Is Toyota Undervalued

Toyota / By
  • In 23 of those 44 years, Toyota Motor has increased over the ensuing 52-week period, giving it a historical accuracy of 52.27%.
  • Is the stock of Toyota Motor Undervalued?
  • Based on the stock performance over the previous 44 years, Toyota Motor has typically increased by 12.8% over the following 52 weeks.

The Score for TM is 31, which denotes more risk than average and is 38% lower than its previous median score of 50.

  • TM’s current stock price is in the 30 and 40% percentile area in terms of its previous Stock Score levels.

Is buying Toyota a wise investment?

Toyota Motor is a buy for a number of reasons. The draw in this case is the brand name, which enjoys a devoted fan base, which naturally creates a strong demand for any future EV offering with the Toyota or Lexus badge. Even if the corporation hasn’t been a pioneer in battery-powered EVs, given its extensive global infrastructure and manufacturing know-how, its plan to build up in that direction seems plausible. According to this metric, the company continues to have a positive growth outlook and is in a good position to increase its market share globally.

With a price estimate of $235.00 for the next year, which corresponds to a 1-year forward P/E of 10x the current consensus fiscal 2023 EPS, we rank shares of TM as a buy. The chart below shows that since the peak of the pandemic crash in 2020, shares of TM have been closely following a trendline. This pattern should continue, in our opinion, and the most recent decline from the early-January high of $212 signals a fresh window for purchasing.

We are adopting a more upbeat stance in the midst of all the stories about macro concerns, heightened inflation pressures on consumer discretionary spending, and rising interest rates. Nevertheless, there are dangers to think about. The positive case for the stock might be undermined by a worsening of the forecast for global growth while keeping a watch on events in Eastern Europe related to the conflict between Russia and Ukraine. A review of the long-term profits prospects would allow for a leg lower in the stock if the results were less than anticipated and below management guidance. Over the coming quarters, keep an eye on things like production and sales levels, the operating margin, and any changes to the BEV plan.

Toyota: Is it overpriced?

According to GuruFocus Value assessment, the stock of Toyota Motor (NYSE:TM, 30-year Financials) exhibits all the symptoms of being materially overvalued. The stock should be traded at the GuruFocus Value, which is GuruFocus’ assessment of the stock’s fair value. It is determined using previous stock multiples, historical business growth, and analyst projections of future business performance. An expensive stock will likely have a bad future return if its price is much higher than the GF Value Line. On the other hand, its future return will probably be larger if it is far below the GF Value Line. Toyota Motor stock appears to be extremely expensive at its current price of $182.41 per share and market worth of $255 billion. In the graph below, the GF Value for Toyota Motor is displayed.

The long-term return of Toyota Motor’s stock is probably going to be substantially lower than its expected future company growth, which is predicted to gain 0.06% yearly over the next three to five years, because Toyota Motor is significantly overvalued.

Is Toyota a worthwhile investment for 2022?

The price of the (TM) shares as of August 4th, 2022 is $157.31. Compared to being down -14.01% over the previous year, the (TM) stock is down -3.2% over the last five trading days. (TM) is now down -15.1% in 2022.

Is Toyota currently a buy?

TM currently has a Value grade of A and a Zacks Rank of #1 (Strong Buy). The stock’s P/E ratio is 9.10, while the P/E for its sector is 10.96 on average. The Forward P/E for TM has ranged from 10.67 to 13.59 over the past 12 months, with a median of 10.67.

What stock is currently the most undervalued?

Seven undervalued stocks to buy right away:

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  • Widecom Inc.
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Is a surge in Toyota stock anticipated?

The consensus price target among the 18 analysts that are providing 12-month price projections for Toyota Motor Corp. is 187.78, with a high estimate of 195.98 and a low estimate of 147.77. From the most recent price of 157.78, the median forecast reflects a rise of +19.01%.

Analyst Recommendations

The current consensus among the 21 investment analysts surveyed is to buy Toyota Motor Corporation stock. Since August, when it remained unchanged from a Buy rating, this rating has remained stable. Hover your mouse over earlier months for more information.

Will Toyota shares gain ground?

By July 7, 2023, the Wall Street analyst expected Toyota Motor’s share price to reach $179.41. From the current TM share price of $162.59, the average Toyota Motor stock price projection predicts a possible increase of 10.35%. What is the projected Earnings Per Share (EPS) for TM between 2023 and 2025?

Toyota: A reliable dividend stock?

Toyota distributes 25.4% of its earnings to its shareholders. Our statistic measuring the dividend’s dependability is 0.87 out of maximum. 1.0. This suggests a historically dependable dividend payer. Analysts also anticipate a 20.58% increase in the dividend for the current fiscal year.

Can I invest in Toyota Motor?

Buy is the general consensus for Toyota Motor. Based on 3 buy ratings, 2 hold ratings, and no sell ratings, the firm has an average rating score of 2.60.

Is Ford a wise investment at the moment?

The price of Ford shares soared in 2021 and into the new year, but it plunged after the most recent market correction.

Investors should wait to see if Ford stock will maintain above its 10-week line as it builds a new base even though Ford has undeniably broken its downtrend. Despite the positive response to Ford’s earnings, a buy at this point would be dangerous because the stock hasn’t yet developed a solid basis. Additionally, shares are over 10% above the 10-week line, which is a sign of extension.

Visit IBD’s Stock Lists page to identify the finest stocks to buy and watch. Our Leaderboard and MarketSmith programs both offer further stock recommendations.

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