Morningstar judged these Japanese stocks to be overvalued and newly downgraded the stock ratings of Recruit Holdings, Japan Tobacco and SoftBank to 2 stars (Overvalued). The stocks are listed in order of market capitalisation.
Morningstar published a review of its stock ratings for the Japanese equity market, newly downgrading 3 stocks whose share prices had risen over the past month to 2 stars. Of these, there were no stocks newly rated as overvalued in addition to those already considered overvalued. The 3 companies are Recruit Holdings, Japan Tobacco and SoftBank, listed in order of market capitalisation.
Recruit Holdings has a Morningstar stock rating of ★★ (Overvalued), a fair value estimate of ¥15,000 and a High uncertainty rating. Its Economic Moat rating is Narrow and its Capital Allocation rating is Exemplary. The share price has continued to rise over the past month, gaining 46.02% over the past 3 months and 122.48% over the past year.
Japan Tobacco has a rating of ★★ (Overvalued), a fair value estimate of ¥6,400 and Medium uncertainty. Its Economic Moat is Wide and its Capital Allocation rating is Standard. The share price has risen 9.35% over the past month, 19.96% over the past 3 months and 56.11% over the past year.
SoftBank has a rating of ★★ (Overvalued), a fair value estimate of ¥230 and Low uncertainty. Its Economic Moat is Narrow and its Capital Allocation rating is Standard. The share price has risen 0.23% over the past month, 15.31% over the past 3 months and 17.48% over the past year.