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Japanese (NIKKEI) Market Analysis & Valuation

UpdatedDec 12, 2025
DataAggregated Company Financials
Companies3947
  • 7D-1.1%
  • 3M5.6%
  • 1Y20.2%
  • YTD21.2%

The market has climbed 1.6% in the last 7 days, lead by the Industrials sector with a gain of 3.1%. In the last year, the market has climbed 22%. Looking forward, earnings are forecast to grow by 8.3% annually.

Trending IndustriesOil and GasBiotechSoftwareRenewable Energy

Market Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 12 Dec 2025JP¥1136.9tJP¥1029.8tJP¥64.2t14x17.7x1.1x
Sun, 09 Nov 2025JP¥1125.8tJP¥1030.8tJP¥62.4t14.1x18x1.1x
Tue, 07 Oct 2025JP¥1100.8tJP¥1023.6tJP¥59.7t14.7x18.4x1.1x
Thu, 04 Sep 2025JP¥1050.8tJP¥1026.1tJP¥59.8t14.5x17.6x1x
Sat, 02 Aug 2025JP¥1016.2tJP¥1021.7tJP¥61.1t14.1x16.6x1x
Mon, 30 Jun 2025JP¥980.6tJP¥1029.4tJP¥63.6t13.3x15.4x1x
Wed, 28 May 2025JP¥963.6tJP¥1033.5tJP¥63.7t12.9x15.1x0.9x
Fri, 25 Apr 2025JP¥907.1tJP¥1021.1tJP¥64.2t12.7x14.1x0.9x
Sun, 23 Mar 2025JP¥972.6tJP¥1019.4tJP¥64.3t13.4x15.1x1x
Tue, 18 Feb 2025JP¥964.1tJP¥1021.3tJP¥64.7t13.2x14.9x0.9x
Thu, 16 Jan 2025JP¥937.8tJP¥1010.3tJP¥61.9t13.3x15.1x0.9x
Sat, 14 Dec 2024JP¥956.7tJP¥1009.5tJP¥61.8t13.5x15.5x0.9x
Mon, 11 Nov 2024JP¥956.3tJP¥1004.7tJP¥58.5t13.5x16.3x1x
Wed, 09 Oct 2024JP¥948.4tJP¥1000.1tJP¥60.1t13.6x15.8x0.9x
Fri, 06 Sep 2024JP¥924.5tJP¥999.6tJP¥60.1t13.4x15.4x0.9x
Sun, 04 Aug 2024JP¥895.8tJP¥992.3tJP¥58.8t13.1x15.2x0.9x
Tue, 02 Jul 2024JP¥989.2tJP¥985.9tJP¥58.3t14.5x17x1x
Thu, 30 May 2024JP¥964.1tJP¥988.0tJP¥58.6t13.9x16.5x1x
Sat, 27 Apr 2024JP¥952.9tJP¥974.9tJP¥57.2t14.4x16.7x1x
Mon, 25 Mar 2024JP¥1002.4tJP¥976.4tJP¥56.9t14.9x17.6x1x
Wed, 21 Feb 2024JP¥943.7tJP¥976.9tJP¥56.9t14.4x16.6x1x
Fri, 19 Jan 2024JP¥895.5tJP¥971.4tJP¥52.5t14.4x17.1x0.9x
Sun, 17 Dec 2023JP¥845.5tJP¥974.4tJP¥52.5t13.9x16.1x0.9x
Tue, 14 Nov 2023JP¥849.0tJP¥976.8tJP¥52.6t13.9x16.1x0.9x
Thu, 12 Oct 2023JP¥839.4tJP¥971.3tJP¥55.2t14x15.2x0.9x
Sat, 09 Sep 2023JP¥858.7tJP¥971.2tJP¥55.2t14.4x15.5x0.9x
Mon, 07 Aug 2023JP¥829.3tJP¥964.1tJP¥52.6t13.9x15.8x0.9x
Wed, 05 Jul 2023JP¥841.7tJP¥957.1tJP¥50.6t14.1x16.6x0.9x
Fri, 02 Jun 2023JP¥785.6tJP¥958.8tJP¥51.1t13.3x15.4x0.8x
Sun, 30 Apr 2023JP¥756.7tJP¥941.1tJP¥47.8t13.3x15.8x0.8x
Tue, 28 Mar 2023JP¥722.6tJP¥933.8tJP¥46.6t12.8x15.5x0.8x
Thu, 23 Feb 2023JP¥728.5tJP¥934.4tJP¥46.7t12.7x15.6x0.8x
Sat, 21 Jan 2023JP¥710.3tJP¥903.2tJP¥49.0t12.3x14.5x0.8x
Mon, 19 Dec 2022JP¥723.1tJP¥903.1tJP¥49.1t12.4x14.7x0.8x
Price to Earnings Ratio

14.7x


Total Market Cap: JP¥723.1tTotal Earnings: JP¥49.1tTotal Revenue: JP¥903.1tTotal Market Cap vs Earnings and Revenue0%0%0%
Japanese Market Price to Earnings3Y Average 16x202320242025
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 17.9x which is higher than its 3-year average PE of 16.0x.
Past Earnings Growth
  • The earnings for Japanese listed companies have grown 9.4% per year over the last three years.
  • Revenues for these companies have grown 4.5% 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-1.14%
Industrials0.083%
Real Estate-0.13%
Energy-0.72%
Utilities-0.84%
Materials-0.93%
Tech-0.98%
Financials-1.11%
Healthcare-1.38%
Consumer Discretionary-1.50%
Consumer Staples-2.28%
Telecom-3.77%
Sector PE
  • Investors favour the Tech sector the most for future growth, which is trading above its 3-year average PE ratio of 23.9x.
    • Analysts expect its future annual earnings growth (13.7%) 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 6.9% per year.
  • In contrast, the Telecom sector is expected to see its earnings decline by 4.5% 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¥4.54k6.1%
+JP¥753.2b		38.3%PE14.3xIndustrials
6146 DiscoJP¥49.33k8.5%
+JP¥419.6b		20.3%PE42.3xTech
6752 Panasonic HoldingsJP¥2.03k8.5%
+JP¥372.4b		29.0%PE14.9xConsumer Discretionary
5803 FujikuraJP¥18.22k7.5%
+JP¥350.4b		197.2%PE38.8xIndustrials
7182 JAPAN POST BANKJP¥2.06k4.8%
+JP¥339.6b		34.8%PB0.8xFinancials
See more

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8031
JP¥4,600.00
Mitsui
7D
9.2%
1Y
42.0%
7203
JP¥3,259.00
Toyota Motor
7D
7.5%
1Y
20.8%

7203: North Carolina Battery Plant And Litigation Will Shape Balanced Outlook

Analysts have modestly raised their price target on Toyota Motor, citing slightly stronger long term assumptions for fair value, revenue growth, profit margins and future valuation multiples that together support an incremental uptick of approximately ¥90 per share in estimated equity value. What's in the News Toyota began production at its new Liberty, North Carolina battery plant, a nearly JPY 14 billion investment that will create up to 5,100 jobs and serve as a key global hub for lithium ion battery output supporting HEVs, BEVs, and PHEVs. The company issued consolidated earnings guidance for fiscal 2026, targeting sales revenues of JPY 49,000,000 million, operating income of JPY 3,400,000 million, and net income of JPY 2,930,000 million, equal to basic EPS of JPY 224.81.
6503
JP¥4,817.00
Mitsubishi Electric
7D
7.8%
1Y
82.9%
8267
JP¥2,297.00
Aeon
7D
-8.9%
1Y
79.0%

8267: Elevated Future P E Multiple Will Likely Pressure Share Returns

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9984
JP¥17,845.00
SoftBank Group
7D
-7.5%
1Y
91.3%
8306
JP¥2,499.50
Mitsubishi UFJ Financial Group
7D
-1.2%
1Y
35.1%

8306: Buybacks And Dividend Increases Will Shape Moderate Forward Performance

Analysts have modestly raised their price target on Mitsubishi UFJ Financial Group to approximately ¥2,470, citing a lower perceived cost of equity, slightly more conservative revenue growth assumptions, a marginally higher expected profit margin, and a reduced forward P/E multiple. What's in the News Board meeting scheduled for November 14, 2025, with an agenda focused on discussing a potential common stock repurchase (company event filing) Board authorizes a new share buyback plan, including the repurchase of 130,000,000 shares, or 1.14% of outstanding shares, for ¥250,000 million, with all repurchased shares to be cancelled and the program running until February 27, 2026 (company announcement) Earnings guidance for the year ending March 31, 2026 raised, with profits attributable to owners of parent now targeted at ¥2,100 billion, up from ¥2,000 billion, driven by stronger customer business performance and higher equity-method earnings from Morgan Stanley (guidance revision) Year end dividend guidance for fiscal 2026 increased from ¥35.00 to ¥39.00 per share, lifting the forecast annual dividend to ¥74.00 per share, reflecting a policy of stable, sustainable dividend growth and a target payout ratio of about 40% (dividend guidance update) Dividend for the second quarter ended September 30, 2025 set at ¥35.00 per share, up from ¥25.00 a year earlier, with payment on December 5, 2025 (dividend announcement) Valuation Changes Fair Value Estimate increased slightly from approximately ¥2,469.09 to ¥2,470.00 per share, reflecting a marginal upward revision in intrinsic valuation.
7974
JP¥11,725.00
Nintendo
7D
-6.2%
1Y
28.5%
2802
JP¥3,372.00
Ajinomoto
7D
-5.7%
1Y
3.9%
6758
JP¥4,188.00
Sony Group
7D
-3.3%
1Y
24.7%

6758: Games And Subscription Content Will Drive Future Earnings Re-Rating

Analysts have nudged their price target on Sony Group modestly higher, reflecting a roughly 1 percent increase in fair value to about ¥5,150. They point to upgraded ratings, better than expected quarterly results, and growing confidence in the company’s games, music, and subscription businesses.
8001
JP¥9,783.00
ITOCHU
7D
6.4%
1Y
26.4%
8053
JP¥5,406.00
Sumitomo
7D
10.3%
1Y
62.0%

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8002
JP¥4,582.00
Marubeni
7D
8.0%
1Y
100.3%
6701
JP¥5,552.00
NEC
7D
-3.0%
1Y
112.6%

6701: Earnings and Merger Activity Will Guide Future Market Performance

Analysts have raised their fair value estimate for NEC from ¥5,445 to ¥5,860, citing modest improvements in profit margin expectations and future earnings multiples, even though revenue growth projections are slightly lower. What's in the News Broadcom announced plans to expand its strategic partnership with NEC Corporation, adopting VMware Cloud Foundation to modernize private cloud solutions and offer flexible hybrid cloud resources to customers (Client Announcements).
8035
JP¥31,700.00
Tokyo Electron
7D
-4.3%
1Y
32.9%

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Nov 29
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6752
JP¥2,182.50
Panasonic Holdings
7D
17.9%
1Y
38.6%

6752: Chip Tariff Risk And Battery Collaboration Prospects Will Shape Outlook

Analysts have modestly raised their price target for Panasonic Holdings from ¥2,126.67 to ¥2,136.00. This reflects slight improvements in profit margin and a lower discount rate.
7182
JP¥2,120.00
JAPAN POST BANK
7D
8.2%
1Y
39.0%

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