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Japanese (NIKKEI) Market Analysis & Valuation

UpdatedDec 20, 2025
DataAggregated Company Financials
Companies3950
  • 7D-0.9%
  • 3M7.0%
  • 1Y24.7%
  • YTD22.3%

Over the last 7 days, the market has remained flat, with no particular sector making any big moves this week. Meanwhile, the market is actually up 25% over the past year. As for the next few years, earnings are expected to grow by 8.5% 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
Sat, 20 Dec 2025JP¥1148.2tJP¥1029.6tJP¥64.3t14.3x17.9x1.1x
Mon, 17 Nov 2025JP¥1143.8tJP¥1032.2tJP¥64.9t14.1x17.6x1.1x
Wed, 15 Oct 2025JP¥1070.9tJP¥1023.8tJP¥59.8t14.2x17.9x1x
Fri, 12 Sep 2025JP¥1083.9tJP¥1026.4tJP¥59.8t14.7x18.1x1.1x
Sun, 10 Aug 2025JP¥1038.7tJP¥1021.6tJP¥59.9t14.3x17.4x1x
Tue, 08 Jul 2025JP¥970.1tJP¥1027.1tJP¥62.7t13.3x15.5x0.9x
Thu, 05 Jun 2025JP¥968.7tJP¥1034.9tJP¥63.7t13.2x15.2x0.9x
Sat, 03 May 2025JP¥939.0tJP¥1023.9tJP¥64.7t12.9x14.5x0.9x
Mon, 31 Mar 2025JP¥957.7tJP¥1020.7tJP¥64.4t13.3x14.9x0.9x
Wed, 26 Feb 2025JP¥949.9tJP¥1020.2tJP¥64.4t13x14.8x0.9x
Fri, 24 Jan 2025JP¥957.1tJP¥1010.1tJP¥61.9t13.4x15.5x0.9x
Sun, 22 Dec 2024JP¥943.4tJP¥1010.8tJP¥61.7t13.4x15.3x0.9x
Tue, 19 Nov 2024JP¥938.6tJP¥1006.8tJP¥61.0t13.5x15.4x0.9x
Thu, 17 Oct 2024JP¥944.8tJP¥999.3tJP¥60.1t13.5x15.7x0.9x
Sat, 14 Sep 2024JP¥908.1tJP¥999.9tJP¥60.1t13.2x15.1x0.9x
Mon, 12 Aug 2024JP¥875.8tJP¥996.4tJP¥59.6t12.6x14.7x0.9x
Wed, 10 Jul 2024JP¥1004.3tJP¥986.1tJP¥58.3t14.4x17.2x1x
Fri, 07 Jun 2024JP¥969.4tJP¥989.5tJP¥58.6t14x16.5x1x
Sun, 05 May 2024JP¥965.4tJP¥974.4tJP¥56.5t14.4x17.1x1x
Tue, 02 Apr 2024JP¥971.0tJP¥975.9tJP¥56.9t14.7x17.1x1x
Thu, 29 Feb 2024JP¥956.7tJP¥975.7tJP¥56.9t14.5x16.8x1x
Sat, 27 Jan 2024JP¥898.1tJP¥971.4tJP¥52.5t14.7x17.1x0.9x
Mon, 25 Dec 2023JP¥844.7tJP¥971.2tJP¥52.5t13.9x16.1x0.9x
Wed, 22 Nov 2023JP¥857.5tJP¥977.0tJP¥52.9t14x16.2x0.9x
Fri, 20 Oct 2023JP¥824.1tJP¥971.7tJP¥55.3t13.8x14.9x0.8x
Sun, 17 Sep 2023JP¥881.9tJP¥971.3tJP¥55.2t14.4x16x0.9x
Tue, 15 Aug 2023JP¥831.6tJP¥970.5tJP¥55.1t13.9x15.1x0.9x
Thu, 13 Jul 2023JP¥812.5tJP¥957.2tJP¥50.6t13.8x16.1x0.8x
Sat, 10 Jun 2023JP¥812.7tJP¥959.1tJP¥51.1t13.6x15.9x0.8x
Mon, 08 May 2023JP¥762.5tJP¥941.9tJP¥47.9t13.4x15.9x0.8x
Wed, 05 Apr 2023JP¥743.6tJP¥934.0tJP¥46.6t13x16x0.8x
Fri, 03 Mar 2023JP¥734.0tJP¥933.6tJP¥46.7t12.8x15.7x0.8x
Sun, 29 Jan 2023JP¥730.7tJP¥904.2tJP¥49.1t12.5x14.9x0.8x
Tue, 27 Dec 2022JP¥703.0tJP¥903.1tJP¥49.1t12.1x14.3x0.8x
Price to Earnings Ratio

14.3x


Total Market Cap: JP¥703.0tTotal 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-0.91%
Consumer Staples1.79%
Utilities0.96%
Real Estate0.54%
Financials0.12%
Healthcare0.054%
Consumer Discretionary-0.093%
Energy-1.28%
Materials-1.33%
Industrials-1.66%
Telecom-2.13%
Tech-2.87%
Sector PE
  • Investors favour the Tech sector the most for future growth, which is trading above its 3-year average PE ratio of 24.0x.
    • Analysts are expecting annual earnings growth of 13.7%, which is lower than the prior year's growth of 15.3% per year.
  • 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 3.9% 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
7203 Toyota MotorJP¥3.42k5.0%
+JP¥2.1t		23.5%PE9.6xConsumer Discretionary
6098 Recruit HoldingsJP¥8.85k6.5%
+JP¥755.0b		-18.6%PE28.6xIndustrials
8267 AeonJP¥2.51k9.6%
+JP¥605.9b		104.5%PE253.8xConsumer Staples
8766 Tokio Marine HoldingsJP¥5.95k3.3%
+JP¥359.7b		7.9%PE10.8xFinancials
4502 Takeda PharmaceuticalJP¥4.60k3.5%
+JP¥246.4b		12.2%PE219.9xHealthcare
See more

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6954
JP¥5,707.00
Fanuc
7D
-9.6%
1Y
42.1%
6098
JP¥8,849.00
Recruit Holdings
7D
6.5%
1Y
-18.6%
4502
JP¥4,604.00
Takeda Pharmaceutical
7D
3.5%
1Y
12.2%
6758
JP¥3,994.00
Sony Group
7D
-4.5%
1Y
21.6%

6758: Gaming And Music Subscriptions Will Drive Future Earnings Re Rating

Analysts have modestly raised their price target on Sony Group, reflecting slightly faster expected revenue growth, a marginally higher profit margin, and a supportive backdrop of recent Buy and Outperform upgrades that highlight renewed strength in gaming and music streaming businesses. Analyst Commentary Recent Street revisions highlight a more constructive stance on Sony Group, with analysts pointing to a combination of cyclical recovery in key content categories and structural tailwinds in digital entertainment.
8058
JP¥3,617.00
Mitsubishi
7D
-3.9%
1Y
44.9%

Mitsubishi (TSE:8058) Has Announced A Dividend Of ¥55.00

Dec 16
Mitsubishi (TSE:8058) Has Announced A Dividend Of ¥55.00
8267
JP¥2,508.00
Aeon
7D
9.6%
1Y
104.5%
6702
JP¥4,307.00
Fujitsu
7D
2.2%
1Y
53.3%
8750
JP¥1,310.00
Dai-ichi Life Holdings
7D
2.8%
1Y
26.2%

8750: Overseas Expansion And Capital Returns Will Support Measured Future Upside

Analysts have nudged their price target on Dai-ichi Life Holdings higher, lifting estimated fair value from ¥1,361 to ¥1,394. They are factoring in slightly faster revenue growth, a modest improvement in profit margins, and a lower discount rate, while keeping future valuation multiples broadly intact.
8306
JP¥2,449.50
Mitsubishi UFJ Financial Group
7D
-2.0%
1Y
38.2%
6857
JP¥19,195.00
Advantest
7D
-7.6%
1Y
123.0%

6857: New Test Platforms Will Support Future Returns At A Fair Price

Analysts have modestly raised their price target on Advantest to approximately ¥19,218, citing a slightly higher assumed discount rate while maintaining largely unchanged expectations for long term revenue growth, profit margins, and future valuation multiples. What's in the News Launched the T2000 AiR2X next generation air cooled SoC test system, doubling test resources versus the prior AiR platform while remaining compatible with existing T2000 installations and targeting high mix, low volume and legacy system replacement demand (company announcement).
8766
JP¥5,954.00
Tokio Marine Holdings
7D
3.3%
1Y
7.9%

Tokio Marine Holdings (TSE:8766) Has Announced A Dividend Of ¥105.50

Dec 14
Tokio Marine Holdings (TSE:8766) Has Announced A Dividend Of ¥105.50
9984
JP¥17,115.00
SoftBank Group
7D
-4.4%
1Y
95.4%

9984: Expanding AI Infrastructure Investments Will Drive Shares Higher

Narrative Update on SoftBank Group Analysts have raised their price target for SoftBank Group from ¥20,000 to approximately ¥28,062. This reflects updated expectations for slightly stronger revenue growth, a higher long term valuation multiple, and a modestly higher discount rate despite lower projected profit margins.
7203
JP¥3,424.00
Toyota Motor
7D
5.0%
1Y
23.5%

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.
7011
JP¥3,882.00
Mitsubishi Heavy Industries
7D
-6.6%
1Y
73.6%

7011: Updated Guidance And Margins Will Support Balanced Returns Ahead

Analysts have inched up their price target for Mitsubishi Heavy Industries by approximately ¥23.00 per share, as slightly stronger long term margin expectations and modestly higher valuation multiples are seen as more than offsetting a small downgrade to revenue growth assumptions and a marginally higher discount rate. What's in the News Mitsubishi Heavy Industries revised its consolidated earnings guidance for the fiscal year ending March 31, 2026, now expecting revenue of JPY 4,800,000 million and profit attributable to owners of the parent of JPY 230,000 million, reflecting stronger than expected performance in the first half of fiscal 2025 (company guidance).
7974
JP¥10,650.00
Nintendo
7D
-9.2%
1Y
16.6%
8316
JP¥5,020.00
Sumitomo Mitsui Financial Group
7D
0.9%
1Y
37.5%