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Japanese (NIKKEI) Market Analysis & Valuation

UpdatedJan 19, 2026
DataAggregated Company Financials
Companies3940
  • 7D3.8%
  • 3M12.0%
  • 1Y35.5%
  • YTD4.9%

Over the last 7 days, the market has risen 3.8%, driven by gains of 4.8% in the Industrials sector. In the last year, the market has climbed 35%. As for the next few years, earnings are expected to grow by 8.8% per annum.

Trending IndustriesOil and GasBiotechSoftwareRenewable Energy

Market Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 19 Jan 2026JP¥1235.2tJP¥1027.4tJP¥64.4t15.1x19.2x1.2x
Wed, 17 Dec 2025JP¥1141.1tJP¥1030.1tJP¥64.2t14.2x17.8x1.1x
Fri, 14 Nov 2025JP¥1153.0tJP¥1031.6tJP¥64.2t14.3x18x1.1x
Sun, 12 Oct 2025JP¥1092.0tJP¥1023.5tJP¥59.8t14.4x18.3x1.1x
Tue, 09 Sep 2025JP¥1080.2tJP¥1026.4tJP¥59.8t14.7x18.1x1.1x
Thu, 07 Aug 2025JP¥1021.6tJP¥1021.2tJP¥60.3t14.2x16.9x1x
Sat, 05 Jul 2025JP¥974.5tJP¥1027.1tJP¥62.7t13.3x15.5x0.9x
Mon, 02 Jun 2025JP¥974.4tJP¥1033.2tJP¥63.7t13.1x15.3x0.9x
Wed, 30 Apr 2025JP¥925.9tJP¥1022.1tJP¥64.4t12.9x14.4x0.9x
Fri, 28 Mar 2025JP¥976.4tJP¥1020.9tJP¥64.4t13.6x15.2x1x
Sun, 23 Feb 2025JP¥953.7tJP¥1020.2tJP¥64.4t13.1x14.8x0.9x
Tue, 21 Jan 2025JP¥943.8tJP¥1010.1tJP¥61.9t13.4x15.2x0.9x
Thu, 19 Dec 2024JP¥949.4tJP¥1007.8tJP¥61.6t13.4x15.4x0.9x
Sat, 16 Nov 2024JP¥945.7tJP¥1006.7tJP¥60.9t13.5x15.5x0.9x
Mon, 14 Oct 2024JP¥950.8tJP¥999.1tJP¥60.1t13.5x15.8x1x
Wed, 11 Sep 2024JP¥910.3tJP¥1000.0tJP¥60.1t13.3x15.1x0.9x
Fri, 09 Aug 2024JP¥869.6tJP¥995.0tJP¥59.2t12.5x14.7x0.9x
Sun, 07 Jul 2024JP¥1008.6tJP¥986.0tJP¥58.3t14.4x17.3x1x
Tue, 04 Jun 2024JP¥982.5tJP¥989.6tJP¥58.6t14.2x16.8x1x
Thu, 02 May 2024JP¥965.8tJP¥974.6tJP¥56.5t14.4x17.1x1x
Sat, 30 Mar 2024JP¥987.1tJP¥975.9tJP¥56.9t14.9x17.4x1x
Mon, 26 Feb 2024JP¥950.8tJP¥975.7tJP¥56.9t14.3x16.7x1x
Wed, 24 Jan 2024JP¥913.1tJP¥971.4tJP¥52.5t14.7x17.4x0.9x
Fri, 22 Dec 2023JP¥841.3tJP¥971.1tJP¥52.5t13.9x16x0.9x
Sun, 19 Nov 2023JP¥865.0tJP¥976.9tJP¥52.7t14x16.4x0.9x
Tue, 17 Oct 2023JP¥839.6tJP¥971.5tJP¥55.2t14x15.2x0.9x
Thu, 14 Sep 2023JP¥864.7tJP¥971.2tJP¥55.2t14.4x15.7x0.9x
Sat, 12 Aug 2023JP¥839.5tJP¥968.8tJP¥55.3t14x15.2x0.9x
Mon, 10 Jul 2023JP¥823.4tJP¥957.2tJP¥50.6t13.9x16.3x0.9x
Wed, 07 Jun 2023JP¥816.6tJP¥959.1tJP¥51.1t13.6x16x0.9x
Fri, 05 May 2023JP¥762.5tJP¥941.9tJP¥47.9t13.4x15.9x0.8x
Sun, 02 Apr 2023JP¥736.4tJP¥933.9tJP¥46.6t12.9x15.8x0.8x
Tue, 28 Feb 2023JP¥734.4tJP¥934.5tJP¥46.7t12.8x15.7x0.8x
Thu, 26 Jan 2023JP¥727.1tJP¥903.3tJP¥49.0t12.6x14.8x0.8x
Price to Earnings Ratio

14.8x


Total Market Cap: JP¥727.1tTotal Earnings: JP¥49.0tTotal Revenue: JP¥903.3tTotal Market Cap vs Earnings and Revenue0%0%0%
Japanese Market Price to Earnings3Y Average 16.1x202420252026
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 19.2x which is higher than its 3-year average PE of 16.1x.
Past Earnings Growth
  • The earnings for Japanese listed companies have grown 9.5% per year over the last three years.
  • Revenues for these companies have grown 4.4% 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 Market3.79%
Financials6.99%
Tech6.30%
Materials6.25%
Industrials4.75%
Energy3.98%
Consumer Discretionary3.13%
Utilities1.76%
Real Estate1.59%
Consumer Staples-0.10%
Telecom-1.17%
Healthcare-1.21%
Sector PE
  • Investors favour the Tech sector the most for future growth, which is trading above its 3-year average PE ratio of 24.3x.
    • Analysts expect its future annual earnings growth (14.5%) to be largely in line with prior year's earnings growth.
    • The market's confidence could indicate that the market believes that analysts are underestimating future growth.
  • 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 Materials sector, expecting annual earnings growth of 15% over the next 5 years.
  • This is better than its past earnings growth rate of 7.2% per year.
  • In contrast, the Telecom sector is expected to see its earnings decline by 3.8% 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
8306 Mitsubishi UFJ Financial GroupJP¥2.95k11.8%
+JP¥3.5t		54.2%PB1.6xFinancials
7203 Toyota MotorJP¥3.62k6.9%
+JP¥3.1t		26.2%PE10.2xConsumer Discretionary
7011 Mitsubishi Heavy IndustriesJP¥4.88k14.4%
+JP¥2.1t		133.6%PE62.3xIndustrials
8035 Tokyo ElectronJP¥42.18k11.3%
+JP¥2.0t		58.3%PE35.7xTech
8411 Mizuho Financial GroupJP¥6.86k10.7%
+JP¥1.6t		72.3%PB1.5xFinancials
See more

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4568
JP¥3,270.00
Daiichi Sankyo Company
7D
-7.7%
1Y
-26.0%
8411
JP¥6,856.00
Mizuho Financial Group
7D
10.7%
1Y
72.3%
8035
JP¥42,180.00
Tokyo Electron
7D
11.3%
1Y
58.3%
4519
JP¥8,228.00
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7D
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1Y
23.0%

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6758
JP¥3,780.00
Sony Group
7D
-2.5%
1Y
16.7%
7203
JP¥3,623.00
Toyota Motor
7D
6.9%
1Y
26.2%

7203: Battery Build Out, Legal Risks And Steady Outlook Will Shape Returns

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4506
JP¥2,388.00
Sumitomo Pharma
7D
-17.9%
1Y
336.6%

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Jan 10
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285A
JP¥15,210.00
Kioxia Holdings
7D
19.9%
1Y
790.5%
9020
JP¥3,929.00
East Japan Railway
7D
-5.2%
1Y
48.5%

9020: Upgraded Guidance And Dividend Outlook Will Support Further Upside

Analysts have lifted their price target on East Japan Railway from ¥4,700 to ¥5,300, citing updated assumptions around revenue growth, profit margins, a slightly lower discount rate, and a modestly higher future P/E multiple. What's in the News East Japan Railway revised earnings guidance for the fiscal year ending March 31, 2026, now expecting operating revenues of ¥3,058,000m, operating income of ¥405,000m, profit attributable to owners of parent of ¥237,000m, and basic EPS of ¥209.98, compared with prior guidance of operating revenues of ¥3,023,000m, operating income of ¥387,000m, profit attributable to owners of parent of ¥227,000m, and basic EPS of ¥200.66 (Corporate guidance).
8306
JP¥2,953.00
Mitsubishi UFJ Financial Group
7D
11.8%
1Y
54.2%
6762
JP¥2,013.50
TDK
7D
-6.0%
1Y
7.2%

6762: Raised Guidance And Battery Collaboration Will Support Future Upside Potential

Analysts have lifted their fair value estimate for TDK from ¥2,480 to ¥3,200, citing updated assumptions for revenue growth, profit margins and future P/E, even as the stock was recently removed from a conviction list. Analyst Commentary Even with the recent removal of TDK from a major APAC Conviction List, recent fair value work suggests that some research desks still see room for upside if the company delivers on updated revenue and margin assumptions.
4543
JP¥2,156.50
Terumo
7D
-4.9%
1Y
-26.3%

4543: Dividend Increases And U.S. Device Adoption Will Support Balanced Outlook

Analysts have kept their price target for Terumo steady at ¥2,500, citing only minor model tweaks in the discount rate, revenue growth, profit margin and future P/E assumptions, rather than a material change in their view of the shares. What's in the News Terumo announced a second quarter dividend for the period ending in 2026 of ¥15.00 per share, with payment scheduled for December 2, 2025.
9984
JP¥3,982.00
SoftBank Group
7D
-6.6%
1Y
71.8%

9984: Future OpenAI Exposure And Rising Arm Margin Debt Will Drive Upside Risk

Analysts have revised their price target on SoftBank Group to ¥3,029.36 from ¥9,400.00, reflecting updated assumptions around the discount rate, revenue growth, profit margins and future P/E expectations. What's in the News SoftBank plans to invest up to US$3b to remodel an EV plant in Lordstown, Ohio, to produce equipment for OpenAI's upcoming U.S. data centers, according to The Information.
7011
JP¥4,880.00
Mitsubishi Heavy Industries
7D
14.4%
1Y
133.6%

7011: Ethanol Alliance And Earnings Outlook Will Support Higher Future Returns

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6857
JP¥22,160.00
Advantest
7D
9.4%
1Y
136.5%

6857: Elevated AI Tester Expectations Will Likely Prove Unsustainable

Analysts have raised their price target for Advantest significantly, from approximately ¥6,973 to about ¥10,429. They cited upgraded expectations for revenue growth, structurally higher profit margins, and a slightly lower future price to earnings multiple that still supports a richer fair value.
8316
JP¥5,671.00
Sumitomo Mitsui Financial Group
7D
8.0%
1Y
48.0%

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Dec 25
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