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Japanese (NIKKEI) IT Industry Analysis

UpdatedAug 20, 2025
DataAggregated Company Financials
Companies217
  • 7D0.2%
  • 3M9.7%
  • 1Y43.3%
  • YTD31.1%

In the last week, IT has been flat. The past year has been better, since the industry has gained 41% in that time. Earnings are forecast to grow by 10% annually.

Industry Valuation and Performance

Has the Japanese IT Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 20 Aug 2025JP¥35.3tJP¥19.9tJP¥1.2t17.3x29.8x1.8x
Fri, 18 Jul 2025JP¥27.6tJP¥15.0tJP¥980.9b17.2x28.1x1.8x
Sun, 15 Jun 2025JP¥33.6tJP¥19.6tJP¥1.1t17.7x30x1.7x
Tue, 13 May 2025JP¥32.6tJP¥19.5tJP¥1.1t17.7x29.2x1.7x
Thu, 10 Apr 2025JP¥25.2tJP¥19.5tJP¥1.2t14.4x20.5x1.3x
Sat, 08 Mar 2025JP¥29.1tJP¥20.0tJP¥1.3t17.2x23x1.5x
Mon, 03 Feb 2025JP¥29.6tJP¥19.9tJP¥1.2t17.7x24x1.5x
Wed, 01 Jan 2025JP¥28.4tJP¥19.8tJP¥1.1t17.6x25.3x1.4x
Fri, 29 Nov 2024JP¥27.8tJP¥19.8tJP¥1.1t17.8x24.8x1.4x
Sun, 27 Oct 2024JP¥26.6tJP¥19.7tJP¥1.1t16.6x23.7x1.4x
Tue, 24 Sep 2024JP¥27.5tJP¥19.7tJP¥1.1t17.9x24.5x1.4x
Thu, 22 Aug 2024JP¥25.5tJP¥19.8tJP¥1.1t17.3x22.6x1.3x
Sat, 20 Jul 2024JP¥26.2tJP¥19.5tJP¥1.1t18.8x23.3x1.3x
Mon, 17 Jun 2024JP¥24.4tJP¥19.5tJP¥1.1t17.2x21.7x1.3x
Wed, 15 May 2024JP¥24.0tJP¥19.5tJP¥1.1t18.6x21.3x1.2x
Fri, 12 Apr 2024JP¥24.8tJP¥19.2tJP¥964.3b18.8x25.7x1.3x
Sun, 10 Mar 2024JP¥25.3tJP¥19.2tJP¥965.0b19.6x26.2x1.3x
Tue, 06 Feb 2024JP¥24.1tJP¥19.1tJP¥952.5b18.9x25.3x1.3x
Thu, 04 Jan 2024JP¥24.2tJP¥19.6tJP¥1.0t18.2x23.3x1.2x
Sat, 02 Dec 2023JP¥23.6tJP¥19.6tJP¥1.0t18x22.8x1.2x
Mon, 30 Oct 2023JP¥22.1tJP¥18.9tJP¥1.0t17.6x21.9x1.2x
Wed, 27 Sep 2023JP¥23.3tJP¥18.8tJP¥1.0t18.8x22.9x1.2x
Fri, 25 Aug 2023JP¥23.0tJP¥18.8tJP¥1.0t19.1x22.6x1.2x
Sun, 23 Jul 2023JP¥22.5tJP¥18.3tJP¥1.0t19x21.9x1.2x
Tue, 20 Jun 2023JP¥23.5tJP¥18.2tJP¥1.0t19.5x23x1.3x
Thu, 18 May 2023JP¥22.0tJP¥18.2tJP¥1.0t17.6x21.4x1.2x
Sat, 15 Apr 2023JP¥20.7tJP¥17.5tJP¥979.3b18.3x21.1x1.2x
Mon, 13 Mar 2023JP¥21.8tJP¥18.3tJP¥1.1t18.1x20.7x1.2x
Wed, 08 Feb 2023JP¥21.9tJP¥17.9tJP¥1.1t17.6x20.4x1.2x
Fri, 06 Jan 2023JP¥21.2tJP¥17.7tJP¥1.1t16.6x19.3x1.2x
Sun, 04 Dec 2022JP¥22.7tJP¥17.6tJP¥1.1t18.1x20.6x1.3x
Tue, 01 Nov 2022JP¥22.7tJP¥17.5tJP¥1.1t18.2x20x1.3x
Thu, 29 Sep 2022JP¥21.1tJP¥17.3tJP¥1.1t16.8x19.1x1.2x
Sat, 27 Aug 2022JP¥22.7tJP¥17.4tJP¥1.1t18.2x20.5x1.3x
Price to Earnings Ratio

20.5x


Total Market Cap: JP¥22.7tTotal Earnings: JP¥1.1tTotal Revenue: JP¥17.4tTotal Market Cap vs Earnings and Revenue0%0%0%
Japanese IT Industry Price to Earnings3Y Average 23.1x202320242025
Current Industry PE
  • Investors are optimistic on the Japanese IT industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 28.6x which is higher than its 3-year average PE of 23.1x.
  • The 3-year average PS ratio of 1.3x is lower than the industry's current PS ratio of 2.0x.
Past Earnings Growth
  • The earnings for companies in the IT industry have declined 2.1% per year over the last three years,
  • Revenues have also declined 4.3% per year.
  • This means overall sales from these companies are declining and profits are subsequently falling as well.

Industry Trends

Which industries have driven the changes within the Japanese Tech industry?

JP Market1.61%
Tech0.40%
IT0.18%
IT Consulting0.22%
Internet Services and Infrastructure-1.01%
Data Processing Services-1.80%
Industry PE
  • Investors are most optimistic about the IT Consulting industry which is trading above its 3-year average PE ratio of 22.8x.
    • Analysts are expecting annual earnings growth of 10.0%, which is lower than the prior year's growth of 17.1% per year.
  • Investors are most pessimistic about the Data Processing Services industry, which is trading close to its 3-year average of 18.4x.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 18% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the IT Consulting industry is expected to see its earnings grow by 10% per year over the next few years.

Top Stock Gainers and Losers

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

CompanyLast Price7D1YValuation
4307 Nomura Research InstituteJP¥6.16k1.3%
+JP¥44.1b		28.8%PE36.2x
6701 NECJP¥4.64k0.5%
+JP¥28.0b		81.8%PE30.9x
4684 OBICLtdJP¥5.47k0.6%
+JP¥14.1b		8.9%PE35.7x
3697 SHIFTJP¥1.65k2.0%
+JP¥8.6b		108.1%PE53.5x
4419 Finatext HoldingsJP¥1.42k12.1%
+JP¥7.8b		54.3%PE80.2x

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