Yamaha (TSE:7951) Valuation in Focus After Major Buyback Announcement and Capital Strategy Update
Yamaha (TSE:7951) announced a share buyback plan to repurchase 20 million shares, about 4% of its capital, by March 2026, aiming to enhance shareholder returns and capital efficiency. Despite a recent earnings call and a 5.9% decline in one-year total shareholder return, the company is viewed as undervalued with a fair value of ¥1,132 compared to its current price of ¥993.5. However, it trades at a high P/E ratio of 71.3, indicating potential downside risk. Investors are advised to consider both growth opportunities and risks in their assessments.
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