Toyota MotorTM +3.00%81 PEG Ratio is 0.68 as of Jun. 26, 2026, which is 39% below its 10-year median of 1.11. 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 673 Vehicles & Parts companies, Toyota Motor ranks better than 66.12% on this metric.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Toyota Motor's PEG Ratio or its related term are showing as below:
TM'
s PEG Ratio Range Over the Past 10 Years
Min: 0.22 Med: 1.11 Max: 56.93
Current: 0.68
During the past 13 years, Toyota Motor's highest PEG Ratio was 56.93. The lowest was 0.22. And the median was 1.11.
TM's PEG Ratio is ranked better than 66.12% of 673
companies
in the Vehicles & Parts industry
Industry Median: 1.1
vs TM: 0.68
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Toyota Motor (NYSE:TM) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Toyota Motor PEG Ratio Related Terms
Toyota Motor PEG Ratio Historical Data
* Premium members only.
The historical data trend for Toyota Motor's PEG Ratio 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.
For the Auto Manufacturers subindustry, Toyota Motor's PEG Ratio, along with its competitors' market caps and PEG Ratio 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 PEG Ratio vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Toyota Motor's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Toyota Motor's PEG Ratio falls into.
* 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Toyota Motor (TM) has a PEG Ratio of 0.68 as of Jun. 26, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Toyota Motor and its competitors. This is 39% below median its historical median of 1.11. Over the past decade, Toyota Motor's PEG Ratio has ranged from 0.22 to 56.93. According to the industry distribution chart, Toyota Motor ranks #228 out of 673 companies in the Vehicles & Parts industry, placing it in the top 33.9%.
Is Toyota Motor's PEG Ratio too high?
Toyota Motor's current PEG Ratio of 0.68 is 39% below median its 10-year median of 1.11. Over the past 10 years, this metric has ranged from a low of 0.22 to a high of 56.93. The Vehicles & Parts industry median PEG Ratio is 1.10. Toyota Motor's value of 0.68 is 38.2% below this industry median. Based on the distribution chart, Toyota Motor ranks #228 out of 673 companies in the Vehicles & Parts industry, which is above the industry midpoint. 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 PEG Ratio compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Toyota Motor ranks #228 out of 673 companies for PEG Ratio. This puts Toyota Motor in the upper half of its industry. The industry median PEG Ratio is 1.10. Toyota Motor's value of 0.68 is 38.2% below this benchmark. Historically, Toyota Motor's own PEG Ratio has ranged from 0.22 to 56.93 over the past decade. While the company's 10-year median is 1.11 vs. the industry median of 1.10, Toyota Motor 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 PEG Ratio for a Vehicles & Parts company?
The median PEG Ratio among Vehicles & Parts companies is 1.10, based on 673 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Toyota Motor's current PEG Ratio of 0.68 is 38.2% 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 PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Toyota Motor and its competitors. For the Vehicles & Parts industry, the median PEG Ratio is 1.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Toyota Motor's current PEG Ratio is 0.68, which is 39% below median its own 10-year median of 1.11. 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 $171.49 — trading 17.3% below its estimated fair value. The current PEG Ratio is 0.68, which is 39% below median its 10-year median of 1.11 and 38.2% below the Vehicles & Parts industry median of 1.10. 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 PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For Toyota Motor (TM), the current PEG Ratio is 0.68 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 $171.49 is trading 17.3% below its estimated GF Value™ of $207.33.
GuruFocus considers Toyota Motor to be Modestly Undervalued.
Key valuation signals for TM:
PEG Ratio: 0.68 (39% below median its 10-year median of 1.11)
GF Value™: $207.33 vs. price of $171.49 (17.3% below fair value)
Industry Position: 38.2% below the Vehicles & Parts median (#228 of 673)
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.
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.
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