EN DE

Toyota Motor Corporation (TM) Fair Value & Analysis

Consumer Cyclical · US · Market cap $213B

TM Toyota Motor Corporation logo Toyota Motor Corporation TM · US
Price$190.09
Fair Value$224.63
Upside+18.2%
Quality48/100
Watch Toyota Motor Corporation for free, get notified when fair value or trend changes. Watch for free
Expensive Growth
Thin margins · 7.6% net margin
Moderate debt · generates free cash flow
3.49% dividend yield
Ranks above peers (9/12)
Moderate moat 56/100
Evidence: High Range $193.65 – $427.42 Share as image

Fair value as of: Jul 17, 2026

From 24 valuation models · updated 21 days ago

Fair value updated Jul 17, 2026, revised from $207.37 to $224.63 (+8.3%) since Jun 24, 2026. Share price +7.3% over the past month.

Below-average quality, screening 18% undervalued on our models.

What matters now

  • A fairly wide model range ($193.65 to $427.42) leaves room in how you read the outcome.
  • Our model range runs from $193.65 (bear) to $427.42 (bull), base $224.63. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 48/100 (below-average quality) with high evidence: the data supports the verdict.
Share this valuation: 𝕏 WhatsApp

Price vs Fair Value (5 years)

$244.46 $117.28 Fair Value $224.63 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 17, 2026.

How to read this chart

60‑month range $117.28 – $244.46 · fair‑value band $193.65 – $427.42 · the $190.09 price screens below the $224.63 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 17, 2026.

Full chart & analysis →

Which stocks are undervalued right now? Check free Discover now →

Analysis

Toyota Motor Corporation (TM) currently trades at $190.09, while our model-based Fair Value estimate is $224.63, implying the stock looks roughly 18.2% undervalued today. We read business quality at 48/100 (below-average quality), in the Consumer Cyclical 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, 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 Jul 17, 2026

Our scenario range runs from $193.65 (bear case) to $427.42 (bull case); at $190.09, 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 22% below its 52-week high and 17% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 45% fair-value upside, at 18%, TM screens richer 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 BearBaseBull Evidence
Highest evidence
Growth DCF $18.98 80
Rev-Margin DCF $66.02 $174.79 $296.61 74
ROIC Compounder $73.93 $100.59 $124.28 72
All 24 models by family
DCF Models
FCF DCF $25.90 38
Owner Earnings $15.40 $68.02 $151.12 31
5Y Revenue Exit $66.02 $177.43 $321.35 39
5Y EBITDA Exit $152.94 $338.32 $555.52 41
5Y P/E Exit $147.07 $327.46 $516.62 38
10Y Revenue Exit $23.65 $118.65 $248.61 36
10Y EBITDA Exit $86.54 $232.29 $429.72 37
10Y P/E Exit $82.73 $224.63 $399.64 35
Earnings-Based
Graham-Dodd $161.91 $476.80 $630.53 54
Lynch FV $99.84 $142.62 $185.41 50
PEG = 1.0 $99.84 $142.62 $185.41 46
EPV $73.93 $100.59 $124.28 59
Multiples
P/E Multiple $357.15 $476.20 $595.26 63
P/S Multiple $303.58 $404.77 $505.97 58
P/B Multiple $303.58 $404.77 $505.97 55
EV/EBIT $226.61 $327.86 $429.10 53
EV/EBITDA $290.00 $412.37 $534.74 54
EV/Revenue $127.62 $215.36 $303.11 43
Asset-Based
NCAV (Graham) $119.75 $160.47 $239.50 50
Growth DCF
Growth DCF $18.98 80
Rev-Margin DCF $66.02 $174.79 $296.61 74
Economic Profit
Residual Income $213.53 $238.88 $403.88 61
ROIC Compounder $73.93 $100.59 $124.28 72
Growth Earnings
Growth-Adj P/E $291.25 $416.06 $540.88 68

Widest divergence: Growth Earnings ($416.06) versus Economic Profit ($100.59). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $50.7T
Revenue growth (YoY) +1.9%
Net margin 7.6%
Return on equity 10.2%
Free cash flow $592B FY2026
P/E ratio 9.6
More key figures
Operating margin 4.6%
EPS (TTM) $18.45
Dividend yield 3.2%
EPS growth (YoY) +23.2%
Net debt $30.7T FY2026

Figures from reported company fundamentals · as of Jul 17, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 48/100

Of which business quality 45 · Market factors (momentum, volatility) 50

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 87
Calm price path (market factor)
Momentum 34
Price trend over the last 3–12 months (market factor)
52W Momentum 37
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.

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. 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. growth/yr (3Y)
+10.9%
Avg. growth/yr (5Y)
+13.2%
Avg. growth/yr (37Y)
+5.1%
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

Watch TM: get an alert when its fair value changes →

Share or link this analysis
For bloggers & editors: embed code + live data

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

Recent news

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

Peer Group

Auto Manufacturers · 118 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 48 · Above median
Fair Value upside +18% · 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) 9.8× · Cheaper than 75% of peers
P/FCF 0.4× · Cheaper than 75% of peers
PEG 1.54× · 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 58 · sector 26
FUTURE 10 · sector 33
PAST 41 · sector 18
HEALTH 68 · sector 94
DIVIDEND 70 · sector 44

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 Auto Manufacturers stocks, each showing price versus our Fair Value estimate (as of Jul 17, 2026).

Stock Price Fair Value vs Fair Value
BYD Company 81211 HK$80.55 HK$50.85 -37%
Hyundai Motor Company 005380 425,000 KRW 616,918 KRW +45%
General Motors Company GM $77.72 $56.93 -27%
Bayerische Motoren Werke Aktiengesellschaft BMWM5N 1,909 MXN 2,944 MXN +54%
Ferrari N.V RACE $376.64 $228.05 -39%
Ford Motor Company F C$11.86 C$4.00 -66%
Mercedes-Benz Group BENZ C$20.44 C$35.15 +72%
Volkswagen AG VOW 2,149 CZK 7,191 CZK +235%
Maruti Suzuki India Limited MARUTI ₹13,803 ₹8,236 -40%
Kia Corporation 000270 145,000 KRW 350,994 KRW +142%

Compare Toyota Motor Corporation with another stock

Price, fair value, quality and upside side by side.

Free, no sign-up

Explore undervalued stocks

More undervalued Consumer Cyclical stocks →

All undervalued stocks TechnologyFinancial ServicesHealthcareConsumer CyclicalConsumer DefensiveCommunication ServicesIndustrialsEnergyBasic MaterialsReal EstateUtilities Deeply Undervalued StocksUndervalued Blue-Chip StocksUndervalued Small-Cap StocksUndervalued Dividend Stocks

Frequently asked questions

Is Toyota Motor Corporation (TM) overvalued or undervalued?
As of Jul 17, 2026, our model estimates a fair value of $224.63 versus a price of $190.09, about +18% (undervalued).
What is the fair value of TM?
Our model-based fair value for Toyota Motor Corporation is $224.63 (as of Jul 17, 2026), built from audited fundamentals. The current price is $190.09.
What is the quality score of TM?
Toyota Motor Corporation has a Quality Score of 48/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals 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 Jul 17, 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 3.19% relative to its recent price (as of Jul 17, 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.

14 days Pro free · no card

Track Toyota Motor Corporation and try Pro for 14 days

One email gets you 14 days of full Pro (review alerts, the 35,000+ stock screener, the diversification check) plus the monthly Top-25 report of the most undervalued quality stocks. No card, cancel anytime.

Zero risk: nothing is ever charged. After 14 days you decide whether to stay.