Japanese (NIKKEI) Market Analysis & Valuation
UpdatedMay 22, 2022
DataAggregated Company Financials
Companies3924
- 7D0.7%
- 3M-2.4%
- 1Y-2.9%
- YTD-8.2%
Over the last 7 days, the market has remained flat, although notably the Communication Services sector gained 3.3% in that time. Similarly, the market is flat for the past 12 months. Looking forward, earnings are forecast to grow by 8.8% annually.
Market Valuation and Performance
Has the Japanese Market valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Mon, 23 May 2022 | JP¥698.4t | JP¥836.8t | JP¥49.5t | 12.2x |
| Wed, 20 Apr 2022 | JP¥709.4t | JP¥819.1t | JP¥51.1t | 12.4x |
| Fri, 18 Mar 2022 | JP¥710.5t | JP¥821.5t | JP¥51.1t | 12.3x |
| Sun, 13 Feb 2022 | JP¥734.6t | JP¥821.8t | JP¥50.3t | 12.6x |
| Tue, 11 Jan 2022 | JP¥749.5t | JP¥802.5t | JP¥48.4t | 13x |
| Thu, 09 Dec 2021 | JP¥755.6t | JP¥799.9t | JP¥48.4t | 13.3x |
| Sat, 06 Nov 2021 | JP¥774.4t | JP¥795.5t | JP¥47.1t | 14.2x |
| Mon, 04 Oct 2021 | JP¥754.6t | JP¥786.4t | JP¥44.6t | 14.4x |
| Wed, 01 Sep 2021 | JP¥751.8t | JP¥788.7t | JP¥44.6t | 14.7x |
| Thu, 08 Jul 2021 | JP¥740.1t | JP¥788.5t | JP¥44.6t | 14.7x |
| Wed, 31 Mar 2021 | JP¥742.6t | JP¥756.9t | JP¥34.9t | 16.7x |
| Sat, 02 Jan 2021 | JP¥686.9t | JP¥747.2t | JP¥23.4t | 17.1x |
| Tue, 06 Oct 2020 | JP¥619.6t | JP¥754.4t | JP¥21.3t | 17.2x |
| Fri, 10 Jul 2020 | JP¥593.6t | JP¥774.2t | JP¥22.4t | 16.1x |
| Thu, 02 Apr 2020 | JP¥527.2t | JP¥805.5t | JP¥29.5t | 13.3x |
| Sun, 05 Jan 2020 | JP¥649.9t | JP¥814.5t | JP¥37.5t | 16.2x |
| Wed, 09 Oct 2019 | JP¥601.5t | JP¥820.8t | JP¥39.0t | 14.5x |
| Tue, 02 Jul 2019 | JP¥588.7t | JP¥819.0t | JP¥40.9t | 14.3x |
Median PE Ratio
13.9x
Current Market PE
- Investors are relatively neutral on the 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 14.9x.
Past Earnings Growth
- The earnings for Japanese listed companies have grown 6.3% per year over the last three years, while revenues have remained steady.
- This means that companies overall are more efficiently conducting business since profits are increasing while sales have been flat.
Sector Trends
Which sectors have driven the changes within the Japanese Market?
| JP Market | 0.71% | |
| Telecom | 3.27% | |
| Energy | 2.92% | |
| Industrials | 1.40% | |
| Tech | 1.05% | |
| Real Estate | 0.74% | |
| Consumer Discretionary | 0.62% | |
| Materials | 0.32% | |
| Healthcare | 0.086% | |
| Financials | -0.62% | |
| Utilities | -1.64% | |
| Consumer Staples | -2.28% | |
Sector PE
- Investors are most optimistic about the Real Estate sector, which is trading close to its 3-year average PE ratio of 18.6x.
- Analysts are expecting annual earnings growth of 6.4%, which is lower than the prior year's growth of 7.7% per year.
- This could indicate that the market believes that analysts are underestimating future growth.
- Investors are most pessimistic about the Energy sector, which is trading below its 3-year average of 10.3x.
Forecasted Growth
- Analysts are most optimistic on the Utilities sector, expecting annual earnings growth of 21% over the next 5 years.
- This is better than its past earnings decline of 21% per year.
- In contrast, the Energy sector is expected to see its earnings decline by 15% 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 | |
|---|---|---|---|---|---|---|
| 9433 KDDI | JP¥4.53k | 6.6% +JP¥614.7b | 22.2% | PS14.8x | Telecom | |
| 6098 Recruit Holdings | JP¥4.89k | 7.4% +JP¥549.7b | -8.9% | PS26.9x | Industrials | |
| 6758 Sony Group | JP¥11.53k | 3.8% +JP¥525.5b | 9.5% | PS16.2x | Consumer Discretionary | |
| 4661 Oriental Land | JP¥18.35k | 6.5% +JP¥368.5b | 21.9% | PS744.8x | Consumer Discretionary | |
| 9432 Nippon Telegraph and Telephone | JP¥3.89k | 2.7% +JP¥364.8b | 34.2% | PS11.6x | Telecom |