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    Is Rakuten Group (TSE:4755) Undervalued As It Pushes Into Direct To Device Satellites?

    Simply Wall St·11/14/2026 03:26:18
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    Rakuten Group (TSE:4755) is moving deeper into telecommunications infrastructure after forming Rakuten AST with AST SpaceMobile to build a direct to device satellite network in Japan backed by J LE0 government support.

    For shareholders, that push into direct to device satellites comes at an awkward moment for Rakuten Group, with the share price up 2.7% over the past week but still down 36.6% year to date. The 1-year total shareholder return is down 33.1%, while the 3-year total shareholder return is up 15.2%. This indicates that long-term holders have seen some recovery, even as shorter-term momentum has faded.

    Scan 53 AI infrastructure stocks if Rakuten Group's push into satellite powered mobile networks has you looking for other businesses building the backbone of next generation connectivity.

    Rakuten Group now straddles a fast growing telecom bet and a history of mixed shareholder returns. The real tension is simple: Does the current share price fairly reflect that satellite push or overshoot it?

    Most Popular Narrative: 28% Undervalued

    Rakuten Group closed at ¥637, compared with the analyst consensus Narrative on Simply Wall St fair value of ¥890.4. This frames the current price as a sizeable discount and puts the focus firmly on whether the ecosystem thesis holds together.

    The main factor that has to go right is the FinTech and mobile ecosystem delivering the planned profitability and synergy uplift, while continued capex and remaining mobile operating losses stay manageable.

    The current valuation implies that the market is discounting Rakuten Group heavily despite evidence of improving profitability and cash generation. Within this narrative, that is viewed as a bullish indication of potential undervaluation.

    See why 5 investors see Rakuten Group as 28% undervalued.

    Result: Fair Value of ¥890.4 (UNDERVALUED)

    Still, the narrative can crack if Rakuten Group struggles to move its mobile business beyond non-GAAP losses, or if ecosystem cross-usage and engagement fail to deepen as assumed.

    Find out about the key risks to this Rakuten Group narrative.

    Next Steps

    Sentiment in this piece leans cautious, so it helps to stress test the numbers yourself and decide where you land on Rakuten Group. To see what the market currently views as the main positives, review the 4 key rewards.

    Looking for more investment ideas beyond Rakuten Group?

    If you stop with Rakuten Group, you only see one angle on the market. Cast the net wider now or risk missing opportunities hiding in plain sight.