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

Japanese (NIKKEI) Market Analysis & Valuation

UpdatedMar 10, 2026
DataAggregated Company Financials
Companies3926
  • 7D-8.0%
  • 3M5.8%
  • 1Y31.7%
  • YTD2.9%

Over the last 7 days, the market has dropped 8.0%, driven by declines in every sector, especially the Industrials sector. In the last year, the market is actually up 32%. As for the next few years, earnings are expected to grow by 9.6% 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
Wed, 11 Mar 2026JP¥1241.5tJP¥1040.3tJP¥65.7t14.9x18.9x1.2x
Fri, 06 Feb 2026JP¥1237.1tJP¥1033.4tJP¥65.7t15x18.8x1.2x
Sun, 04 Jan 2026JP¥1156.6tJP¥1029.2tJP¥64.3t14.5x18x1.1x
Tue, 02 Dec 2025JP¥1132.3tJP¥1030.2tJP¥64.5t14.1x17.6x1.1x
Thu, 30 Oct 2025JP¥1120.2tJP¥1025.9tJP¥59.9t14.3x18.7x1.1x
Sat, 27 Sep 2025JP¥1095.6tJP¥1026.5tJP¥59.8t14.9x18.3x1.1x
Mon, 25 Aug 2025JP¥1069.2tJP¥1026.5tJP¥59.8t14.5x17.9x1x
Wed, 23 Jul 2025JP¥977.6tJP¥1021.1tJP¥61.9t13.5x15.8x1x
Fri, 20 Jun 2025JP¥971.0tJP¥1033.6tJP¥63.7t13.3x15.2x0.9x
Sun, 18 May 2025JP¥955.8tJP¥1030.3tJP¥63.7t13x15x0.9x
Tue, 15 Apr 2025JP¥872.6tJP¥1021.5tJP¥64.3t12.3x13.6x0.9x
Thu, 13 Mar 2025JP¥938.4tJP¥1020.0tJP¥64.3t13.1x14.6x0.9x
Sat, 08 Feb 2025JP¥955.6tJP¥1015.3tJP¥64.2t13.5x14.9x0.9x
Mon, 06 Jan 2025JP¥970.9tJP¥1011.1tJP¥61.9t13.7x15.7x1x
Wed, 04 Dec 2024JP¥959.3tJP¥1008.5tJP¥61.8t13.5x15.5x1x
Fri, 01 Nov 2024JP¥949.1tJP¥1002.0tJP¥59.8t13.3x15.9x0.9x
Sun, 29 Sep 2024JP¥964.8tJP¥1000.1tJP¥60.1t13.7x16.1x1x
Tue, 27 Aug 2024JP¥940.0tJP¥999.5tJP¥59.9t13.4x15.7x0.9x
Thu, 25 Jul 2024JP¥981.1tJP¥987.7tJP¥58.6t14.3x16.8x1x
Sat, 22 Jun 2024JP¥961.0tJP¥989.0tJP¥58.6t14.2x16.4x1x
Mon, 20 May 2024JP¥969.4tJP¥988.9tJP¥58.5t14x16.6x1x
Wed, 17 Apr 2024JP¥975.5tJP¥974.9tJP¥56.9t14.4x17.1x1x
Fri, 15 Mar 2024JP¥950.0tJP¥975.8tJP¥56.9t14.5x16.7x1x
Sun, 11 Feb 2024JP¥916.4tJP¥974.8tJP¥56.6t14.4x16.2x0.9x
Tue, 09 Jan 2024JP¥863.0tJP¥971.1tJP¥52.4t14.3x16.5x0.9x
Thu, 07 Dec 2023JP¥864.8tJP¥974.4tJP¥52.6t14.2x16.5x0.9x
Sat, 04 Nov 2023JP¥842.9tJP¥972.4tJP¥57.0t13.8x14.8x0.9x
Mon, 02 Oct 2023JP¥846.6tJP¥971.5tJP¥55.3t14.3x15.3x0.9x
Wed, 30 Aug 2023JP¥840.7tJP¥971.1tJP¥55.2t14.1x15.2x0.9x
Fri, 28 Jul 2023JP¥838.4tJP¥958.8tJP¥50.7t14.1x16.5x0.9x
Sun, 25 Jun 2023JP¥827.0tJP¥957.2tJP¥51.1t13.9x16.2x0.9x
Tue, 23 May 2023JP¥791.5tJP¥958.9tJP¥51.0t13.6x15.5x0.8x
Thu, 20 Apr 2023JP¥750.1tJP¥935.0tJP¥46.6t13x16.1x0.8x
Sat, 18 Mar 2023JP¥721.7tJP¥933.7tJP¥46.7t12.7x15.5x0.8x
Price to Earnings Ratio

15.5x


Total Market Cap: JP¥721.7tTotal Earnings: JP¥46.7tTotal Revenue: JP¥933.7tTotal Market Cap vs Earnings and Revenue0%0%0%
Japanese Market Price to Earnings3Y Average 16.3x202420252026
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 18.4x which is higher than its 3-year average PE of 16.3x.
Past Earnings Growth
  • The earnings for Japanese listed companies have grown 12% per year over the last three years.
  • Revenues for these companies have grown 3.7% 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-2.75%
Telecom-0.33%
Healthcare-1.53%
Real Estate-1.67%
Financials-2.13%
Tech-2.23%
Consumer Discretionary-2.31%
Consumer Staples-2.36%
Energy-2.62%
Industrials-4.01%
Utilities-5.22%
Materials-5.83%
Sector PE
  • Investors favour the Tech sector the most for future growth, which is trading above its 3-year average PE ratio of 24.9x.
    • The market's confidence is likely because analysts are expecting annual earnings growth of 16.3%, which is higher than its past year's earnings growth of 11.7% per year.
  • The Telecom sector is the least preferred by investors for future growth, which is trading below its 3-year average of 24.4x.
Forecasted Growth
  • Analysts are most optimistic on the Tech sector, expecting annual earnings growth of 16% over the next 5 years.
  • This is better than its past earnings growth rate of 12% per year.
  • In contrast, the Telecom sector is expected to see its earnings decline by 4.5% 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
7974 NintendoJP¥9.12k6.2%
+JP¥613.3b		-9.3%PE26.3xTelecom
6501 HitachiJP¥4.93k2.4%
+JP¥527.7b		36.1%PE27xIndustrials
6701 NECJP¥4.50k8.0%
+JP¥443.3b		57.9%PE24.4xTech
6702 FujitsuJP¥3.66k6.9%
+JP¥408.5b		26.9%PE20xTech
6740 Japan DisplayJP¥82.00215.4%
+JP¥346.6b		355.6%PS3.6xTech
See more

Market Insights

Header cover image
What the next 25 years will look like 🔮
Richard Bowman avatar
Richard Bowman
The first 25 years of this century were shaped by a few notable themes: China, Tech, and low interest rates. Let's now look at the themes shaping the next quarter of the century.
Continue reading
Three contrarian investing ideas for a new market

Latest News

7974
JP¥9,120.00
Nintendo
7D
6.2%
1Y
-9.3%
8053
JP¥5,772.00
Sumitomo
7D
-8.8%
1Y
68.9%
8035
JP¥40,030.00
Tokyo Electron
7D
-6.0%
1Y
87.3%

8035: Rich Dividends And Buybacks Will Still Leave Shares Overpriced

Analysts have lifted their price target for Tokyo Electron from ¥27,098 to ¥29,085, citing updated assumptions for slightly higher revenue growth, profit margins and future P/E multiples, as well as a modestly adjusted discount rate. What's in the News Tokyo Electron updated its consolidated earnings guidance for the fiscal year ending March 31, 2026, now expecting net sales of ¥2.41b, operating income of ¥593,000m, net income attributable to owners of parent of ¥550,000m, and net income per share of ¥1,200.05.
6702
JP¥3,657.00
Fujitsu
7D
6.9%
1Y
26.9%

6702: AI Infrastructure Partnerships And Capital Return Will Support Further Upside

Analysts have nudged their fair value estimate for Fujitsu to ¥5,940 from ¥5,918, reflecting updated views on a slightly higher discount rate, more moderate revenue growth and profit margins, and a higher assumed future P/E multiple. What's in the News Fujitsu issued consolidated earnings guidance for the year ending 31 March 2026, targeting revenue of ¥3,530,000 million, operating profit of ¥360,000 million, profit attributable to owners of the parent of ¥425,000 million, and basic EPS of ¥241.83 (corporate guidance).
6701
JP¥4,500.00
NEC
7D
8.0%
1Y
57.9%

6701: Share Buyback And Earnings Outlook Will Support A Stronger Future

Analysts have revised their price target on NEC to ¥6,362.5 from ¥6,050, reflecting updated assumptions on fair value, discount rate, revenue growth, profit margin and future P/E. What's in the News NEC has announced a share repurchase program of up to 6,800,000 shares, or 0.51% of issued shares excluding treasury stock, with a total purchase value of ¥30,000m, running through March 31, 2026 (company announcement).
6501
JP¥4,932.00
Hitachi
7D
2.4%
1Y
36.1%

6501: Share Repurchases And New Rail Signaling Will Support Future Upside

Analysts have made a small upward adjustment to their Hitachi price target to ¥5,838, with modest tweaks to fair value inputs, discount rate assumptions, revenue growth expectations and future P/E estimates supporting the change. What's in the News Hitachi Rail started revenue service for its new Communications Based Train Control digital signaling system on the Media Sharon Hill Line in the United States, covering about 11.9 miles of light rail between the 69th Street Transportation Center and communities in Media and Sharon Hill (Key Developments).
7203
JP¥3,473.00
Toyota Motor
7D
-6.2%
1Y
26.1%
6762
JP¥2,208.00
TDK
7D
5.4%
1Y
43.4%

6762: Conviction List Exit Will Cap Upside Despite Revised Earnings Guidance

Analysts have slightly reduced their fair value price target for TDK from about ¥1,794.10 to roughly ¥1,786.27, citing updated views on revenue growth, profit margins and future P/E, along with TDK's recent removal from an APAC Conviction List. Analyst Commentary Recent Street research highlights a more cautious tone around TDK, with the company being removed from a major APAC Conviction List as part of a monthly review.
6758
JP¥3,403.00
Sony Group
7D
1.0%
1Y
0.4%

6758: Content Franchises And Buybacks Will Offset Emerging AI Music Risks

Narrative Update on Sony Group The analyst price target for Sony Group has shifted slightly from ¥4,990.87 to ¥4,969.13, as analysts factor in updated assumptions for revenue growth, profit margins, discount rates and future P/E, while also weighing fresh concerns around AI driven risks to the music business. Analyst Commentary Recent Street research around Sony Group focuses heavily on the music segment, where AI generated content is emerging as a key debate for both upside and risk to the equity story.
9984
JP¥3,632.00
SoftBank Group
7D
-9.0%
1Y
85.2%

9984: AI Infrastructure Expansion And PayPay Listing Will Support Future Share Gains

Analysts are keeping their SoftBank Group fair value target steady at ¥7,000, while fine tuning their assumptions for revenue growth, profit margins, and future P/E to reflect updated views on the company’s earnings mix and risk profile. Analyst Commentary Bullish analysts who anchor on the ¥7,000 fair value target see this level as broadly in line with their refreshed assumptions around SoftBank Group’s earnings mix, risk profile, and targeted P/E multiple.
7011
JP¥4,648.00
Mitsubishi Heavy Industries
7D
-5.6%
1Y
100.8%

7011: Conviction List Inclusion Will Expose Lofty P/E To Execution Risks

Narrative Update Analysts have revised their fair value estimate for Mitsubishi Heavy Industries to ¥4,000 from about ¥2,785, citing its recent addition to a key APAC conviction list as support for a higher assumed P/E multiple and a slightly stronger margin outlook. Analyst Commentary The recent fair value revision to ¥4,000 and the stock's addition to a key APAC conviction list have pulled more attention to Mitsubishi Heavy Industries, but not all commentary is upbeat.
6857
JP¥24,075.00
Advantest
7D
-6.4%
1Y
203.9%

6857: AI Test Demand Will Support Stronger Margins And Future Upside

Analysts have raised their Advantest price target to ¥32,300, reflecting updated assumptions that include slightly adjusted discount rates, a modestly higher revenue growth outlook, stronger profit margin expectations, and a lower future P/E multiple. What's in the News Revised earnings guidance for the year ending March 31, 2026, with expected net sales of ¥1,070,000m, operating income of ¥454,000m, and net income attributable to owners of the parent of ¥328,500m, or basic EPS of ¥452.34, compared with previous guidance that referenced net sales of ¥950.0b and operating income of ¥374.0b (Corporate guidance).
5803
JP¥24,065.00
Fujikura
7D
-12.0%
1Y
325.4%
8316
JP¥5,356.00
Sumitomo Mitsui Financial Group
7D
-3.7%
1Y
46.4%
4689
JP¥407.20
LY
7D
8.4%
1Y
-21.0%

4689: Planned Merger And System Outage Impact Will Create Long-Term Upside

Analysts have slightly reduced their price target on LY to ¥557, citing updated assumptions for the discount rate, revenue growth, profit margins, and future P/E that keep their fair value view broadly in line with previous estimates. What's in the News LY cut its financial guidance for the fiscal year ending March 31, 2026, and now expects revenue of ¥2,000,000 million, compared with previous guidance of ¥2,100,000 million, citing the impact of an October 2025 system outage at ASKUL Corporation on full year consolidated revenue (Key Developments).
6740
JP¥82.00
Japan Display
7D
215.4%
1Y
355.6%