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Japanese (NIKKEI) Market Analysis & Valuation

UpdatedDec 23, 2024
DataAggregated Company Financials
Companies3985
  • 7D-1.5%
  • 3M1.7%
  • 1Y13.7%
  • YTD11.6%

Over the last 7 days, the market has dropped 1.5%, driven by pullbacks in every sector, especially the Industrials sector. As for the longer term, the market has actually risen by 14% in the last year. As for the next few years, earnings are expected to grow by 7.9% 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, 23 Dec 2024JP¥943.4tJP¥1010.8tJP¥61.7t13.4x15.3x0.9x
Wed, 20 Nov 2024JP¥944.8tJP¥1006.9tJP¥61.0t13.5x15.5x0.9x
Fri, 18 Oct 2024JP¥942.8tJP¥999.3tJP¥60.1t13.5x15.7x0.9x
Sun, 15 Sep 2024JP¥908.1tJP¥999.9tJP¥60.1t13.2x15.1x0.9x
Tue, 13 Aug 2024JP¥875.8tJP¥996.6tJP¥59.6t12.6x14.7x0.9x
Thu, 11 Jul 2024JP¥1018.6tJP¥986.9tJP¥58.5t14.4x17.4x1x
Sat, 08 Jun 2024JP¥968.7tJP¥989.5tJP¥58.6t14.1x16.5x1x
Mon, 06 May 2024JP¥965.4tJP¥974.4tJP¥56.5t14.4x17.1x1x
Wed, 03 Apr 2024JP¥967.6tJP¥975.8tJP¥56.9t14.5x17x1x
Fri, 01 Mar 2024JP¥956.7tJP¥975.7tJP¥56.9t14.4x16.8x1x
Sun, 28 Jan 2024JP¥898.1tJP¥971.3tJP¥52.4t14.7x17.1x0.9x
Tue, 26 Dec 2023JP¥844.9tJP¥971.2tJP¥52.5t13.9x16.1x0.9x
Thu, 23 Nov 2023JP¥862.8tJP¥977.7tJP¥53.1t14x16.2x0.9x
Sat, 21 Oct 2023JP¥820.7tJP¥971.7tJP¥55.3t13.8x14.9x0.8x
Mon, 18 Sep 2023JP¥881.9tJP¥971.3tJP¥55.2t14.4x16x0.9x
Wed, 16 Aug 2023JP¥834.6tJP¥970.7tJP¥55.1t13.9x15.1x0.9x
Fri, 14 Jul 2023JP¥820.0tJP¥957.2tJP¥50.6t13.8x16.2x0.9x
Sun, 11 Jun 2023JP¥812.7tJP¥959.1tJP¥51.1t13.6x15.9x0.8x
Tue, 09 May 2023JP¥761.4tJP¥941.9tJP¥47.9t13.5x15.9x0.8x
Thu, 06 Apr 2023JP¥743.6tJP¥934.0tJP¥46.6t12.7x16x0.8x
Sat, 04 Mar 2023JP¥742.6tJP¥933.7tJP¥46.7t12.9x15.9x0.8x
Mon, 30 Jan 2023JP¥730.6tJP¥904.2tJP¥49.1t12.5x14.9x0.8x
Wed, 28 Dec 2022JP¥704.8tJP¥903.1tJP¥49.1t12.2x14.4x0.8x
Fri, 25 Nov 2022JP¥748.0tJP¥902.7tJP¥49.1t12.8x15.2x0.8x
Sun, 23 Oct 2022JP¥701.7tJP¥865.1tJP¥45.7t12.3x15.3x0.8x
Tue, 20 Sep 2022JP¥722.0tJP¥863.4tJP¥45.6t12.5x15.8x0.8x
Thu, 18 Aug 2022JP¥747.1tJP¥863.8tJP¥45.5t12.8x16.4x0.9x
Sat, 16 Jul 2022JP¥706.2tJP¥835.5tJP¥48.1t12.5x14.7x0.8x
Mon, 13 Jun 2022JP¥721.7tJP¥838.8tJP¥49.5t12.6x14.6x0.9x
Wed, 11 May 2022JP¥694.3tJP¥824.4tJP¥52.2t12.2x13.3x0.8x
Fri, 08 Apr 2022JP¥709.5tJP¥818.6tJP¥51.0t12.3x13.9x0.9x
Sun, 06 Mar 2022JP¥691.9tJP¥821.4tJP¥51.1t12.1x13.5x0.8x
Tue, 01 Feb 2022JP¥711.2tJP¥805.9tJP¥48.5t12.4x14.6x0.9x
Thu, 30 Dec 2021JP¥753.3tJP¥800.2tJP¥48.4t13.3x15.6x0.9x
Price to Earnings Ratio

15.6x


Total Market Cap: JP¥753.3tTotal Earnings: JP¥48.4tTotal Revenue: JP¥800.2tTotal Market Cap vs Earnings and Revenue0%0%0%
Japanese Market Price to Earnings3Y Average 15.6x202220232024
Current Market PE
  • Investors are relatively neutral on the Japanese market at the moment, indicating that they expect earnings will grow in line with historical growth rates.
  • The market is trading close to its 3-year average PE ratio of 15.6x.
Past Earnings Growth
  • The earnings for Japanese listed companies have grown 8.5% per year over the last three years.
  • Revenues for these companies have grown 8.1% 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-1.46%
Information Technology0%
Financials0%
Health Care0%
Industrials0%
Real Estate-0.079%
Consumer Discretionary-0.089%
Healthcare-0.71%
Tech-1.24%
Telecom-1.47%
Energy-1.66%
Consumer Staples-1.72%
Industrials-1.79%
Materials-2.18%
Financials-3.12%
Utilities-4.43%
Sector PE
  • Investors favour the Healthcare sector the most for future growth, which is trading close to its 3-year average PE ratio of 29.1x.
    • The market's confidence is likely because analysts are expecting annual earnings growth of 11.6%, which is higher than its past year's earnings growth of 7.8% 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 Tech sector, expecting annual earnings growth of 13% over the next 5 years.
  • This is better than its past earnings growth rate of 7.4% 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
7203 Toyota MotorJP¥2.84k5.4%
+JP¥1.9t		11.8%PE8.7xConsumer Discretionary
7201 Nissan MotorJP¥450.0028.1%
+JP¥360.6b		-19.7%PE11xConsumer Discretionary
4568 Daiichi Sankyo CompanyJP¥4.38k3.0%
+JP¥239.2b		12.9%PE33xHealthcare
6701 NECJP¥13.71k5.7%
+JP¥197.2b		66.8%PE24.4xTech
6201 Toyota IndustriesJP¥11.77k5.7%
+JP¥194.4b		4.0%PE15.2xIndustrials
See more
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7 Investing Lessons From 2024

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This is our last newsletter of the year and a good time to focus on the third of those principles - the investing lessons we can all take from 2024...

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