Rakuten Bank, Ltd (N5G) fair value: what the stock is really worth
As of Oct 1, 2026: fair value of Rakuten Bank, Ltd €18.53, price €34.80, upside -46.8%, quality 66 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
In Frankfurt, only 2 of the last 21 trading days (30 days) had any turnover. On the other days the price is an indicative quote without trading, so we do not list this stock in the radar. It stays reachable through search.
RBSome dataSep 30, 2026
Rakuten Bank, Ltd
N5G · F
Stretched ValuationStrong overvaluation with only moderate quality.
!Fair value €18.53 · Strongly overvalued (−46.8%)
✓Quality 66/100
✓Healthy Growth(revenue 3y +27.4 %/yr)
✓Highly profitable · 37.2% net margin (TTM)
✓generates free cash flow
!Mixed vs. peers(6/11)
✓Wide moat72/100
!Evidence only medium, so the estimate is less certain
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Rakuten Bank, Ltd. provides internet banking products and services to individual, corporate, and sole proprietor customers in Japan. Its deposit products include fixed-term, foreign currency, and yen deposits; securities; and investment trusts.
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Rakuten Bank, Ltd. provides internet banking products and services to individual, corporate, and sole proprietor customers in Japan. Its deposit products include fixed-term, foreign currency, and yen deposits; securities; and investment trusts. The company also offers card loans, securities-backed loans, real estate secured loans, reverse mortgages, educational loans, home loan, and insurance products. In addition, it provides deposit, withdrawal, payment, transfer and remittance, and receive services; debit, credit, and cash card; international money transfer; and account and ID management, cashless, and partner services. Rakuten Bank, Ltd. has strategic alliance with Mizuho Bank, Ltd. to establishing a credit creation model. Rakuten Bank, Ltd. was incorporated in 2000 and is headquartered in Tokyo, Japan.
Stock analysis
Rakuten Bank, Ltd (N5G) currently trades at €34.80, while our model-based Fair Value estimate is €18.53, 46.8% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Economic Profit group reads highest at a median of €20.06 per share, and 0 of the 4 models we run sit above the €34.80 price.
Bear case: the Asset-Based group reads lowest at €8.04, and 4 of the 4 models stay below the price. Evidence for this calculation is medium.
Scenario range: €13.88 (bear) to €31.45 (bull), the price of €34.80 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 66/100 (solid quality), in the Financial Services sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Rakuten Bank, Ltd reported revenue of ¥167B in FY2026 versus ¥66.1B in FY2022, a compound +26.0%/yr. Reported net income was ¥73.1B in FY2026, compounding +38.2%/yr from FY2022.
Key figures
Market cap €6.1B · P/E ratio 15.0 · P/S ratio 6.58 · EPS (TTM) €2.32 · Net margin 43.9% · Return on equity 20.0% · Return on assets 0.5% · Operating margin 51.1%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 47 out of 100 (low confidence).
What moves the price
For context, the median of 10 Financial Services peers we cover trades at −36% fair-value upside, at −47%, N5G screens richer than that median.
Fair Value models
Bear €13.88Fair Value €18.53Bull €31.45
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2026 figures (about 6 months old). Earnings retained since then (€1.18 per share) are deliberately not added.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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+34.9%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+27.4%
’22
’23
’24
’25
’26
What shareholders gained per year (last 5 years), in JPY (mathematically smoothed) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Smoothed = median of all growth paths between the years of the window (trend line on the logarithm of earnings per share): a single extreme year cannot distort the rate. The reported figure stays in the tooltip. 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.
+37.1%
Earnings growth per share plus dividend.
Earnings per share, growth per year+37.1%
Dividend (yield on the price)0.0%
2026 sits 112% above its own trend. The rate follows the median trend of the last 5 years, not that single year.
Growth Forecast
Little optimism in the price
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
less than -40 %
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+19.4%
Yearly sales growth analysts expect, extended to five years.
After inflation (figures in JPY, Japan: IMF forecast 2.1% a year to 2030, 1.3% from 2016 to 2025) that is about +16.9% a year for the forecasts.
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Banks - Regional · 1053 stocks
Beats the industry median on 6/11 measures
A mixed picture versus its industry peers.
Valuation
Quality Score70 · Top 25%
Fair Value upside−47.4% · Bottom 25%
Profitability
Return on equity (TTM)20.0% · Top 25%
Return on assets0.5% · Bottom 25%
Net margin (TTM)37.2% · Above median
Operating margin (TTM)51.1% · Top 25%
Growth and dividend
Revenue growth27.2% · Top 25%
Valuation Multiplesvs Banks - Regional median · lower = cheaper
P/E (TTM)15.0× · Priciest 25%
P/B2.93× · Priciest 25%
P/S (TTM)5.25× · Priciest 25%
P/FCF3.3× · Cheapest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 12
FUTURE (revenue growth)100· sector 47
PAST (return on equity)80· sector 41
HEALTH (low debt)0· sector 84
DIVIDEND (yield)0· sector 52
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Rakuten Bank, Ltd Fair Value". https://www.fairvalue-calculator.com/stock/N5G
Frequently asked questions
Is Rakuten Bank, Ltd (N5G) overvalued or undervalued?
As of Sep 30, 2026, our model estimates a fair value of €18.53 versus a price of €34.80, about −47% upside (overvalued).
What is the fair value of N5G?
Our model-based fair value for Rakuten Bank, Ltd is €18.53 (as of Sep 30, 2026), built from audited fundamentals. The current price: €34.80.
What is the quality score of N5G?
Rakuten Bank, Ltd has a Quality Score of 66/100. 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 price target for Rakuten Bank, Ltd (N5G)?
Our model-based price target is the fair value of €18.53 (as of Sep 30, 2026) from 4 valuation models. Cautious scenario €13.88, optimistic scenario €31.45. It is a calculation from audited fundamentals, not an analyst target.
What is the Rakuten Bank, Ltd stock forecast for 2026?
Our models put fair value at €18.53, about −47% upside versus a price of €34.80 (overvalued). Cautious scenario €13.88, optimistic scenario €31.45. The calculation is refreshed regularly with new filings.
What is the revenue of Rakuten Bank, Ltd (N5G)?
Rakuten Bank, Ltd reported trailing-twelve-month revenue of about ¥208B (latest available figure, as of Sep 30, 2026).
What growth is priced into Rakuten Bank, Ltd (N5G)?
For today's price to be fair in a discounted-cash-flow model, Rakuten Bank, Ltd would have to grow free cash flow by less than minus 40 % per year for five years (discount rate 9.5 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 4 years revenue grew +26.0 % per year. As of Sep 30, 2026.
What discount rate (WACC) does the fair value of N5G use?
Our models discount Rakuten Bank, Ltd at 9.5 %: a base by market capitalisation (mid), country premium for Germany. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Rakuten Bank, Ltd that is less than minus 40 % per year a year over ten years, using the same discount rate (9.5 %) and the same formula as our fair value.
How much growth has Rakuten Bank, Ltd (N5G) delivered so far?
Over the past 4 years revenue at Rakuten Bank, Ltd grew +26.0 % a year. The price currently implies less than minus 40 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Rakuten Bank, Ltd (N5G) growing?
The median revenue growth in the sector is +8.6 % a year. That is the yardstick for the growth priced into Rakuten Bank, Ltd (less than minus 40 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Rakuten Bank, Ltd (N5G)?
The free-cash-flow yield on the price is 31.16 %: that much free cash flow Rakuten Bank, Ltd produces per unit of market value. When it exceeds the discount rate of our models (9.5 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Rakuten Bank, Ltd (N5G)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Rakuten Bank, Ltd it is €18.53 per share (as of Sep 30, 2026), against a price of €34.80. It is the blended result of 4 valuation models (cash flow, earnings, asset, dividend).
Is Rakuten Bank, Ltd stock overvalued or undervalued in 2026?
As of Sep 30, 2026, N5G trades above its calculated fair value: price €34.80, fair value €18.53, a gap of about −47% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of N5G?
No. The price is what the market pays today (€34.80); the fair value is what the company's own numbers justify (€18.53). For Rakuten Bank, Ltd the two are €16.27 per share apart. That gap is exactly why we show both numbers side by side.
How much is Rakuten Bank, Ltd worth?
The market values Rakuten Bank, Ltd at about €6.1B (market capitalisation, as of Sep 30, 2026). Per share that is €34.80; our models calculate a fair value of €18.53 per share.
What do the bullish and bearish scenarios say about N5G?
Our models span a range for Rakuten Bank, Ltd: cautious scenario €13.88, base €18.53, optimistic €31.45 per share (as of Sep 30, 2026, price €34.80). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of N5G?
Rakuten Bank, Ltd trades at a price-to-earnings ratio of 15.0 (as of Sep 30, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of €18.53 is built from several models across several years. Other multiples: P/B 2.9, P/S 5.3.
How solid is the balance sheet of Rakuten Bank, Ltd (N5G)?
Balance-sheet figures for Rakuten Bank, Ltd (as of Sep 30, 2026): return on equity 20.0%. They feed the Quality Score of 66/100, which measures business quality independently of the share price.
Which stocks are comparable to Rakuten Bank, Ltd?
From the same area (Financial Services) we also value DBS Group, China Merchants Bank Co, UniCredit S.p.A, Mizuho Financial Group, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Rakuten Bank, Ltd stock attractive at the current price?
The data as of Sep 30, 2026: price €34.80, calculated fair value €18.53 (−47%), Quality Score 66/100, from 4 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of N5G calculated?
We run Rakuten Bank, Ltd through 4 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of €18.53, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.5 % above its aggregate fair value. Rakuten Bank, Ltd itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Rakuten Bank, Ltd (N5G)?
The closing price on Oct 1, 2026 was €34.80. Our model-based fair value is €18.53, about −47% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Rakuten Bank, Ltd right now?
The price sits above even our optimistic bull case (€31.45). The favourable scenario is already priced in. Solid but not exceptional quality (66/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range (€13.88 to €31.45) leaves room in how you read the outcome. For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Key figures of Rakuten Bank, Ltd
How large is the market capitalisation of Rakuten Bank, Ltd (N5G)?
The market capitalisation of Rakuten Bank, Ltd is €6.1B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Rakuten Bank, Ltd (N5G)?
The price-to-sales ratio of Rakuten Bank, Ltd is 6.58 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Rakuten Bank, Ltd (N5G)?
Earnings per share at Rakuten Bank, Ltd are €2.32 (price ÷ EPS = P/E 15.0). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Rakuten Bank, Ltd (N5G)?
The net margin of Rakuten Bank, Ltd is 43.9% (fiscal year 2026). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Rakuten Bank, Ltd (N5G)?
The return on equity (ROE) of Rakuten Bank, Ltd is 20.0% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the return on assets of Rakuten Bank, Ltd (N5G)?
The return on assets (ROA) of Rakuten Bank, Ltd is 0.5% (last twelve months). Profit relative to everything the company owns. Harder to inflate than return on equity because debt does not boost it.
What is the operating margin of Rakuten Bank, Ltd (N5G)?
The operating margin of Rakuten Bank, Ltd is 51.1% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Rakuten Bank, Ltd (N5G)?
Revenue at Rakuten Bank, Ltd is growing +27.2% versus a year earlier (3y avg +27.4%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Rakuten Bank, Ltd (N5G)?
Earnings per share at Rakuten Bank, Ltd are growing +24.5% versus a year earlier. How much earnings per share grew versus a year earlier.
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