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Japanese (NIKKEI) Market Analysis & Valuation

UpdatedDec 14, 2025
DataAggregated Company Financials
Companies3948
  • 7D1.7%
  • 3M7.6%
  • 1Y23.6%
  • YTD23.5%

The market has climbed 1.7% in the last 7 days, lead by the Industrials sector with a gain of 3.2%. The market is up 24% over the last 12 months. Looking forward, earnings are forecast to grow by 8.4% annually.

Trending IndustriesOil and GasBiotechSoftwareRenewable Energy

Market Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 14 Dec 2025JP¥1157.9tJP¥1029.9tJP¥64.2t14.2x18x1.1x
Tue, 11 Nov 2025JP¥1133.4tJP¥1030.9tJP¥62.4t14.2x18.2x1.1x
Thu, 09 Oct 2025JP¥1102.7tJP¥1023.7tJP¥59.7t14.6x18.5x1.1x
Sat, 06 Sep 2025JP¥1069.9tJP¥1026.4tJP¥59.8t14.7x17.9x1x
Mon, 04 Aug 2025JP¥1015.4tJP¥1022.3tJP¥60.7t14.1x16.7x1x
Wed, 02 Jul 2025JP¥985.1tJP¥1027.5tJP¥62.8t13.4x15.7x1x
Fri, 30 May 2025JP¥976.9tJP¥1033.5tJP¥63.7t13x15.3x0.9x
Sun, 27 Apr 2025JP¥918.2tJP¥1021.6tJP¥64.4t12.8x14.3x0.9x
Tue, 25 Mar 2025JP¥968.8tJP¥1019.8tJP¥64.3t13.4x15.1x1x
Thu, 20 Feb 2025JP¥966.8tJP¥1020.5tJP¥64.4t13.3x15x0.9x
Sat, 18 Jan 2025JP¥933.6tJP¥1010.3tJP¥61.9t13.3x15.1x0.9x
Mon, 16 Dec 2024JP¥956.7tJP¥1009.6tJP¥61.8t13.5x15.5x0.9x
Wed, 13 Nov 2024JP¥956.2tJP¥1004.7tJP¥58.5t13.5x16.3x1x
Fri, 11 Oct 2024JP¥953.1tJP¥1000.0tJP¥60.1t13.5x15.9x1x
Sun, 08 Sep 2024JP¥916.7tJP¥999.7tJP¥60.1t13.3x15.3x0.9x
Tue, 06 Aug 2024JP¥789.6tJP¥991.7tJP¥58.6t11.5x13.5x0.8x
Thu, 04 Jul 2024JP¥1004.6tJP¥986.0tJP¥58.3t14.6x17.2x1x
Sat, 01 Jun 2024JP¥974.8tJP¥987.7tJP¥58.6t14.1x16.6x1x
Mon, 29 Apr 2024JP¥952.8tJP¥975.4tJP¥57.3t14.4x16.6x1x
Wed, 27 Mar 2024JP¥991.4tJP¥976.5tJP¥56.9t14.9x17.4x1x
Fri, 23 Feb 2024JP¥950.7tJP¥975.6tJP¥56.6t14.3x16.8x1x
Sun, 21 Jan 2024JP¥901.4tJP¥971.4tJP¥52.5t14.5x17.2x0.9x
Tue, 19 Dec 2023JP¥840.2tJP¥974.4tJP¥52.5t13.9x16x0.9x
Thu, 16 Nov 2023JP¥861.1tJP¥977.0tJP¥52.5t13.9x16.4x0.9x
Sat, 14 Oct 2023JP¥839.6tJP¥971.4tJP¥55.2t13.9x15.2x0.9x
Mon, 11 Sep 2023JP¥858.6tJP¥971.1tJP¥55.2t14.3x15.6x0.9x
Wed, 09 Aug 2023JP¥835.4tJP¥964.7tJP¥52.4t14.1x15.9x0.9x
Fri, 07 Jul 2023JP¥830.8tJP¥957.1tJP¥50.6t14x16.4x0.9x
Sun, 04 Jun 2023JP¥797.8tJP¥958.8tJP¥51.1t13.4x15.6x0.8x
Tue, 02 May 2023JP¥763.3tJP¥941.1tJP¥47.8t13.4x16x0.8x
Thu, 30 Mar 2023JP¥734.4tJP¥933.9tJP¥46.6t12.9x15.8x0.8x
Sat, 25 Feb 2023JP¥733.2tJP¥934.5tJP¥46.7t12.7x15.7x0.8x
Mon, 23 Jan 2023JP¥710.3tJP¥903.2tJP¥49.0t12.3x14.5x0.8x
Wed, 21 Dec 2022JP¥705.4tJP¥903.0tJP¥49.1t12.2x14.4x0.8x
Price to Earnings Ratio

14.4x


Total Market Cap: JP¥705.4tTotal Earnings: JP¥49.1tTotal Revenue: JP¥903.0tTotal 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 18.0x 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 Market1.69%
Industrials3.25%
Real Estate2.89%
Consumer Discretionary2.86%
Materials2.46%
Utilities2.28%
Financials1.70%
Tech1.02%
Healthcare0.78%
Energy0.77%
Consumer Staples-0.37%
Telecom-2.70%
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 are expecting annual earnings growth of 13.7%, which is lower than the prior year's growth of 15.4% 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 16% 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 4.1% 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
7203 Toyota MotorJP¥3.26k7.5%
+JP¥3.0t		20.9%PE9.2xConsumer Discretionary
8031 MitsuiJP¥4.61k9.4%
+JP¥1.1t		42.2%PE14.5xIndustrials
8001 ITOCHUJP¥9.76k6.2%
+JP¥802.4b		26.2%PE14.5xIndustrials
6752 Panasonic HoldingsJP¥2.18k17.5%
+JP¥756.4b		38.1%PE15.9xConsumer Discretionary
6503 Mitsubishi ElectricJP¥4.79k7.3%
+JP¥665.1b		82.0%PE24.8xIndustrials
See more

Market Insights

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8035
JP¥31,500.00
Tokyo Electron
7D
-4.9%
1Y
32.0%

8035: Rising Guidance And Dividends Will Likely Fail To Justify Current Price

Analysts have raised their price target on Tokyo Electron from ¥21,700 to ¥25,700, citing higher expected revenue growth and a richer future earnings multiple, despite a slightly higher discount rate and stable profit margins. What's in the News The company raised full year fiscal 2026 consolidated guidance and now expects net sales of JPY 2,380,000 million, operating income of JPY 586,000 million, and net income attributable to owners of parent of JPY 488,000 million, up from prior forecasts (company guidance).
2802
JP¥3,366.00
Ajinomoto
7D
-5.8%
1Y
3.7%

2802: Gene Therapy CDMO And Share Buybacks Will Support Balanced Outlook

Analysts have raised their price target on Ajinomoto from ¥3,300 to ¥3,500, citing slightly stronger expected revenue growth, modestly higher profit margins, and a small uptick in the assumed future P E multiple, despite a marginally higher discount rate. What's in the News Ajinomoto has completed a major share buyback program announced on May 8, 2025, repurchasing 27,902,000 shares, or 2.83% of outstanding stock, for about ¥100 billion to enhance shareholder returns (company announcement).
6752
JP¥2,175.00
Panasonic Holdings
7D
17.5%
1Y
38.1%

6752: Future Tariffs On Chip Heavy Electronics Will Pressure Earnings Outlook

Analysts have raised their price target on Panasonic Holdings by approximately 7 percent to ¥1,600, citing slightly lower discount rate assumptions, an improved revenue outlook despite still modest contraction, and higher expected profit margins on a cheaper projected future P/E multiple. What's in the News The Trump administration is considering tariffs on imported electronic devices based on the value of their chip content, a proposal that could affect major manufacturers including Panasonic alongside peers such as Sony, Nintendo, Samsung, and Foxconn (Reuters).
8031
JP¥4,607.00
Mitsui
7D
9.4%
1Y
42.2%
7203
JP¥3,260.00
Toyota Motor
7D
7.5%
1Y
20.9%

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¥4,793.00
Mitsubishi Electric
7D
7.3%
1Y
82.0%
8267
JP¥2,289.00
Aeon
7D
-9.2%
1Y
78.4%

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

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9984
JP¥17,895.00
SoftBank Group
7D
-7.2%
1Y
91.8%
8306
JP¥2,499.00
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.
6501
JP¥5,010.00
Hitachi
7D
2.6%
1Y
25.3%

6501: Government Energy Infrastructure Projects Will Drive Future Upside Potential

Analysts have nudged their price target for Hitachi higher, from approximately ¥5,415 to ¥5,508, citing slightly stronger expectations for revenue growth, profit margins, and long term earnings multiples. 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 improving energy efficiency by over 50% in 24/7 cold chain cargo operations (client announcement).
7974
JP¥11,730.00
Nintendo
7D
-6.2%
1Y
28.6%
6758
JP¥4,181.00
Sony Group
7D
-3.5%
1Y
24.5%

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¥9,763.00
ITOCHU
7D
6.2%
1Y
26.2%
8053
JP¥5,398.00
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7D
10.2%
1Y
61.8%

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6701
JP¥5,526.00
NEC
7D
-3.4%
1Y
111.6%

6701: Earnings and Merger Activity Will Guide Future Market Performance

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7182
JP¥2,130.00
JAPAN POST BANK
7D
8.7%
1Y
39.7%

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