An Intrinsic Calculation For Hitachi, Ltd. (TSE:6501) Suggests It's 44% Undervalued
May 22
Japanese (NIKKEI) Market Analysis & Valuation
UpdatedMay 22, 2024
DataAggregated Company Financials
Companies3978
- 7D0.8%
- 3M3.8%
- 1Y24.8%
- YTD14.0%
In the last week, the market has stayed flat, however the Utilities sector stood out, gaining 4.4%. More promisingly, the market is up 25% over the past year. As for the next few years, earnings are expected to grow by 8.5% per annum.
Market Valuation and Performance
Has the Japanese Market valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 23 May 2024 | JP¥973.0t | JP¥989.2t | JP¥58.5t | 14.1x | 16.6x | 1x |
| Sat, 20 Apr 2024 | JP¥950.0t | JP¥975.0t | JP¥57.0t | 14.4x | 16.7x | 1x |
| Mon, 18 Mar 2024 | JP¥953.0t | JP¥975.9t | JP¥56.9t | 14.5x | 16.7x | 1x |
| Wed, 14 Feb 2024 | JP¥934.7t | JP¥974.2t | JP¥56.6t | 14.5x | 16.5x | 1x |
| Fri, 12 Jan 2024 | JP¥881.9t | JP¥971.1t | JP¥52.4t | 14.5x | 16.8x | 0.9x |
| Sun, 10 Dec 2023 | JP¥842.6t | JP¥974.3t | JP¥52.5t | 13.9x | 16x | 0.9x |
| Tue, 07 Nov 2023 | JP¥856.8t | JP¥972.9t | JP¥56.8t | 14x | 15.1x | 0.9x |
| Thu, 05 Oct 2023 | JP¥842.2t | JP¥971.2t | JP¥55.2t | 13.6x | 15.3x | 0.9x |
| Sat, 02 Sep 2023 | JP¥855.9t | JP¥971.1t | JP¥55.2t | 14.3x | 15.5x | 0.9x |
| Mon, 31 Jul 2023 | JP¥836.6t | JP¥961.3t | JP¥51.5t | 14.1x | 16.2x | 0.9x |
| Wed, 28 Jun 2023 | JP¥823.1t | JP¥957.2t | JP¥51.1t | 13.8x | 16.1x | 0.9x |
| Fri, 26 May 2023 | JP¥787.8t | JP¥958.8t | JP¥51.0t | 13.5x | 15.4x | 0.8x |
| Sun, 23 Apr 2023 | JP¥748.2t | JP¥935.1t | JP¥46.6t | 13x | 16x | 0.8x |
| Tue, 21 Mar 2023 | JP¥692.1t | JP¥922.5t | JP¥46.1t | 12.4x | 15x | 0.8x |
| Thu, 16 Feb 2023 | JP¥731.9t | JP¥932.4t | JP¥46.7t | 12.6x | 15.7x | 0.8x |
| Sat, 14 Jan 2023 | JP¥702.0t | JP¥901.8t | JP¥49.1t | 12.1x | 14.3x | 0.8x |
| Mon, 12 Dec 2022 | JP¥727.1t | JP¥902.9t | JP¥49.1t | 12.5x | 14.8x | 0.8x |
| Wed, 09 Nov 2022 | JP¥717.9t | JP¥884.8t | JP¥46.0t | 12.4x | 15.6x | 0.8x |
| Fri, 07 Oct 2022 | JP¥716.6t | JP¥863.7t | JP¥45.6t | 12.4x | 15.7x | 0.8x |
| Sun, 04 Sep 2022 | JP¥719.3t | JP¥862.7t | JP¥45.5t | 12.6x | 15.8x | 0.8x |
| Tue, 02 Aug 2022 | JP¥729.9t | JP¥842.7t | JP¥48.3t | 12.9x | 15.1x | 0.9x |
| Thu, 30 Jun 2022 | JP¥706.0t | JP¥839.1t | JP¥49.5t | 12.5x | 14.3x | 0.8x |
| Sat, 28 May 2022 | JP¥697.9t | JP¥835.9t | JP¥49.3t | 12.2x | 14.1x | 0.8x |
| Mon, 25 Apr 2022 | JP¥712.0t | JP¥819.3t | JP¥51.1t | 12.3x | 13.9x | 0.9x |
| Wed, 23 Mar 2022 | JP¥722.7t | JP¥821.5t | JP¥51.1t | 12.5x | 14.2x | 0.9x |
| Fri, 18 Feb 2022 | JP¥721.6t | JP¥821.8t | JP¥50.9t | 12.4x | 14.2x | 0.9x |
| Sun, 16 Jan 2022 | JP¥741.5t | JP¥804.7t | JP¥48.5t | 12.9x | 15.3x | 0.9x |
| Tue, 14 Dec 2021 | JP¥746.9t | JP¥799.9t | JP¥48.4t | 13.2x | 15.4x | 0.9x |
| Thu, 11 Nov 2021 | JP¥762.6t | JP¥800.4t | JP¥47.3t | 13.7x | 16.1x | 1x |
| Sat, 09 Oct 2021 | JP¥744.8t | JP¥787.1t | JP¥44.7t | 14.3x | 16.7x | 0.9x |
| Mon, 06 Sep 2021 | JP¥773.3t | JP¥788.3t | JP¥44.7t | 15x | 17.3x | 1x |
| Wed, 04 Aug 2021 | JP¥729.6t | JP¥788.7t | JP¥44.6t | 14.5x | 16.3x | 0.9x |
Price to Earnings Ratio
20.6x
Current Market PE
- Investors are relatively neutral on the Japanese market at the moment, indicating that they expect earnings will grow in line with historical growth rates.
- The market is trading close to its 3-year average PE ratio of 17.5x.
Past Earnings Growth
- The earnings for Japanese listed companies have grown 18% per year over the last three years.
- Revenues for these companies have grown 9.3% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Sector Trends
Which sectors have driven the changes within the Japanese Market?
| JP Market | 0.77% | |
| Utilities | 4.36% | |
| Tech | 2.07% | |
| Industrials | 1.33% | |
| Financials | 1.31% | |
| Consumer Discretionary | 0.97% | |
| Energy | 0.35% | |
| Materials | 0.35% | |
| Healthcare | -0.13% | |
| Consumer Staples | -0.14% | |
| Telecom | -1.82% | |
| Real Estate | -1.99% | |
Sector PE
- Investors favour the Healthcare sector the most for future growth, which is trading above its 3-year average PE ratio of 28.2x.
- The market's confidence is likely because analysts are expecting annual earnings growth of 12.7%, which is higher than its past year's earnings growth of 7.8% per year.
- The Utilities sector is the least preferred by investors for future growth. Although, investor sentiment seems to have improved given that it's trading above its 3-year average.
Forecasted Growth
- Analysts are most optimistic on the Tech sector, expecting annual earnings growth of 15% over the next 5 years.
- This is better than its past earnings growth rate of 6.4% per year.
- In contrast, the Utilities sector is expected to see its earnings decline by 13% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | Sector | |
|---|---|---|---|---|---|---|
| 6098 Recruit Holdings | JP¥7.69k | 8.8% +JP¥954.4b | 74.0% | PE33.5x | Industrials | |
| 8316 Sumitomo Mitsui Financial Group | JP¥9.82k | 6.7% +JP¥814.7b | 74.1% | PB0.9x | Financials | |
| 8031 Mitsui | JP¥8.24k | 5.4% +JP¥634.9b | 86.0% | PE11.6x | Industrials | |
| 8725 MS&AD Insurance Group Holdings | JP¥3.13k | 13.3% +JP¥597.3b | 95.9% | PE13.5x | Financials | |
| 8035 Tokyo Electron | JP¥36.18k | 2.7% +JP¥439.8b | 98.2% | PE46x | Tech |
