Toyota Motor Corporation designs, manufactures, assembles, and sells passenger cars, minivans and commercial vehicles, and related parts and accessories. The company was founded in 1933 and is based in Toyota City, Japan.
TM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Toyota Motor Corp. To summarize, we found that Toyota Motor Corp ranked in the 93th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for TM, they are:
As a business, TM is generating more cash flow than 99.75% of positive cash flow stocks in the Consumer Cyclical.
Toyota Motor Corp's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 4.46% of tickers in our DCF set.
TM's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than only 4.46% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Toyota Motor Corp? See SPWH, EDUC, RUSHA, BH, and RLH.
Dentsu Group Inc and Toyota Motor Corp have agreed to form a business alliance and establish two companies to improve Toyota's communications and digital transformation strategy, Dentsu said in a statement on Wednesday. Both the firms will operate under a holding company, of which Toyota will own 66% and Dentsu 34%. One of the companies will focus on improving Toyota's marketing strategy to create "exceptional customer trust," while the other will work on digital transformation and the use of data to improve customer relationships, Dentsu said.
The government and the Indian unit of Toyota Motors both have denied reports that the auto giant has decided against expansion in the country due to the high tax regime. Union Minister Prakash Javadekar tweeted to say that Toyota, in fact, will invest more than Rs 2000 crore in the country over the next year. It was seconded by Vikram Kirloskar, the vice-chairman of Toyota Kirloskar Motor, who said tehb company is "committed to the future of India".