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Japanese (NIKKEI) Market Analysis & Valuation

UpdatedMar 18, 2026
DataAggregated Company Financials
Companies3922
  • 7D-0.9%
  • 3M7.8%
  • 1Y29.7%
  • YTD4.4%

In the last week, the market has stayed flat, however the Energy sector stood out, gaining 5.4%. As for the longer term, the market has risen 30% in the past 12 months. Looking forward, earnings are forecast to grow by 9.9% annually.

Trending IndustriesOil and GasBiotechSoftwareRenewable Energy

Market Valuation and Performance

Has the Japanese Market valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 18 Mar 2026JP¥1229.1tJP¥1039.6tJP¥65.6t14.7x18.7x1.2x
Fri, 13 Feb 2026JP¥1310.5tJP¥1037.1tJP¥64.9t15.4x20.2x1.3x
Sun, 11 Jan 2026JP¥1190.9tJP¥1027.3tJP¥64.3t14.7x18.5x1.2x
Tue, 09 Dec 2025JP¥1146.0tJP¥1030.1tJP¥64.2t14.1x17.8x1.1x
Thu, 06 Nov 2025JP¥1116.2tJP¥1028.0tJP¥61.6t14.2x18.1x1.1x
Sat, 04 Oct 2025JP¥1070.0tJP¥1023.7tJP¥59.7t14.5x17.9x1x
Mon, 01 Sep 2025JP¥1061.4tJP¥1026.5tJP¥59.8t14.5x17.7x1x
Wed, 30 Jul 2025JP¥1001.5tJP¥1021.0tJP¥61.6t13.9x16.3x1x
Fri, 27 Jun 2025JP¥969.7tJP¥1029.4tJP¥63.6t13.3x15.3x0.9x
Sun, 25 May 2025JP¥952.3tJP¥1032.3tJP¥63.7t12.8x14.9x0.9x
Tue, 22 Apr 2025JP¥888.7tJP¥1021.5tJP¥64.3t12.6x13.8x0.9x
Thu, 20 Mar 2025JP¥971.6tJP¥1020.1tJP¥64.3t13.4x15.1x1x
Sat, 15 Feb 2025JP¥962.5tJP¥1018.9tJP¥64.0t13.3x15x0.9x
Mon, 13 Jan 2025JP¥946.0tJP¥997.1tJP¥61.1t13.5x15.5x0.9x
Wed, 11 Dec 2024JP¥955.0tJP¥1009.4tJP¥61.8t13.5x15.5x0.9x
Fri, 08 Nov 2024JP¥956.9tJP¥1002.6tJP¥59.5t13.5x16.1x1x
Sun, 06 Oct 2024JP¥947.6tJP¥1000.1tJP¥60.1t13.5x15.8x0.9x
Tue, 03 Sep 2024JP¥956.7tJP¥999.5tJP¥60.0t13.6x16x1x
Thu, 01 Aug 2024JP¥984.1tJP¥989.1tJP¥58.8t14.5x16.7x1x
Sat, 29 Jun 2024JP¥985.4tJP¥987.1tJP¥58.4t14.6x16.9x1x
Mon, 27 May 2024JP¥964.1tJP¥987.7tJP¥58.5t14x16.5x1x
Wed, 24 Apr 2024JP¥946.9tJP¥975.0tJP¥57.0t14.4x16.6x1x
Fri, 22 Mar 2024JP¥996.7tJP¥976.6tJP¥56.9t14.8x17.5x1x
Sun, 18 Feb 2024JP¥938.6tJP¥976.9tJP¥56.9t14.2x16.5x1x
Tue, 16 Jan 2024JP¥907.8tJP¥971.3tJP¥52.5t14.6x17.3x0.9x
Thu, 14 Dec 2023JP¥852.7tJP¥974.3tJP¥52.5t14x16.2x0.9x
Sat, 11 Nov 2023JP¥848.3tJP¥975.7tJP¥52.5t14x16.1x0.9x
Mon, 09 Oct 2023JP¥824.4tJP¥971.2tJP¥55.2t13.9x14.9x0.8x
Wed, 06 Sep 2023JP¥865.7tJP¥971.1tJP¥55.2t14.5x15.7x0.9x
Fri, 04 Aug 2023JP¥827.4tJP¥964.0tJP¥52.7t13.9x15.7x0.9x
Sun, 02 Jul 2023JP¥835.8tJP¥957.1tJP¥50.6t14x16.5x0.9x
Tue, 30 May 2023JP¥790.1tJP¥958.8tJP¥51.1t13.4x15.5x0.8x
Thu, 27 Apr 2023JP¥744.9tJP¥935.2tJP¥46.5t13x16x0.8x
Sat, 25 Mar 2023JP¥709.0tJP¥932.7tJP¥46.1t12.6x15.4x0.8x
Price to Earnings Ratio

15.4x


Total Market Cap: JP¥709.0tTotal Earnings: JP¥46.1tTotal Revenue: JP¥932.7tTotal Market Cap vs Earnings and Revenue0%0%0%
Japanese Market Price to Earnings3Y Average 16.3x202420252026
Current Market PE
  • Investors are optimistic on the Japanese market, and appear confident in strong long term growth rates.
  • The market is trading at a PE ratio of 18.7x which is higher than its 3-year average PE of 16.3x.
Past Earnings Growth
  • The earnings for Japanese listed companies have grown 12% per year over the last three years.
  • Revenues for these companies have grown 3.7% 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-0.93%
Energy5.42%
Utilities2.19%
Telecom0.29%
Healthcare0.07%
Consumer Staples0.063%
Industrials-0.055%
Materials-0.61%
Tech-1.38%
Real Estate-1.70%
Consumer Discretionary-1.89%
Financials-3.11%
Sector PE
  • Investors favour the Tech sector the most for future growth, which is trading above its 3-year average PE ratio of 25.0x.
    • The market's confidence is likely because analysts are expecting annual earnings growth of 17.9%, which is higher than its past year's earnings growth of 11.4% per year.
  • The Telecom sector is the least preferred by investors for future growth, which is trading below its 3-year average of 24.0x.
Forecasted Growth
  • Analysts are most optimistic on the Tech sector, expecting annual earnings growth of 18% over the next 5 years.
  • This is better than its past earnings growth rate of 11% per year.
  • In contrast, the Telecom sector is expected to see its earnings decline by 4.4% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuationSector
8031 MitsuiJP¥6.63k11.2%
+JP¥1.9t		122.8%PE21.9xIndustrials
8058 MitsubishiJP¥5.72k9.5%
+JP¥1.8t		102.4%PE28.7xIndustrials
7011 Mitsubishi Heavy IndustriesJP¥4.98k8.0%
+JP¥1.2t		72.4%PE53.8xIndustrials
285A Kioxia HoldingsJP¥23.35k9.2%
+JP¥1.1t		670.5%PE76.2xTech
4063 Shin-Etsu ChemicalJP¥6.70k9.0%
+JP¥1.0t		48.2%PE25.6xMaterials
See more

Market Insights

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From Europe to Asia, global markets surged in 2025 while U.S. earnings growth became more concentrated. Early signs suggest this might continue.
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Latest News

285A
JP¥23,345.00
Kioxia Holdings
7D
9.2%
1Y
670.5%
7011
JP¥4,984.00
Mitsubishi Heavy Industries
7D
8.0%
1Y
72.4%

7011: Conviction List Status Will Magnify Risks Around Lofty Future P/E

Analysts have nudged their price target for Mitsubishi Heavy Industries to about ¥4,025 from roughly ¥4,000, citing updated assumptions on growth, profitability and valuation that were strong enough for the stock to be added to a major APAC Conviction List. Analyst Commentary Goldman Sachs has placed Mitsubishi Heavy Industries on its APAC Conviction List, which signals strong interest from part of the analyst community.
8058
JP¥5,718.00
Mitsubishi
7D
9.5%
1Y
102.4%

8058: Future Returns Will Depend On Clarity Of Capital And LNG Exit Plans

Mitsubishi's analyst price target has shifted from ¥4,155.77 to ¥4,537.91, with analysts pointing to updated assumptions on profit margin and future P/E, while also taking into account recent Neutral coverage and a ¥3,900 target from broader Street research. Analyst Commentary Bullish Takeaways Bullish analysts see the refreshed profit margin assumptions as supportive of the higher ¥4,537.91 price target, suggesting earnings power that could justify a richer P/E than previously assumed.
8031
JP¥6,634.00
Mitsui
7D
11.2%
1Y
122.8%

8031: Elevated Future P/E And Earnings Guidance Will Sustain Downside Risk

Analysts have kept Mitsui's fair value estimate steady at ¥4,190. Only small adjustments to the discount rate, revenue growth, profit margin assumptions and future P/E expectations are guiding this unchanged price target.
7267
JP¥1,347.00
Honda Motor
7D
-8.1%
1Y
-11.1%
6301
JP¥6,652.00
Komatsu
7D
-8.9%
1Y
44.2%

6301: Elevated P/E And Unproven Ammonia Engine Project Will Pressure Returns

Analysts have nudged their fair value estimate for Komatsu higher from about ¥5,973 to roughly ¥6,107, pointing to slightly adjusted assumptions around the discount rate, revenue growth, profit margin, and future P/E as the key drivers. What's in the News Komatsu has scheduled a board meeting for Feb 16, 2026, to consider changes in representative director positions, which could affect top leadership and decision making (company event).
9984
JP¥3,763.00
SoftBank Group
7D
-3.2%
1Y
92.8%
7203
JP¥3,410.00
Toyota Motor
7D
-2.8%
1Y
17.9%

7203: US EV Push And Share Repurchases Will Support Bullish Outlook

Analysts have nudged their price target on Toyota Motor higher, with fair value moving from about ¥3,979 to roughly ¥4,033 as they factor in updated assumptions for revenue growth, profit margins, the discount rate and future P/E. What's in the News Board meeting scheduled for March 6, 2026 to consider and resolve changes to the tender offer for Toyota's own shares, including terms for the repurchase program (Key Developments).
4519
JP¥8,985.00
Chugai Pharmaceutical
7D
-5.1%
1Y
33.4%

4519: Gene Therapy Launch And Rising Dividends Will Support Future Upside Potential

Analysts have raised their price target for Chugai Pharmaceutical from ¥12,406 to ¥13,300, citing updated assumptions related to slightly higher revenue growth, profit margins and future P/E levels. What's in the News Chugai has launched ELEVIDYS, a gene therapy for Duchenne muscular dystrophy, in Japan after its listing on the National Health Insurance price list.
4063
JP¥6,701.00
Shin-Etsu Chemical
7D
9.0%
1Y
48.2%
8306
JP¥2,736.00
Mitsubishi UFJ Financial Group
7D
1.9%
1Y
29.9%

8306: Executive Changes And Share Buybacks Will Still Fail To Support Optimism

Analysts have raised their price target on Mitsubishi UFJ Financial Group from ¥1,857.94 to ¥2,120.00. This change reflects updated assumptions about discount rates, profit margins and future P/E expectations.
6758
JP¥3,295.00
Sony Group
7D
-4.4%
1Y
-10.5%

6758: Content Franchises And Buybacks Will Offset Emerging AI Music Risks

Narrative Update on Sony Group The analyst price target for Sony Group has shifted slightly from ¥4,990.87 to ¥4,969.13, as analysts factor in updated assumptions for revenue growth, profit margins, discount rates and future P/E, while also weighing fresh concerns around AI driven risks to the music business. Analyst Commentary Recent Street research around Sony Group focuses heavily on the music segment, where AI generated content is emerging as a key debate for both upside and risk to the equity story.
5802
JP¥10,020.00
Sumitomo Electric Industries
7D
-6.5%
1Y
269.0%
8002
JP¥5,827.00
Marubeni
7D
6.5%
1Y
125.1%
7182
JP¥2,680.50
JAPAN POST BANK
7D
-2.7%
1Y
69.7%
9983
JP¥65,960.00
Fast Retailing
7D
3.8%
1Y
44.6%