Rakuten Group (FRA:RAKA) Moat Score: 6/10 (As of Jul. 03, 2026)


FRA:RAKA Rakuten Group Inc FRA:RAKA
61 GF Score
Price €3.92
GF Value €4.86
! 6 Warning Signs
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What is Rakuten Group Moat Score?

Rakuten Group FRA:RAKA +2.62% 61 Moat Score is 6 as of Jul. 03, 2026. 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 1,118 Retail - Cyclical companies, Rakuten Group ranks better than 97.85% on this metric.

Rakuten Group has the Moat Score of 6, which implies that the company might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

Rakuten Group has Narrow Moat: Rakuten Group Inc has a strong narrow moat with a robust brand, network effects from its e-commerce platform, and customer loyalty. While it has some pricing power and innovation capabilities, intense competition in the tech sector prevents it from achieving a wide moat.

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 Rakuten Group might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

Rakuten Group  (FRA:RAKA) 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

Rakuten Group Moat Score Related Terms

FRA:RAKA vs AMZN, BABA, PDD: Moat Score Comparison

For the Internet Retail subindustry, Rakuten Group'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.

Rakuten Group Moat Score vs Retail - Cyclical Industry

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

* The bar in red indicates where Rakuten Group's Moat Score falls into.


FRA:RAKA
61GF Score
Rakuten Group Inc FRA:RAKA
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 6 mean?
Rakuten Group (FRA:RAKA) has a Moat Score of 6 as of Jul. 03, 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, Rakuten Group ranks #24 out of 1118 companies in the Retail - Cyclical industry, placing it in the top 2.1%.
Is Rakuten Group's Moat Score too high?
Rakuten Group's current Moat Score is 6. Based on the distribution chart, Rakuten Group ranks #24 out of 1118 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 Moat Score compare to AMZN and BABA?
According to the Retail - Cyclical industry distribution chart, Rakuten Group ranks #24 out of 1118 companies for Moat Score. This places Rakuten Group in the top 2% 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 Retail - Cyclical company?
A good Moat Score depends on the Retail - Cyclical 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. Rakuten Group's current Moat Score is 6. 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 Moat Score of 6. The stock's GF Value™ is €4.86, compared to a current price of €3.92 — trading 19.3% below its estimated fair value. The current Moat Score is 6. 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 Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Rakuten Group (FRA:RAKA), the current Moat Score is 6 as of Jul. 03, 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 €3.92 is trading 19.3% below its estimated GF Value™ of €4.86.

Key valuation signals for FRA:RAKA:

  • Moat Score: 6
  • GF Value™: €4.86 vs. price of €3.92 (19.3% below fair value)
  • GF Score™: 61/100 with 6 warning signs

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

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

€3.92
Price
€4.86
GF Value