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

Japanese (NIKKEI) Market Analysis & Valuation

UpdatedJan 21, 2026
DataAggregated Company Financials
Companies3938
  • 7D0.7%
  • 3M10.4%
  • 1Y32.7%
  • YTD4.1%

In the last week, the market has stayed flat, however the Consumer Staples sector stood out, gaining 4.5%. More promisingly, the market is up 33% over the past year. Looking forward, earnings are forecast to grow by 8.9% annually.

Trending IndustriesOil and GasBiotechSoftwareRenewable Energy

Market Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 21 Jan 2026JP¥1224.7tJP¥1027.4tJP¥64.4t15x19x1.2x
Fri, 19 Dec 2025JP¥1138.8tJP¥1029.6tJP¥64.3t14.2x17.7x1.1x
Sun, 16 Nov 2025JP¥1144.6tJP¥1032.2tJP¥64.7t14.1x17.7x1.1x
Tue, 14 Oct 2025JP¥1092.0tJP¥1023.8tJP¥59.8t14.4x18.3x1.1x
Thu, 11 Sep 2025JP¥1081.1tJP¥1026.4tJP¥59.8t14.7x18.1x1.1x
Sat, 09 Aug 2025JP¥1039.0tJP¥1022.1tJP¥60.2t14.3x17.3x1x
Mon, 07 Jul 2025JP¥974.5tJP¥1027.1tJP¥62.7t13.3x15.5x0.9x
Wed, 04 Jun 2025JP¥964.6tJP¥1034.8tJP¥63.7t13.1x15.1x0.9x
Fri, 02 May 2025JP¥935.6tJP¥1023.3tJP¥64.6t12.9x14.5x0.9x
Sun, 30 Mar 2025JP¥958.0tJP¥1020.9tJP¥64.4t13.3x14.9x0.9x
Tue, 25 Feb 2025JP¥953.7tJP¥1020.2tJP¥64.4t13.1x14.8x0.9x
Thu, 23 Jan 2025JP¥952.7tJP¥1010.1tJP¥61.9t13.5x15.4x0.9x
Sat, 21 Dec 2024JP¥943.4tJP¥1010.8tJP¥61.8t13.4x15.3x0.9x
Mon, 18 Nov 2024JP¥945.6tJP¥1006.8tJP¥61.0t13.4x15.5x0.9x
Wed, 16 Oct 2024JP¥956.0tJP¥999.2tJP¥60.1t13.6x15.9x1x
Fri, 13 Sep 2024JP¥915.5tJP¥1000.0tJP¥60.1t13.2x15.2x0.9x
Sun, 11 Aug 2024JP¥875.8tJP¥995.8tJP¥59.4t12.7x14.7x0.9x
Tue, 09 Jul 2024JP¥1003.4tJP¥986.1tJP¥58.3t14.4x17.2x1x
Thu, 06 Jun 2024JP¥966.9tJP¥989.6tJP¥58.6t14.1x16.5x1x
Sat, 04 May 2024JP¥965.4tJP¥974.7tJP¥56.4t14.4x17.1x1x
Mon, 01 Apr 2024JP¥987.0tJP¥975.9tJP¥56.9t14.9x17.4x1x
Wed, 28 Feb 2024JP¥957.7tJP¥975.7tJP¥56.9t14.4x16.8x1x
Fri, 26 Jan 2024JP¥909.5tJP¥971.4tJP¥52.5t14.8x17.3x0.9x
Sun, 24 Dec 2023JP¥844.7tJP¥971.2tJP¥52.5t13.9x16.1x0.9x
Tue, 21 Nov 2023JP¥859.0tJP¥977.0tJP¥52.9t13.9x16.2x0.9x
Thu, 19 Oct 2023JP¥833.6tJP¥971.7tJP¥55.2t13.9x15.1x0.9x
Sat, 16 Sep 2023JP¥873.9tJP¥971.2tJP¥55.2t14.4x15.8x0.9x
Mon, 14 Aug 2023JP¥839.5tJP¥970.5tJP¥55.1t14x15.2x0.9x
Wed, 12 Jul 2023JP¥817.5tJP¥957.2tJP¥50.6t13.9x16.2x0.9x
Fri, 09 Jun 2023JP¥800.9tJP¥959.1tJP¥51.1t13.5x15.7x0.8x
Sun, 07 May 2023JP¥762.5tJP¥941.9tJP¥47.9t13.4x15.9x0.8x
Tue, 04 Apr 2023JP¥742.1tJP¥933.9tJP¥46.6t13x15.9x0.8x
Thu, 02 Mar 2023JP¥735.2tJP¥933.6tJP¥46.7t12.8x15.7x0.8x
Sat, 28 Jan 2023JP¥730.6tJP¥903.9tJP¥49.1t12.5x14.9x0.8x
Price to Earnings Ratio

14.9x


Total Market Cap: JP¥730.6tTotal Earnings: JP¥49.1tTotal Revenue: JP¥903.9tTotal 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 19.0x 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 4.4% 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 Market0.68%
Consumer Staples4.55%
Financials2.76%
Materials2.51%
Industrials1.23%
Tech0.67%
Utilities0.22%
Energy-0.26%
Consumer Discretionary-0.57%
Real Estate-0.85%
Healthcare-2.11%
Telecom-2.82%
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 (14.6%) 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 3.3% 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
285A Kioxia HoldingsJP¥16.50k24.2%
+JP¥1.7t		789.5%PE57.4xTech
6201 Toyota IndustriesJP¥19.44k7.9%
+JP¥425.2b		50.4%PE28.4xIndustrials
8267 AeonJP¥2.34k6.9%
+JP¥417.8b		95.1%PE183.6xConsumer Staples
8053 SumitomoJP¥6.25k4.5%
+JP¥323.2b		91.4%PE12.3xIndustrials
7011 Mitsubishi Heavy IndustriesJP¥4.80k1.8%
+JP¥285.6b		129.8%PE61.2xIndustrials
See more

Market Insights

Header cover image
Why Didn’t Oil React to Venezuela? 🇻🇪
Stella Ong avatar
Stella Ong
|
|
Maduro is out, the US stepped in… and oil markets barely reacted? Let’s look at why.
Continue reading
Which Markets Will Sink or Swim in 2026? 🌍
Last Week

Which Markets Will Sink or Swim in 2026? 🌍

Latest News

4062
JP¥8,317.00
IbidenLtd
7D
11.8%
1Y
229.5%
6758
JP¥3,701.00
Sony Group
7D
-3.8%
1Y
13.0%

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

The analyst price target for Sony Group has been trimmed slightly. Analysts cite a modestly higher discount rate while still highlighting potential from renewed PS Plus growth, stronger music streaming revenues, and the combined appeal of its games, anime, and music businesses.
9984
JP¥3,875.00
SoftBank Group
7D
-9.1%
1Y
51.5%

9984: Future Gains Will Be Driven By OpenAI And Data Infrastructure Commitments

Analysts have lowered their fair value estimate for SoftBank Group from ¥22,780.80 to ¥5,360.35, reflecting updated assumptions around modestly different revenue growth, profit margin and future P/E inputs. What's in the News SoftBank has fully funded its reported US$40b commitment to OpenAI, according to CNBC, completing a substantial capital allocation to the AI company (CNBC).
7011
JP¥4,795.00
Mitsubishi Heavy Industries
7D
1.8%
1Y
129.8%

7011: Conviction List Inclusion Will Support Future Returns From Ethanol Alliance

Analysts have lifted their fair value estimate for Mitsubishi Heavy Industries from ¥5,300 to ¥5,500, citing updated assumptions for revenue growth, profit margins and future P/E, along with recent positive Street interest, including the stock’s addition to an APAC Conviction List. Analyst Commentary Bullish Takeaways Bullish analysts highlight the stock’s addition to Goldman Sachs’ APAC Conviction List as a signal of strong confidence in the company’s execution and long term equity story.
8267
JP¥2,342.00
Aeon
7D
6.9%
1Y
95.1%
6857
JP¥21,770.00
Advantest
7D
-5.6%
1Y
121.7%

6857: AI Tester Demand And Higher Margins Will Drive Future Upside

Analysts have increased their fair value estimate for Advantest from ¥16,000 to ¥26,100, citing updated assumptions that combine a slightly higher discount rate and P/E multiple with meaningfully higher projected profit margins and adjusted revenue growth expectations. What's in the News Advantest announced a share repurchase program of up to 18,000,000 shares, or 2.47% of outstanding shares, for up to ¥150,000 million, running through October 28, 2026, with the stated aim of shareholder returns and capital efficiency (Buyback Transaction Announcements).
6098
JP¥8,453.00
Recruit Holdings
7D
-7.1%
1Y
-21.5%

Returns On Capital Are A Standout For Recruit Holdings (TSE:6098)

Jan 18
Returns On Capital Are A Standout For Recruit Holdings (TSE:6098)
7203
JP¥3,552.00
Toyota Motor
7D
-1.9%
1Y
21.8%

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

Analysts have nudged their price target for Toyota Motor slightly higher, reflecting a modest uplift in fair value and future P/E assumptions alongside an essentially unchanged discount rate, revenue growth, and profit margin inputs. What's in the News Perrone Robotics filed patent infringement lawsuits against Toyota and several other automakers, alleging unauthorized use of its automated vehicle and robotics technologies in automated driving systems in U.S. federal courts in Texas and Virginia (Lawsuits & Legal Issues).
2802
JP¥3,662.00
Ajinomoto
7D
7.4%
1Y
17.4%

2802: Share Repurchases And Biopharma Agreements Will Support A Higher Future Rating

Analysts have raised their price target on Ajinomoto from ¥4,800 to ¥5,000, citing updated assumptions around the discount rate, revenue growth, profit margins, and future P/E as the key drivers of the change. What's in the News Ajinomoto completed a share repurchase of 2,750,700 shares, or 0.28% of outstanding shares, for ¥9,332.49 million between November 6, 2025 and December 31, 2025 under the buyback announced on November 6, 2025 (company announcement).
9983
JP¥62,170.00
Fast Retailing
7D
-4.6%
1Y
26.6%

Fast Retailing Co., Ltd. Just Recorded A 16% EPS Beat: Here's What Analysts Are Forecasting Next

Jan 10
Fast Retailing Co., Ltd. Just Recorded A 16% EPS Beat: Here's What Analysts Are Forecasting Next
285A
JP¥16,500.00
Kioxia Holdings
7D
24.2%
1Y
789.5%
8053
JP¥6,251.00
Sumitomo
7D
4.5%
1Y
91.4%
6594
JP¥2,296.00
Nidec
7D
10.1%
1Y
-19.2%

6594: Accounting Probe Resolution Will Unlock Future Upside Potential

Analysts have kept their fair value estimate for Nidec steady at ¥3,195, citing only small tweaks to assumptions such as a slightly higher discount rate and a marginally adjusted future P/E outlook. What's in the News Nidec has announced a series of organizational changes effective January 1, 2026, including new CTO Technology Planning and Intellectual Property departments, a dedicated Urban Air Mobility Project and Inverter System Development Project within the Product Technology R&D Center, and a new Business Strategy and Sales Department within the Automotive Motor & Electronic Control Business unit (company announcement).
6501
JP¥5,181.00
Hitachi
7D
-4.0%
1Y
31.9%

6501: Government Energy And AI Infrastructure Will Support Measured Future Upside Potential

Analysts have nudged their price target on Hitachi slightly higher to reflect small adjustments in fair value, discount rate, revenue growth expectations, profit margin, and future P/E assumptions. The overall change is framed as a modest uplift rather than a major reset.
8316
JP¥5,395.00
Sumitomo Mitsui Financial Group
7D
-2.9%
1Y
42.9%

Sumitomo Mitsui Financial Group (TSE:8316) Is Increasing Its Dividend To ¥79.00

Dec 25
Sumitomo Mitsui Financial Group (TSE:8316) Is Increasing Its Dividend To ¥79.00
6201
JP¥19,440.00
Toyota Industries
7D
7.9%
1Y
50.4%