SoftBank Group: down 50% in the last 12 months. How can it double back up in the next 12?
SoftBank’s stock came down over 50% in the last 12 months. In today’s piece we look at the group’s gross asset value and the multiple sources of leverage embedded in the holding structure today, in order to understand what it would take for the stock to double back up.Our conclusion is straight forward. Not much is needed indeed: only a partial recovery in Alibaba’s share price, combined with ARM’s IPO and a successful buyback would do.
SoftBank Group is a holding company. Domestic Telecommunications business provides mobile communication services, mobile devices, broadband services to retail customers, and telecom services to corporate customers in Japan. Sprint business provides mobile communication services and fixed-line telecommunication services in the U.S. Yahoo Japan business operates Internet-based advertising and e-commerce business. Distribution business distributes mobile devices overseas, and sells software and mobile device accessories in Japan. ARM business designs microprocessor intellectual property and related technology. SoftBank Vision Fund & Delta Fund business is engaged in the investment activities.
Provided by our team of experienced analysts, our work is idea driven, based on independence of thought, sector expertise, and firmly focussed on fundamentals and valuation.
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- Pan European Telecom Services and Cable
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- Global Emerging Market Telecoms
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- Pan European Telecom Services and Cable
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