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

Japanese (NIKKEI) Market Analysis & Valuation

UpdatedSep 15, 2025
DataAggregated Company Financials
Companies3952
  • 7D1.8%
  • 3M13.3%
  • 1Y22.1%
  • YTD15.0%

The market is up 1.8% over the last week, with the Information Technology sector leading the way, up 5.2%. In the last year, the market has climbed 22%. As for the next few years, earnings are expected to grow by 8.2% 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
Mon, 15 Sep 2025JP¥1088.4tJP¥1026.5tJP¥59.8t14.7x18.2x1.1x
Wed, 13 Aug 2025JP¥1052.5tJP¥1022.6tJP¥58.6t14.3x18x1x
Fri, 11 Jul 2025JP¥970.8tJP¥1022.2tJP¥62.1t13.4x15.6x0.9x
Sun, 08 Jun 2025JP¥963.7tJP¥1035.0tJP¥63.7t13.1x15.1x0.9x
Tue, 06 May 2025JP¥938.9tJP¥1024.1tJP¥64.6t12.9x14.5x0.9x
Thu, 03 Apr 2025JP¥921.8tJP¥1020.8tJP¥64.1t12.9x14.4x0.9x
Sat, 01 Mar 2025JP¥935.6tJP¥1020.2tJP¥64.4t13x14.5x0.9x
Mon, 27 Jan 2025JP¥957.3tJP¥1010.0tJP¥61.9t13.5x15.5x0.9x
Wed, 25 Dec 2024JP¥951.6tJP¥1010.9tJP¥61.8t13.4x15.4x0.9x
Fri, 22 Nov 2024JP¥936.1tJP¥1007.2tJP¥61.7t13.5x15.2x0.9x
Sun, 20 Oct 2024JP¥943.1tJP¥1001.0tJP¥60.1t13.5x15.7x0.9x
Tue, 17 Sep 2024JP¥908.1tJP¥1000.0tJP¥60.1t13.2x15.1x0.9x
Thu, 15 Aug 2024JP¥909.4tJP¥997.9tJP¥60.0t13x15.2x0.9x
Sat, 13 Jul 2024JP¥1015.3tJP¥987.0tJP¥58.5t14.6x17.4x1x
Mon, 10 Jun 2024JP¥968.3tJP¥989.6tJP¥58.6t14.1x16.5x1x
Wed, 08 May 2024JP¥971.9tJP¥974.4tJP¥56.5t14.5x17.2x1x
Fri, 05 Apr 2024JP¥971.9tJP¥975.8tJP¥56.9t14.6x17.1x1x
Sun, 03 Mar 2024JP¥966.6tJP¥975.7tJP¥56.9t14.5x17x1x
Tue, 30 Jan 2024JP¥908.2tJP¥971.3tJP¥52.4t14.8x17.3x0.9x
Thu, 28 Dec 2023JP¥854.7tJP¥971.2tJP¥52.5t14x16.3x0.9x
Sat, 25 Nov 2023JP¥867.5tJP¥977.7tJP¥53.1t14.1x16.3x0.9x
Mon, 23 Oct 2023JP¥820.7tJP¥971.7tJP¥55.3t13.8x14.9x0.8x
Wed, 20 Sep 2023JP¥882.3tJP¥971.3tJP¥55.2t14.5x16x0.9x
Fri, 18 Aug 2023JP¥821.2tJP¥970.5tJP¥55.1t13.8x14.9x0.8x
Sun, 16 Jul 2023JP¥818.6tJP¥957.6tJP¥50.6t13.8x16.2x0.9x
Tue, 13 Jun 2023JP¥817.9tJP¥959.2tJP¥51.1t13.7x16x0.9x
Thu, 11 May 2023JP¥766.0tJP¥943.3tJP¥47.3t13.5x16.2x0.8x
Sat, 08 Apr 2023JP¥723.3tJP¥934.0tJP¥46.6t12.7x15.5x0.8x
Mon, 06 Mar 2023JP¥742.6tJP¥933.7tJP¥46.7t12.9x15.9x0.8x
Wed, 01 Feb 2023JP¥727.6tJP¥905.0tJP¥49.4t12.5x14.7x0.8x
Fri, 30 Dec 2022JP¥702.6tJP¥903.1tJP¥49.1t12.1x14.3x0.8x
Sun, 27 Nov 2022JP¥747.8tJP¥902.8tJP¥49.1t12.8x15.2x0.8x
Tue, 25 Oct 2022JP¥701.7tJP¥865.1tJP¥45.7t12.3x15.3x0.8x
Thu, 22 Sep 2022JP¥715.5tJP¥863.4tJP¥45.6t12.4x15.7x0.8x
Price to Earnings Ratio

15.7x


Total Market Cap: JP¥715.5tTotal Earnings: JP¥45.6tTotal Revenue: JP¥863.4tTotal Market Cap vs Earnings and Revenue0%0%0%
Japanese Market Price to Earnings3Y Average 15.8x202320242025
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 18.2x which is higher than its 3-year average PE of 15.8x.
Past Earnings Growth
  • The earnings for Japanese listed companies have grown 9.5% per year over the last three years.
  • Revenues for these companies have grown 5.9% 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 Market1.75%
Telecom5.66%
Tech5.19%
Real Estate2.84%
Utilities2.56%
Energy1.30%
Industrials1.22%
Financials0.78%
Materials0.67%
Consumer Discretionary0.18%
Healthcare-0.11%
Consumer Staples-0.14%
Sector PE
  • Investors favour the Tech sector the most for future growth, which is trading above its 3-year average PE ratio of 23.0x.
    • The market's confidence is likely because analysts are expecting annual earnings growth of 13.1%, which is higher than its past year's earnings growth of 10.4% per year.
  • The Financials sector is the least preferred by investors for future growth, which is trading close to its 3-year average of 13.3x.
Forecasted Growth
  • Analysts are most optimistic on the Energy sector, expecting annual earnings growth of 14% over the next 5 years.
  • This is better than its past earnings growth rate of 3.8% per year.
  • In contrast, the Telecom industry is expected to see its earnings growth to stay flat over the next few years.

Top Stock Gainers and Losers

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

CompanyLast Price7D1YValuationSector
9984 SoftBank GroupJP¥18.23k17.3%
+JP¥3.8t		116.3%PE15xTelecom
6857 AdvantestJP¥13.95k21.9%
+JP¥1.8t		118.8%PE44.9xTech
6758 Sony GroupJP¥4.29k4.7%
+JP¥1.2t		63.5%PE21.5xConsumer Discretionary
7974 NintendoJP¥14.24k7.3%
+JP¥1.1t		87.8%PE56.4xTelecom
8035 Tokyo ElectronJP¥22.59k11.6%
+JP¥1.1t		-4.6%PE19.3xTech
See more

Market Insights

Header cover image
💸 Finding Quality Dividend Yields in a Rate-Cutting Environment
Richard Bowman avatar
Richard Bowman
|
|
The market has already priced in a 25bps rate cut from the Fed next week like it’s a done deal. So this week, we’re zooming in on what’s really been going on in the bond market, and what it all means for dividend investors who want to maintain yield.
Continue reading
💸 How to Navigate Lofty Valuations in 2025
Last Week

💸 How to Navigate Lofty Valuations in 2025

Latest News

7532
JP¥5,244.00
Pan Pacific International Holdings
7D
-4.8%
1Y
37.3%
8035
JP¥22,585.00
Tokyo Electron
7D
11.6%
1Y
-4.6%

Next-generation AI Servers Will Ignite Semiconductor Demand

The consensus price target for Tokyo Electron was slightly reduced, primarily reflecting lowered revenue growth expectations, resulting in a marginal decrease in fair value from ¥27,999 to ¥27,499. What's in the News Three people were indicted in Taiwan for allegedly stealing sensitive 2-nanometer chip technology from TSMC to aid Tokyo Electron's etching machine development and improve its competitive position with TSMC (Wall Street Journal).
7974
JP¥14,240.00
Nintendo
7D
7.3%
1Y
87.8%
6857
JP¥13,950.00
Advantest
7D
21.9%
1Y
118.8%
4502
JP¥4,493.00
Takeda Pharmaceutical
7D
-1.8%
1Y
8.6%
9984
JP¥18,230.00
SoftBank Group
7D
17.3%
1Y
116.3%
4568
JP¥3,544.00
Daiichi Sankyo Company
7D
-2.1%
1Y
-31.0%
7203
JP¥2,889.00
Toyota Motor
7D
-2.5%
1Y
17.7%

Recovering Production And Battery Investments Will Boost Future Profitability

The upward revision in Toyota Motor’s analyst price target is primarily driven by improved consensus revenue growth forecasts, with the fair value increasing from ¥3,067 to ¥3,158. What's in the News Toyota agreed to a class action settlement regarding an alleged hands-free phone system defect in several vehicle models, providing an Outreach Program to educate affected owners on resolving the issue via settings adjustments.
8031
JP¥3,644.00
Mitsui
7D
-1.9%
1Y
26.0%

LNG And Low-Carbon Ammonia Investments Will Power Cleaner Energy Future

Despite a notable decrease in consensus revenue growth forecasts, Mitsui's consensus price target has been revised upward from ¥3,618 to ¥3,823, likely reflecting improved market sentiment and a higher future P/E multiple. What's in the News Berkshire Hathaway has increased its stake in Mitsui & Co, though the specific ownership percentage was not disclosed by the company (Reuters).
6367
JP¥17,720.00
Daikin IndustriesLtd
7D
-3.8%
1Y
2.6%

Returns On Capital At Daikin IndustriesLtd (TSE:6367) Have Hit The Brakes

Sep 07
Returns On Capital At Daikin IndustriesLtd (TSE:6367) Have Hit The Brakes
285A
JP¥4,440.00
Kioxia Holdings
7D
44.9%
1Y
n/a
7011
JP¥3,818.00
Mitsubishi Heavy Industries
7D
5.8%
1Y
115.2%
6758
JP¥4,286.00
Sony Group
7D
4.7%
1Y
63.5%

PlayStation Ecosystem And Sensor Technology Will Secure Future Resilience

With both the consensus analyst price target and key valuation metrics such as the future P/E ratio and discount rate remaining essentially unchanged, there is no material revision to Sony Group’s estimated fair value, which stays at ¥4639. What's in the News Sony is pushing for its first-party PlayStation studios to drive more revenue growth and take calculated risks, while maintaining their creative independence (Financial Times, 2025-08-25).
6501
JP¥4,091.00
Hitachi
7D
5.0%
1Y
19.2%

Digital Services And Electrification Will Power Future Infrastructure

With Hitachi’s future P/E and discount rate both essentially unchanged, analysts have maintained their fair value estimate with the consensus price target remaining steady at ¥4801. What's in the News Hitachi's board scheduled a meeting to review the status of common stock repurchases.
7267
JP¥1,649.50
Honda Motor
7D
-2.6%
1Y
12.1%

US Localization And Emerging Markets Will Define Future Mobility

Honda Motor's consensus future P/E has risen modestly, reflecting slight multiple expansion despite stable revenue growth forecasts, resulting in a marginal increase in the analyst price target from ¥1654 to ¥1672. What's in the News Honda entered a multi-year partnership with Helm.ai to accelerate next-generation self-driving capabilities, focusing on ADAS for consumer cars by leveraging AI and generative simulation; large-scale deployment of an E2E AI system is targeted for mass production after 2027.
6902
JP¥2,139.00
DENSO
7D
-2.0%
1Y
5.7%