12‑month range $166.50 – $192.84 · fair‑value band $196.77 – $434.32 · the $188.78 price screens below the $228.25 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Aug 28, 2026.

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Analysis

Toyota Motor Corporation (TM) currently trades at $188.78, while our model-based Fair Value estimate is $228.25, implying the stock looks roughly 17.3% undervalued today. The Quality Score stands at 46/100 (below-average quality), in the Consumer Cyclical sector. Bull case: the Growth Earnings group reads highest at a median of $491.45 per share, and 15 of the 22 models we run sit above the $188.78 price. Bear case: the Economic Profit group reads lowest at $109.03, and 7 of the 22 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Toyota Motor Corporation generated revenue of ¥50.7T at a net margin of 7.6%. Revenue grew 1.9% year over year. It earns a return on equity of 10.2%. Net debt stands at ¥30.7T. Fundamentals as of Aug 28, 2026

Our scenario range runs from $196.77 (bear case) to $434.32 (bull case); at $188.78, 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 about 24% below its 52-week high and 15% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at −17% fair-value upside, at 21%, TM screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

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
FCF DCF best evidence $28.08 77
Growth DCF $20.57 75
EPV $80.14 $109.03 $134.72 74
All 24 models by family
DCF Models
FCF DCF best evidence $28.08 77
Owner Earnings $16.69 $73.73 $163.80 69
5Y Revenue Exit $71.56 $192.32 $348.32 68
5Y EBITDA Exit $147.77 $333.38 $550.81 72
5Y P/E Exit $182.19 $397.11 $622.51 68
10Y Revenue Exit $25.64 $128.61 $269.48 60
10Y EBITDA Exit $82.11 $228.25 $426.08 64
10Y P/E Exit $104.46 $273.26 $481.54 60
Earnings-Based
Graham-Dodd $175.50 $516.82 $683.45 65
Lynch FV $108.22 $154.60 $200.97 61
PEG = 1.0 $108.22 $154.60 $200.97 57
EPV $80.14 $109.03 $134.72 74
Multiples
P/E Multiple $425.85 $567.79 $709.74 63
P/S Multiple $295.38 $393.84 $492.30 58
P/B Multiple $329.06 $438.75 $548.44 55
EV/EBIT $245.63 $355.38 $465.12 65
EV/EBITDA $283.73 $406.17 $528.61 67
EV/Revenue $138.33 $233.44 $328.55 52
Asset-Based
NCAV (Graham) $129.80 $173.94 $259.61 54
Growth DCF
Growth DCF $20.57 75
Rev-Margin DCF $71.56 $189.46 $321.51 69
Economic Profit
Residual Income $231.46 $258.93 $437.78 69
ROIC Compounder $80.14 $109.03 $134.72 72
Growth Earnings
Growth-Adj P/E $344.01 $491.45 $638.88 67

Widest divergence: Growth Earnings ($491.45) versus Economic Profit ($109.03). Highest evidence: FCF DCF (77).

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Key figures & financial health

P/E ratio 10.3
P/S ratio 0.81 P/E × margin
EPS (TTM) $18.26 price ÷ EPS = P/E 10.3
Dividend yield 3.5% payout 36.6%
Net margin 7.9% FY2026
Return on equity 10.2% TTM
More key figures
Profitability
Return on assets (EBIT) 4.5% avg 5y
Operating margin 4.6% TTM
Growth
Revenue (TTM) ¥50.7T TTM
Revenue growth (YoY) +1.9% 3y avg +10.9%
EPS growth (YoY) +23.2%
Balance sheet & cash flow
Free cash flow ¥592B FY2026
Net debt ¥30.7T FY2026 · ≈ 51.8 yrs of FCF

Figures from reported company fundamentals · as of Aug 28, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 46/100

Of which business quality 45 · Market factors (momentum, volatility) 68

Profitability 33
Margins and returns on capital today
Quality Growth 29
Are margins and returns improving?
Cashflow 33
Earnings quality: real cash, not paper profit
Fin. Strength 49
Balance sheet, leverage, solvency risk
Investment 43
Disciplined investing over empire-building
Low Volatility 100
Calm price path (market factor)
52W Momentum 31
Distance to the 52-week high (market factor)
Net Issuance 92
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Toyota Motor Corporation designs, manufactures, assembles, and sells passenger vehicles, minivans and commercial vehicles, and related parts and accessories in Japan, North America, Europe, Asia, Central and South America, Oceania, Africa, the Middle East, and internationally.

Full company description

Toyota Motor Corporation designs, manufactures, assembles, and sells passenger vehicles, minivans and commercial vehicles, and related parts and accessories in Japan, North America, Europe, Asia, Central and South America, Oceania, Africa, the Middle East, and internationally. The company operates through Automotive, Financial Services, and All Other segments. The company offers subcompact and compact cars; mini-vehicles; mid-size, luxury, sports, and specialty cars; recreational and sport-utility vehicles; pickup trucks; minivans; trucks; and buses. It also develops and sells battery and hybrid electric vehicles and batteries. In addition, the company provides financial services, such as retail financing and leasing, wholesale financing, insurance, and credit cards. Further, it operates GAZOO.com, a web portal for automobile information, as well as engages in telecommunications and other businesses. It offers vehicles under the Toyota and Lexus brand names. It has strategic manufacturing alliance with Joby Aviation, Inc. to establish a joint venture to realize air mobility. Toyota Motor Corporation was founded in 1933 and is headquartered in Toyota, Japan.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Toyota Motor Corporation reported revenue of ¥50.7T in FY2026 versus ¥31.4T in FY2022, a compound +12.7%/yr. Reported net income was ¥4.0T in FY2026, compounding +8.7%/yr from FY2022.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
¥50.7T
Latest YoY
+5.5%
Avg. revenue 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.
+10.9%
Avg. revenue 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.
+13.2%
Avg. revenue growth/yr (37Y) 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.
+5.1%
Value creation/yr (5Y, in JPY) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in JPY: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+17.6% (14.1 + 3.5)
Revenue +12.7%/yr
FY22 ¥31.4T
FY23 ¥37.2T
FY24 ¥45.1T
FY25 ¥48.0T
FY26 ¥50.7T
Net income +8.7%/yr
FY22 ¥2.9T
FY23 ¥2.5T
FY24 ¥4.9T
FY25 ¥4.8T
FY26 ¥4.0T
Character of growth · EPS growth decomposed (2015-2026) +11.0 % p.a.
Revenue per share +8.2 %

of which total revenue +6.3 % · buybacks/dilution +1.9 %

EBIT margin +0.6 %
Tax rate +0.3 %
Residual (interest, one-offs) +1.6 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Toyota Motor Corporation Fair Value". https://www.fairvalue-calculator.com/stock/TM

Peer Group

Auto Manufacturers · 115 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 46 · Above median
Fair Value upside +21% · Above median
Return on equity (TTM) 10% · Above median
Return on assets 2% · Above median
Net margin (TTM) 8% · Top 25%
Operating margin (TTM) 5% · Above median
Revenue growth 2% · Below median
Dividend yield (TTM) 3.5% · Above median
Debt / equity 0.64× · Higher than 75% of peers

Valuation Multiples vs Auto Manufacturers median · lower = cheaper

P/E (TTM) 10.3× · Cheaper than 75% of peers
P/B 0.83× · Cheaper than median
P/S (TTM) 0.66× · Pricier than median
P/FCF 0.4× · Cheaper than 75% of peers
EV/EBITDA 8.2× · Cheaper than median
PEG 1.54× · Pricier than median

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE61 · sector 24
FUTURE10 · sector 27
PAST41 · sector 22
HEALTH68 · sector 94
DIVIDEND71 · sector 51

Insider activity: 45/100

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

Similar stocks

10 more Auto Manufacturers stocks, each showing price versus our Fair Value estimate (as of Aug 28, 2026).

Stock Price Fair Value vs Fair Value
BYD Company 81211 HK$76.90 HK$48.59 −37%
Hyundai Motor Company 005380 418,500 KRW 567,393 KRW +36%
Ferrari N.V RACE €355.50 €167.67 −53%
General Motors Company GM $86.27 $52.69 −39%
Ford Motor Company F $13.88 $11.51 −17%
Mercedes-Benz Group MBG €46.95 €106.16 +126%
Dr. Ing. h.c. F. Porsche AG P911 €43.91 €17.34 −61%
Maruti Suzuki India Limited MARUTI ₹12,694 ₹8,236 −35%
Volkswagen AG VOW3 €77.42 €248.34 +221%
Bayerische Motoren Werke Aktiengesellschaft BMW €62.64 €140.42 +124%

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Frequently asked questions

Is Toyota Motor Corporation (TM) overvalued or undervalued?
As of Aug 28, 2026, our model estimates a fair value of $228.25 versus the last price from Aug 19, 2026 of $188.78, about +21% upside (undervalued).
What is the fair value of TM?
Our model-based fair value for Toyota Motor Corporation is $228.25 (as of Aug 28, 2026), built from audited fundamentals. Last price (from Aug 19, 2026): $188.78.
What is the quality score of TM?
Toyota Motor Corporation has a Quality Score of 46/100. 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 Toyota Motor Corporation (TM)?
Toyota Motor Corporation reported trailing-twelve-month revenue of about ¥50.7T (latest available figure, as of Aug 28, 2026).
What is the net profit margin of TM?
The net profit margin of Toyota Motor Corporation is about 7.6%, meaning it keeps roughly 7.6% of revenue as net income. Based on the latest reported figures.
Does Toyota Motor Corporation pay a dividend?
Toyota Motor Corporation currently shows a dividend yield of about 3.54% relative to its recent price (as of Aug 28, 2026).
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