LY (TSE:4689) Moat Score: 2/10 (As of Jul. 16, 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

TSE:4689 LY Corp TSE:4689
82 GF Score
Price 円446.00
GF Value 円488.36
Valuation Fairly Valued
! 6 Warning Signs
View Full Analysis

What is LY Moat Score?

LY TSE:4689 -0.25% 82 Moat Score is 2 as of Jul. 16, 2026. GuruFocus rates TSE:4689 with a GF Score™ of 82/100 and a GF Value™ of 円488.36 (Fairly Valued). The stock has 6 warning signs investors should review. Among 1,117 Retail - Cyclical companies, LY ranks better than 79.86% on this metric.

LY has the Moat Score of 2, which implies that the company might have No Moat - Very weak/transient advantages.

LY has No Moat: LY Corp lacks discernible competitive advantages, with no significant market share, intellectual property, or customer loyalty to provide a sustainable 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 LY might have No Moat - Very weak/transient advantages.

LY  (TSE:4689) 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

LY Moat Score Related Terms

TSE:4689 vs AMZN, BABA, PDD: Moat Score Comparison

For the Internet Retail subindustry, LY'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.

LY Moat Score vs Retail - Cyclical Industry

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

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


TSE:4689
82GF Score
LY Corp TSE:4689
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis
Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 2 mean?
LY (TSE:4689) has a Moat Score of 2 as of Jul. 16, 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, LY ranks #225 out of 1117 companies in the Retail - Cyclical industry, placing it in the top 20.1%.
Is LY's Moat Score too high?
LY's current Moat Score is 2. Based on the distribution chart, LY ranks #225 out of 1117 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, LY has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does LY's Moat Score compare to AMZN and BABA?
According to the Retail - Cyclical industry distribution chart, LY ranks #225 out of 1117 companies for Moat Score. This places LY in the top 20% 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. LY's current Moat Score is 2. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LY stock overvalued right now?
Based on GuruFocus' analysis, LY (TSE:4689) is currently considered Fairly Valued. The stock's GF Value™ is 円488.36, compared to a current price of 円446.00 — trading 8.7% below its estimated fair value. The current Moat Score is 2. LY's overall GF Score™ is 82/100 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 LY (TSE:4689), the current Moat Score is 2 as of Jul. 16, 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 LY (TSE:4689) Overvalued in 2026?

Based on GuruFocus' analysis, LY stock appears to be undervalued. The current stock price of 円446.00 is trading 8.7% below its estimated GF Value™ of 円488.36. GuruFocus considers LY to be Fairly Valued.

Key valuation signals for TSE:4689:

  • Moat Score: 2
  • GF Value™: 円488.36 vs. price of 円446.00 (8.7% below fair value)
  • GF Score™: 82/100 with 6 warning signs

No single metric tells the full story. See the TSE:4689 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

LY Business Description

Address Tokyo Kioicho Kioi Tower, 1-3 Kioicho Chiyoda Ward, Tokyo Garden Terrace, Tokyo, JPN, 102 - 8282
LY is a leading Japanese internet services conglomerate. Its main services are Yahoo Japan, the oldest portal site in Japan that offers a wide variety of services, such as news, e-commerce, financial information, and Line, a national messenger application. In 2019, the company acquired Zozo, a leading online apparel retailer, to grow its e-commerce business. In 2022, LY consolidated with its wholly owned subsidiary PayPay, the most popular QR code payment service in Japan.
82GF Score

Get the complete analysis for TSE:4689

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

円446.00
Price
円488.36
GF Value