Toyota Motor Corporation
9,472,556 (FY21)
Toyota Motor Corporation designs, manufactures, assembles, and sells passenger vehicles, minivans and commercial vehicles, and related parts and accessories. It operates in Automotive, Financial Services, and All Other segments. The company offers hybrid cars under the Prius name, fuel cell vehicles under the MIRAI name; and conventional engine vehicles, including subcompact and compact cars under the Corolla and Raize names. It also provides mini-vehicles, passenger vehicles, commercial vehicles, and auto parts under the Toyota name; mid-size cars; luxury cars; sports cars under the GR Yaris, Corolla Sport, Corolla Cross, and Supra names; and recreational and sport-utility vehicles under the Highlander name. In addition, the company offers pickup trucks under the Tacoma name; minivans; and trucks and buses. Further, it provides financial services, such as retail financing and leasing, wholesale financing, insurance, and credit cards; and designs, manufactures, and sells prefabricated housing. Additionally, the company operates GAZOO.com, a web portal for automobile information. It operates in Japan, North America, Europe, Asia, Central and South America, Oceania, Africa, and the Middle East. The company was founded in 1933 and is headquartered in Toyota, Japan.
Product[3]Edit
With its extensive history, Toyota is a company that boasts a rich legacy. The sales department of the organization has reached a high level of maturity. Therefore, rather than enumerating hundreds of car models for sale, we will outline the company's goals and strategic direction.
ElectrificationEdit
Toyota's approach to electrification sets it apart, as it diverges from the conventional emphasis on battery electric vehicles (BEVs). Rather than solely focusing on BEVs, Toyota remains committed to a strategy of "diversification" in its electrification efforts. This translates to the company's investment not only in the development of battery electric vehicles, but also in the advancement of Hydrogen Electrical Vehicles, hybrid cars, and even traditional gasoline-powered vehicles.
BEVsEdit
Despite a relatively slower pace compared to other competitors in the development of BEVs recently, Toyota has made the decision to gradually increase its investment in this area. In its recent development updates, the company has announced a goal to have nearly half of all Toyota vehicles be BEVs by the year 2023.[3]
Discounted Cash FlowEdit
The table below represented he Unlevered Free Cash Flow (FCF) data for Toyota from 2018 to 2027, the company experienced a negative in recent years(2019-2020, 2022). The projected FCF for the years 2023 to 2027 shows a shift to positive value, indicating that Toyota will regain its momentum and return to profitability in the near future.
| Fiscal Year | 2018 | 2019 | 2020 | 2021 | 2022 FY | 2023 FY | 2024 FY | 2025 FY | 2026 FY | 2027 FY |
|---|---|---|---|---|---|---|---|---|---|---|
| Unleveled FCF | 193 | -4,386 | -25,953 | 14,235 | -647 | 11,133 | 14,700 | 13,713 | 13,469 | 13,377 |
| Projection Year | 1 | 2 | 3 | 4 | 5 | |||||
| Present Value of FCF | 10,837 | 13,949 | 12,649 | 12,095 | 11,693 |
Toyota Motor Corporation has an enterprise value of 1493,809 units and an equity value of 1,363,532 units with a WACC of 2.73%. The implied share price is 98 units, showing a significant increase compared to the current share price of 17 units, with a remarkable 471.16% change.
| WACC | 2.73% |
|---|---|
| Sum of PV of FCF | 61,204 |
| Growth rate | 2.00% |
| Terminal Value | 1,638,945 |
| Present Value of Terminal Value | 1,432,605 |
| Enterpise Value | 1,493,809 |
| (+) cash | 35,406 |
| (-) Debt | 165,683 |
| Equity Value | 1,363,532 |
| Diluted Shares Outstanding | 13,888 |
| Implied share price | 98 |
| Current share price | 17 |
| % change in share price | 471.16% |
ReferencesEdit
- ↑ "Toyota Global Sales and Production Secures 90 Percent Level Year-on-Year in FY2021" (Press release). Japan: Toyota Motor Corporation. April 28, 2021. Retrieved April 28, 2021.
- ↑
- ↑ 3.0 3.1 https://media.toyota.co.uk/toyota-unveils-new-technology-that-will-change-the-future-of-cars/