Rakuten Group (FRA:RAKA) EV-to-FCF: 4.90 (As of Jul. 02, 2026) — 80% Above Median


FRA:RAKA Rakuten Group Inc FRA:RAKA
61 GF Score
Price €3.82
GF Value €4.86
! 6 Warning Signs
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What is Rakuten Group EV-to-FCF?

Rakuten Group FRA:RAKA -4.02% 61 EV-to-FCF is 4.90 as of Jul. 02, 2026, which is 80% above its 10-year median of 2.72. GuruFocus rates FRA:RAKA with a GF Score™ of 61/100 and a GF Value™ of €4.86. The stock has 6 warning signs investors should review. Among 772 Retail - Cyclical companies, Rakuten Group ranks better than 80.96% on this metric.

EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Rakuten Group's Enterprise Value is €13,639 Mil. Rakuten Group's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was €2,781 Mil. Therefore, Rakuten Group's EV-to-FCF for today is 4.90.

The historical rank and industry rank for Rakuten Group's EV-to-FCF or its related term are showing as below:

FRA:RAKA' s EV-to-FCF Range Over the Past 10 Years
Min: -456.02   Med: 2.72   Max: 87.87
Current: 5.5

During the past 13 years, the highest EV-to-FCF of Rakuten Group was 87.87. The lowest was -456.02. And the median was 2.72.

FRA:RAKA's EV-to-FCF is ranked better than
80.96% of 772 companies
in the Retail - Cyclical industry
Industry Median: 13.7 vs FRA:RAKA: 5.50

EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.

As of today (2026-07-02), Rakuten Group's stock price is €3.82. Rakuten Group's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 was €-0.326. Therefore, Rakuten Group's PE Ratio (TTM) for today is At Loss.


Rakuten Group  (FRA:RAKA) EV-to-FCF Explanation

EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.

Rakuten Group's PE Ratio (TTM) for today is calculated as:

PE Ratio (TTM)=Share Price (Today)/Earnings per Share (Diluted) (TTM)
=3.82/-0.326
=At Loss

Rakuten Group's share price for today is €3.82.
Rakuten Group's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €-0.326.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.


Rakuten Group EV-to-FCF Related Terms


Rakuten Group EV-to-FCF Historical Data

* Premium members only.

The historical data trend for Rakuten Group's EV-to-FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Rakuten Group EV-to-FCF Chart

Rakuten Group Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EV-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.89 -1.75 3.39 1.53 10.42

Rakuten Group Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EV-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 26.50 10.76 29.35 10.42 5.66

FRA:RAKA vs AMZN, BABA, PDD: EV-to-FCF Comparison

For the Internet Retail subindustry, Rakuten Group's EV-to-FCF, along with its competitors' market caps and EV-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Rakuten Group EV-to-FCF vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Rakuten Group's EV-to-FCF distribution charts can be found below:

* The bar in red indicates where Rakuten Group's EV-to-FCF falls into.


FRA:RAKA
61GF Score
Rakuten Group Inc FRA:RAKA
EV-to-FCF is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Rakuten Group EV-to-FCF Calculation

Rakuten Group's EV-to-FCF for today is calculated as:

EV-to-FCF=Enterprise Value (Today)/Free Cash Flow (TTM)
=13639.126/2780.948
=4.90

Rakuten Group's current Enterprise Value is €13,639 Mil.
Rakuten Group's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €2,781 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EV-to-FCF →
What does a EV-to-FCF of 4.90 mean?
Rakuten Group (FRA:RAKA) has a EV-to-FCF of 4.90 as of Jul. 02, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Rakuten Group and its competitors. This is 80% above median its historical median of 2.72. According to the industry distribution chart, Rakuten Group ranks #147 out of 772 companies in the Retail - Cyclical industry, placing it in the top 19%.
Is Rakuten Group's EV-to-FCF too high?
Rakuten Group's current EV-to-FCF of 4.90 is 80% above median its 10-year median of 2.72. The Retail - Cyclical industry median EV-to-FCF is 13.70. Rakuten Group's value of 4.90 is 64.2% below this industry median. Based on the distribution chart, Rakuten Group ranks #147 out of 772 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Rakuten Group has a GF Score™ of 61/100, reflecting its overall financial health beyond just this single metric.
How does Rakuten Group's EV-to-FCF compare to AMZN and BABA?
According to the Retail - Cyclical industry distribution chart, Rakuten Group ranks #147 out of 772 companies for EV-to-FCF. This places Rakuten Group in the top 19% of its industry — outperforming the majority of peers. The industry median EV-to-FCF is 13.70. Rakuten Group's value of 4.90 is 64.2% below this benchmark. While the company's 10-year median is 2.72 vs. the industry median of 13.70, Rakuten Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-FCF for a Retail - Cyclical company?
The median EV-to-FCF among Retail - Cyclical companies is 13.70, based on 772 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rakuten Group's current EV-to-FCF of 4.90 is 64.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Rakuten Group and its competitors. For the Retail - Cyclical industry, the median EV-to-FCF is 13.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rakuten Group's current EV-to-FCF is 4.90, which is 80% above median its own 10-year median of 2.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rakuten Group stock overvalued right now?
Rakuten Group (FRA:RAKA) has a current EV-to-FCF of 4.90. The stock's GF Value™ is €4.86, compared to a current price of €3.82 — trading 21.4% below its estimated fair value. The current EV-to-FCF is 4.90, which is 80% above median its 10-year median of 2.72 and 64.2% below the Retail - Cyclical industry median of 13.70. Rakuten Group's overall GF Score™ is 61/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For Rakuten Group (FRA:RAKA), the current EV-to-FCF is 4.90 as of Jul. 02, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Rakuten Group (FRA:RAKA) Overvalued in 2026?

Based on GuruFocus' analysis, Rakuten Group stock appears to be undervalued. The current stock price of €3.82 is trading 21.4% below its estimated GF Value™ of €4.86.

Key valuation signals for FRA:RAKA:

  • EV-to-FCF: 4.90 (80% above median its 10-year median of 2.72)
  • GF Value™: €4.86 vs. price of €3.82 (21.4% below fair value)
  • GF Score™: 61/100 with 6 warning signs
  • Industry Position: 64.2% below the Retail - Cyclical median (#147 of 772)

No single metric tells the full story. See the FRA:RAKA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Rakuten Group Business Description

Address 1-14-1 Tamagawa, Rakuten Crimson House, Setagaya-ku, Tokyo, JPN, 158-0094
Rakuten is a leading e-commerce and financial technology service provider in Japan. It has built up a comprehensive Rakuten ecosystem in Japan, including Rakuten Ichiba for e-commerce, Rakuten Travel, Rakuten Card, Rakuten Bank, and Rakuten Securities, and became the fourth mobile network operator in Japan in April 2020. The loyalty program, Rakuten Super Points, has encouraged cross-use of services in its ecosystem. About 90% of its revenue is generated from the Japanese market.
61GF Score

Get the complete analysis for FRA:RAKA

EV-to-FCF is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€3.82
Price
€4.86
GF Value