TM (Toyota Motor) Moat Score: 8/10 (As of Jun. 26, 2026)


TM Toyota Motor Corp TM
81 GF Score
Price $171.71
GF Value $207.33
Valuation Modestly Undervalued
! 3 Warning Signs
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What is Toyota Motor Moat Score?

Toyota Motor TM +3.13% 81 Moat Score is 8 as of Jun. 26, 2026. GuruFocus rates TM with a GF Score™ of 81/100 and a GF Value™ of $207.33 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,318 Vehicles & Parts companies, Toyota Motor ranks better than 99.85% on this metric.

Toyota Motor has the Moat Score of 8, which implies that the company might have Wide Moat - Clear and robust wide moat.

Toyota Motor has Wide Moat: Toyota has a robust wide moat due to its strong brand, economies of scale, and superior distribution network. Its significant R&D capabilities and innovation in hybrid technology provide durable cost advantages and pricing power, securing its market leadership.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Toyota Motor might have Wide Moat - Clear and robust wide moat.

Toyota Motor  (NYSE:TM) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Toyota Motor Moat Score Related Terms

TM vs TSLA, GM, F: Moat Score Comparison

For the Auto Manufacturers subindustry, Toyota Motor's Moat Score, along with its competitors' market caps and Moat Score 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.

Toyota Motor Moat Score vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Toyota Motor's Moat Score distribution charts can be found below:

* The bar in red indicates where Toyota Motor's Moat Score falls into.


TM
81GF Score
Toyota Motor Corp TM
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 8 mean?
Toyota Motor (TM) has a Moat Score of 8 as of Jun. 26, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Toyota Motor ranks #2 out of 1318 companies in the Vehicles & Parts industry, placing it in the top 0.2%.
Is Toyota Motor's Moat Score too high?
Toyota Motor's current Moat Score is 8. Based on the distribution chart, Toyota Motor ranks #2 out of 1318 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Toyota Motor has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Toyota Motor's Moat Score compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Toyota Motor ranks #2 out of 1318 companies for Moat Score. This places Toyota Motor in the top 0% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Vehicles & Parts company?
A good Moat Score depends on the Vehicles & Parts industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Toyota Motor's current Moat Score is 8. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Toyota Motor stock overvalued right now?
Based on GuruFocus' analysis, Toyota Motor (TM) is currently considered Modestly Undervalued. The stock's GF Value™ is $207.33, compared to a current price of $171.71 — trading 17.2% below its estimated fair value. The current Moat Score is 8. Toyota Motor's overall GF Score™ is 81/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Toyota Motor (TM), the current Moat Score is 8 as of Jun. 26, 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 Toyota Motor (TM) Overvalued in 2026?

Based on GuruFocus' analysis, Toyota Motor stock appears to be undervalued. The current stock price of $171.71 is trading 17.2% below its estimated GF Value™ of $207.33. GuruFocus considers Toyota Motor to be Modestly Undervalued.

Key valuation signals for TM:

  • Moat Score: 8
  • GF Value™: $207.33 vs. price of $171.71 (17.2% below fair value)
  • GF Score™: 81/100 with 3 warning signs

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

Toyota Motor Business Description

Address 1 Toyota-cho, Aichi Prefecture, Toyota, JPN, 471-8571
Founded in 1937, Toyota is one of the world's largest automakers, with 11.3 million units sold at retail in fiscal 2026, including 10.5 million across the Toyota and Lexus brands. Brands include Toyota, Lexus, Daihatsu, and truck maker Hino; market share in Japan is about 50% excluding mini-vehicles, while US share is around 14%. The firm also owns stakes in Denso, a parts supplier, about 20% of Subaru, and holds investments in many other firms, including shares of Uber Technologies, Joby Aviation, Aurora Innovation, Isuzu Motors, and about 5% in each of Mazda and Suzuki. Fiscal 2026 sales excluding financial services were JPY 46.1 trillion. Toyota also has a financing arm and manufactures homes and boats.
81GF Score

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$171.71
Price
$207.33
GF Value