Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

Japanese (NIKKEI) Market Analysis & Valuation

UpdatedJan 08, 2026
DataAggregated Company Financials
Companies3946
  • 7D2.8%
  • 3M7.5%
  • 1Y26.1%
  • YTD0.9%

Over the last 7 days, the market has risen 3.4%, driven by gains in every sector, especially the Industrials sector. In the last year, the market has climbed 26%. Looking forward, earnings are forecast to grow by 8.5% annually.

Trending IndustriesOil and GasBiotechSoftwareRenewable Energy

Market Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 08 Jan 2026JP¥1188.6tJP¥1029.1tJP¥64.3t14.7x18.5x1.2x
Sat, 06 Dec 2025JP¥1138.8tJP¥1030.1tJP¥64.2t14x17.7x1.1x
Mon, 03 Nov 2025JP¥1137.3tJP¥1028.5tJP¥61.3t14.4x18.6x1.1x
Wed, 01 Oct 2025JP¥1078.4tJP¥1028.4tJP¥59.8t14.6x18x1x
Fri, 29 Aug 2025JP¥1065.6tJP¥1026.5tJP¥59.8t14.5x17.8x1x
Sun, 27 Jul 2025JP¥1014.8tJP¥1020.9tJP¥61.6t13.8x16.5x1x
Tue, 24 Jun 2025JP¥956.0tJP¥1029.2tJP¥63.5t13.2x15x0.9x
Thu, 22 May 2025JP¥952.2tJP¥1031.7tJP¥63.8t12.8x14.9x0.9x
Sat, 19 Apr 2025JP¥898.1tJP¥1021.5tJP¥64.3t12.6x14x0.9x
Mon, 17 Mar 2025JP¥945.4tJP¥1020.1tJP¥64.4t13.2x14.7x0.9x
Wed, 12 Feb 2025JP¥953.8tJP¥1017.1tJP¥65.0t13.3x14.7x0.9x
Fri, 10 Jan 2025JP¥954.0tJP¥1011.3tJP¥62.0t13.5x15.4x0.9x
Sun, 08 Dec 2024JP¥950.3tJP¥1009.5tJP¥61.7t13.4x15.4x0.9x
Tue, 05 Nov 2024JP¥925.9tJP¥1001.9tJP¥59.3t13.2x15.6x0.9x
Thu, 03 Oct 2024JP¥947.1tJP¥1000.0tJP¥60.1t13.5x15.8x0.9x
Sat, 31 Aug 2024JP¥956.4tJP¥999.6tJP¥60.0t13.6x15.9x1x
Mon, 29 Jul 2024JP¥949.9tJP¥987.2tJP¥58.6t14.1x16.2x1x
Wed, 26 Jun 2024JP¥982.3tJP¥989.0tJP¥58.6t14.5x16.8x1x
Fri, 24 May 2024JP¥970.3tJP¥988.0tJP¥58.6t14x16.6x1x
Sun, 21 Apr 2024JP¥932.2tJP¥975.0tJP¥57.0t14.2x16.4x1x
Tue, 19 Mar 2024JP¥970.8tJP¥975.9tJP¥56.9t14.6x17.1x1x
Thu, 15 Feb 2024JP¥925.4tJP¥974.5tJP¥56.6t14.3x16.4x0.9x
Sat, 13 Jan 2024JP¥897.7tJP¥971.2tJP¥52.4t14.4x17.1x0.9x
Mon, 11 Dec 2023JP¥842.6tJP¥974.3tJP¥52.5t13.9x16x0.9x
Wed, 08 Nov 2023JP¥847.1tJP¥973.3tJP¥56.5t13.9x15x0.9x
Fri, 06 Oct 2023JP¥842.3tJP¥971.2tJP¥55.2t13.8x15.3x0.9x
Sun, 03 Sep 2023JP¥855.7tJP¥971.1tJP¥55.2t14.3x15.5x0.9x
Tue, 01 Aug 2023JP¥847.8tJP¥961.3tJP¥51.5t14.2x16.5x0.9x
Thu, 29 Jun 2023JP¥823.3tJP¥957.3tJP¥51.1t14x16.1x0.9x
Sat, 27 May 2023JP¥784.9tJP¥958.8tJP¥51.1t13.4x15.4x0.8x
Mon, 24 Apr 2023JP¥748.2tJP¥935.1tJP¥46.6t13x16x0.8x
Wed, 22 Mar 2023JP¥692.0tJP¥922.5tJP¥46.1t12.4x15x0.8x
Fri, 17 Feb 2023JP¥737.0tJP¥924.6tJP¥46.5t12.7x15.8x0.8x
Sun, 15 Jan 2023JP¥701.9tJP¥902.0tJP¥49.1t12.2x14.3x0.8x
Price to Earnings Ratio

14.3x


Total Market Cap: JP¥701.9tTotal Earnings: JP¥49.1tTotal Revenue: JP¥902.0tTotal 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 18.6x which is higher than its 3-year average PE of 16.1x.
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 Market2.80%
Financials4.50%
Tech4.40%
Materials4.32%
Industrials3.91%
Healthcare2.84%
Real Estate1.87%
Energy1.51%
Telecom1.45%
Consumer Discretionary0.45%
Consumer Staples-0.33%
Utilities-0.81%
Sector PE
  • Investors favour the Tech sector the most for future growth, which is trading above its 3-year average PE ratio of 24.2x.
    • Analysts expect its future annual earnings growth (14.1%) 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 5.1% 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
8035 Tokyo ElectronJP¥38.17k11.2%
+JP¥1.8t		38.6%PE32.3xTech
6501 HitachiJP¥5.26k7.4%
+JP¥1.6t		32.7%PE29.9xIndustrials
9984 SoftBank GroupJP¥4.65k5.8%
+JP¥1.4t		98.6%PE8.7xTelecom
8306 Mitsubishi UFJ Financial GroupJP¥2.62k5.1%
+JP¥1.3t		36.5%PB1.4xFinancials
285A Kioxia HoldingsJP¥12.69k21.6%
+JP¥1.2t		519.0%PE44.2xTech
See more

Market Insights

Header cover image
Which Markets Will Sink or Swim in 2026? 🌍
Richard Bowman avatar
Richard Bowman
|
|
What research teams agree on – and where they don’t – heading into 2026.
Continue reading
Three Sectors Expected to Rally in 2026 📈
Last Week

Three Sectors Expected to Rally in 2026 📈

Latest News

8035
JP¥38,170.00
Tokyo Electron
7D
11.2%
1Y
38.6%

At JP¥38,170, Is Tokyo Electron Limited (TSE:8035) Worth Looking At Closely?

Jan 08
At JP¥38,170, Is Tokyo Electron Limited (TSE:8035) Worth Looking At Closely?
9502
JP¥2,220.50
Chubu Electric Power Company
7D
-7.9%
1Y
35.2%

Here's Why Chubu Electric Power Company (TSE:9502) Has A Meaningful Debt Burden

Jan 07
Here's Why Chubu Electric Power Company (TSE:9502) Has A Meaningful Debt Burden
8267
JP¥2,402.50
Aeon
7D
-3.0%
1Y
102.6%
6146
JP¥55,670.00
Disco
7D
15.6%
1Y
14.5%
8306
JP¥2,619.00
Mitsubishi UFJ Financial Group
7D
5.1%
1Y
36.5%

8306: Buybacks, Higher Dividends And Leadership Changes Will Support Steady Outlook

Analysts have nudged their price target for Mitsubishi UFJ Financial Group higher to ¥2,491.82 from ¥2,470, citing updated assumptions around fair value, discount rate, revenue growth, profit margins, and future P/E that slightly adjust their overall outlook on the stock. What's in the News Mitsubishi UFJ Financial Group completed a share repurchase tranche, buying 47,059,100 shares, or 0.41% of shares, for ¥115,292.29 million under the buyback announced on November 14, 2025.
7203
JP¥3,335.00
Toyota Motor
7D
-0.6%
1Y
8.5%
9984
JP¥4,653.00
SoftBank Group
7D
5.8%
1Y
98.6%

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.
6758
JP¥3,976.00
Sony Group
7D
-1.2%
1Y
20.9%

6758: Entertainment Subscriptions And Franchises Will Drive Future Earnings Re Rating

Our analyst price target for Sony Group has edged up from ¥5,146.80 to ¥5,191.60 as analysts factor in higher operating profit forecasts tied to renewed growth expectations for PS Plus, sustained music streaming momentum, and the perceived strength of Sony's combined games, anime, and music franchises. Analyst Commentary Bullish analysts are nudging price targets higher for Sony Group, pointing to what they see as improving fundamentals in games, music, and subscription services, along with stronger than expected recent results.
1605
JP¥3,020.00
Inpex
7D
-3.4%
1Y
51.5%

1605: Expanded Buybacks And Firm Margins Will Support Stronger Shareholder Returns

Analysts have kept their fair value estimate for Inpex broadly steady at ¥4,186.61 per share, reflecting updated assumptions for lower revenue growth expectations, a slightly higher profit margin and a modestly higher future P/E of 13.73, which together inform the latest price target view. What's in the News Board meeting scheduled for November 13, 2025 to consider changes to Inpex's shareholder benefit system and other agenda items (company event filing).
7011
JP¥4,163.00
Mitsubishi Heavy Industries
7D
8.4%
1Y
86.6%

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

Analysts now set their fair value estimate for Mitsubishi Heavy Industries at ¥5,300, up from ¥3,848.99, citing revised assumptions for revenue growth, profit margins, future P/E levels and an updated discount rate. What's in the News Mitsubishi Heavy Industries issued revised consolidated earnings guidance for the fiscal year ending March 31, 2026, with expected revenue of ¥4,800,000 million, profit from business activities of ¥390,000 million, profit attributable to owners of the parent of ¥230,000 million, and basic earnings per share of ¥68.49 (company guidance).
6367
JP¥19,620.00
Daikin IndustriesLtd
7D
-2.3%
1Y
4.5%

Here's What To Make Of Daikin IndustriesLtd's (TSE:6367) Decelerating Rates Of Return

Jan 04
Here's What To Make Of Daikin IndustriesLtd's (TSE:6367) Decelerating Rates Of Return
6861
JP¥56,120.00
Keyence
7D
-1.0%
1Y
-13.2%

Keyence Corporation's (TSE:6861) Popularity With Investors Is Under Threat From Overpricing

Jan 03
Keyence Corporation's (TSE:6861) Popularity With Investors Is Under Threat From Overpricing
285A
JP¥12,690.00
Kioxia Holdings
7D
21.6%
1Y
519.0%
7974
JP¥10,350.00
Nintendo
7D
-2.3%
1Y
16.3%
6501
JP¥5,263.00
Hitachi
7D
7.4%
1Y
32.7%

6501: Government Energy Infrastructure And AI Projects Will Drive Future Upside Potential

Analysts have modestly raised their price target on Hitachi to approximately $5,515 from about $5,508, citing slightly faster expected revenue growth, a marginally lower discount rate, and a steady long term profit outlook that supports a similar future price to earnings multiple. What's in the News Hitachi Vantara deployed its Virtual Storage Platform One for Asia Airfreight Terminal at Hong Kong International Airport, delivering zero downtime, tripling storage capacity, and cutting energy use by over 50% in 24/7 cold chain cargo operations (Key Developments).
8411
JP¥6,137.00
Mizuho Financial Group
7D
7.7%
1Y
53.1%

8411: Buyback And Higher Dividend Will Support Cautious Longer-Term Returns

Analysts have modestly raised their price target on Mizuho Financial Group to approximately ¥5,435 from about ¥5,335, citing slightly lower discount rates, a marginally improved profit margin outlook, and a higher expected future price to earnings multiple. What's in the News Mizuho Financial Group announced a new share repurchase program of up to 60,000,000 shares, or about 2.41% of its issued share capital, for ¥200,000 million, with all repurchased shares to be cancelled and the program running until February 28, 2026 (Key Developments).