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Toyota Motor Corporation (TMN) Fair Value & Analysis

Consumer Cyclical · MX · Market cap 3.6T MXN

TM Toyota Motor Corporation TMN · MX
Price3,052 MXN
Fair Value4,134 MXN
Upside+35.4%
Quality46/100
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Expensive Growth
Thin margins · 7.6% net margin
Moderate debt · generates free cash flow
3.11% dividend yield
Narrow moat 41/100
Evidence: High Range 3,313 MXN – 7,203 MXN Share as image

Fair value as of: Jul 16, 2026

From 23 valuation models · updated 25 days ago

Fair value updated Jul 16, 2026, revised from 34,970 MXN to 4,134 MXN (−88.2%) since Jun 24, 2026. Share price +0.8% over the past month.

Below-average quality, screening 35% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (3,313 MXN). 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 (3,313 MXN to 7,203 MXN) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

4,185 MXN 1,323 MXN Fair Value 4,134 MXN Jun 2015 Jul 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range 1,323 MXN – 4,185 MXN · fair‑value band 3,313 MXN – 7,203 MXN · the 3,052 MXN price screens below the 4,134 MXN fair value. Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

Toyota Motor Corporation (TMN) currently trades at 3,052 MXN, while our model-based Fair Value estimate is 4,134 MXN, implying the stock looks roughly 35.4% undervalued today. The Quality Score stands at 46/100 (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 MXN 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 30.5T MXN. Fundamentals as of Jul 16, 2026

Our scenario range runs from 3,313 MXN (bear case) to 7,203 MXN (bull case); at 3,052 MXN, 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 27% below its 52-week high, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 45% fair-value upside, at 35%, TMN 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
Residual Income 29,826 MXN 33,174 MXN 53,252 MXN 76
ROIC Compounder 11,433 MXN 15,382 MXN 18,893 MXN 72
Gordon GGM 10,064 MXN 21,972 MXN 36,969 MXN 70
All 23 models by family
DCF Models
Owner Earnings 4,936 MXN 14,942 MXN 31
5Y Revenue Exit 8,259 MXN 25,020 MXN 47,154 MXN 39
5Y EBITDA Exit 17,733 MXN 42,993 MXN 73,279 MXN 41
5Y P/E Exit 21,818 MXN 50,741 MXN 81,883 MXN 38
10Y Revenue Exit 1,328 MXN 15,502 MXN 35,813 MXN 36
10Y EBITDA Exit 8,478 MXN 28,366 MXN 56,485 MXN 37
10Y P/E Exit 11,156 MXN 33,912 MXN 63,293 MXN 35
Earnings-Based
Graham-Dodd 22,097 MXN 73,398 MXN 98,230 MXN 54
Lynch FV 16,606 MXN 23,722 MXN 30,839 MXN 50
PEG = 1.0 16,606 MXN 23,722 MXN 30,839 MXN 46
EPV 11,433 MXN 15,382 MXN 18,893 MXN 59
Dividend Discount
Gordon GGM 10,064 MXN 21,972 MXN 36,969 MXN 70
DDM Multi-Stage 10,064 MXN 17,487 MXN 22,898 MXN 61
Multiples
P/E Multiple 53,619 MXN 71,492 MXN 89,365 MXN 63
P/S Multiple 38,522 MXN 51,363 MXN 64,203 MXN 58
P/B Multiple 41,433 MXN 55,244 MXN 69,054 MXN 55
EV/EBIT 31,988 MXN 46,300 MXN 60,612 MXN 53
EV/EBITDA 35,860 MXN 51,462 MXN 67,065 MXN 54
EV/Revenue 17,994 MXN 30,398 MXN 42,802 MXN 43
Asset-Based
NCAV (Graham) 16,855 MXN 22,586 MXN 33,710 MXN 50
Economic Profit
Residual Income 29,826 MXN 33,174 MXN 53,252 MXN 76
ROIC Compounder 11,433 MXN 15,382 MXN 18,893 MXN 72
Growth Earnings
Growth-Adj P/E 45,127 MXN 64,467 MXN 83,807 MXN 68

Widest divergence: Growth Earnings (64,467 MXN) versus Economic Profit (15,382 MXN). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 50.7T MXN
Revenue growth (YoY) +1.9%
Net margin 7.6%
Return on equity 10.2%
Free cash flow 180B MXN FY2026
P/E ratio 9.5
More key figures
Operating margin 4.6%
EPS (TTM) 319.85 MXN
Dividend yield 3.1%
EPS growth (YoY) +23.2%
Net debt 30.5T MXN FY2026

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 46/100

Of which business quality 45 · Market factors (momentum, volatility) 32

Profitability 32
Margins and returns on capital today
Quality Growth 37
Are margins and returns improving?
Cashflow 31
Earnings quality: real cash, not paper profit
Fin. Strength 49
Balance sheet, leverage, solvency risk
Investment 44
Disciplined investing over empire-building
Low Volatility 55
Calm price path (market factor)
Momentum 29
Price trend over the last 3–12 months (market factor)
52W Momentum 13
Distance to the 52-week high (market factor)
Net Issuance 89
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 MXN in FY2026 versus 31.4T MXN in FY2022, a compound +12.7%/yr. Reported net income was 3.8T MXN in FY2026, compounding +7.8%/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 MXN
Latest YoY
+5.5%
Avg. growth/yr (3Y)
+10.9%
Avg. growth/yr (5Y)
+13.2%
Avg. growth/yr (12Y)
+5.8%
Revenue +12.7%/yr
FY22 31.4T MXN
FY23 37.2T MXN
FY24 45.1T MXN
FY25 48.0T MXN
FY26 50.7T MXN
Net income +7.8%/yr
FY22 2.9T MXN
FY23 2.5T MXN
FY24 4.9T MXN
FY25 4.8T MXN
FY26 3.8T MXN

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

Recent news

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

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 16, 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%

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Frequently asked questions

Is Toyota Motor Corporation (TMN) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of 4,134 MXN versus a price of 3,052 MXN, about +35% (undervalued).
What is the fair value of TMN?
Our model-based fair value for Toyota Motor Corporation is 4,134 MXN (as of Jul 16, 2026), built from audited fundamentals. The current price is 3,052 MXN.
What is the quality score of TMN?
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 (TMN)?
Toyota Motor Corporation reported trailing-twelve-month revenue of about 50.7T MXN (latest available figure, as of Jul 16, 2026).
What is the net profit margin of TMN?
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 3.04% relative to its recent price (as of Jul 16, 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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