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Suzuki Motor (TSE:7269) has drawn investor attention after recent share price swings, with the stock showing a negative move over the past 3 months while still carrying a positive 1 year total return.
See our latest analysis for Suzuki Motor.
The recent 1 day share price return of 1.29% and 7 day share price return of 3.14% come after a 90 day share price decline of 21.66%. In contrast, the 5 year total shareholder return of 89.00% points to stronger longer term compounding, suggesting near term momentum is fading even as longer horizon returns remain positive.
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With Suzuki Motor trading at ¥1,808 against an analyst price target of ¥2,651.76 and an estimated intrinsic value suggesting a 5.3% discount, you have to ask: is there real upside here, or is the market already pricing in future growth?
Price-to-Earnings of 8.5x: Is it justified?
Suzuki Motor trades on a P/E of 8.5x, while also sitting 5.3% below one internal fair value estimate and below an SWS DCF value of ¥1,909.62.
The P/E ratio compares the current share price with the company’s earnings, so a lower multiple often signals the market is placing a modest value on each unit of profit. For a mature auto manufacturer with established earnings and a broad product base, P/E can be a useful shorthand for how the market is weighing its current profitability against expectations for future results.
Here, Suzuki Motor’s 8.5x P/E is presented as good value relative to multiple yardsticks. It screens as attractive versus an estimated fair P/E of 14.9x, which is a level the market could move towards if earnings quality and growth trends remain similar to current conditions. It is also described as good value compared to the Asian auto industry average P/E of 19.1x and a peer average of 27x, a wide gap that suggests the stock is priced at a discount to many regional and peer autos despite profitable operations and forecast earnings growth.
Explore the SWS fair ratio for Suzuki Motor
Result: Price-to-Earnings of 8.5x (UNDERVALUED)
However, the recent 24.4% year to date share price decline and 21.7% 90 day pullback, alongside reliance on the core automobile segment, could challenge that value story.
Find out about the key risks to this Suzuki Motor narrative.
Another View: Cash Flows Tell a Slightly Different Story
The P/E ratio paints Suzuki Motor as attractively priced, but our DCF model is a bit more restrained, putting fair value at ¥1,909.62 versus the current ¥1,808. That implies only a modest undervaluation, so the potential advantage may be limited.
Look into how the SWS DCF model arrives at its fair value.
7269 Discounted Cash Flow as at May 2026
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Suzuki Motor for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 15 high quality undervalued stocks. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.
Next Steps
Given the mixed signals in the recent share price and valuation data, it makes sense to review the numbers yourself and decide where you stand. To round out the picture, take a closer look at the 5 key rewards.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include 7269.T.
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