Summary

• SoftBank Group trades at a significant discount to its official NAV, with ADRs at $14.74 vs. a published NAV of $17.11, excluding Arm's recent rerating.
• Arm's market value has surged since SoftBank's last NAV update, suggesting the true NAV is materially higher and the market is underappreciating SFTBY's asset base.
• Key catalysts include further Arm rerating, PayPay monetization, improved funding transparency, and portfolio simplification, all of which could narrow the HoldCo discount.
• I see a base case rerating for SFTBY ADRs toward $19.5 and up to $22.1 in a bull scenario as asset values are recognized and funding risks recede.

Investment Thesis

SoftBank Group (SFTBY) remains, in my view, an undervalued stock because the market still looks at the company as a funding vehicle with a complex structure, while not fully taking into account the value of the assets it

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