Japanese (NIKKEI) Market Analysis & Valuation

UpdatedMay 13, 2025

DataAggregated Company Financials

Companies3960

7D2.0%
3M0.9%
1Y1.0%
YTD0.2%

The market is up 2.0% over the last week, with the Information Technology sector leading the way, up 6.6%. On the other hand, with a decline of 7.4%, the Healthcare sector is lagging behind. As for last year, the market performance has been flat. Earnings are forecast to grow by 7.5% annually.

Trending IndustriesOil and Gas Biotech Software Renewable Energy

Market Valuation and Performance

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

Date	Market Cap	Revenue	Earnings	PE	Absolute PE	PS
Wed, 14 May 2025	JP¥966.3t	JP¥1026.3t	JP¥64.3t	13.2x	15x	0.9x
Fri, 11 Apr 2025	JP¥887.5t	JP¥1022.7t	JP¥64.2t	12.3x	13.8x	0.9x
Sun, 09 Mar 2025	JP¥942.1t	JP¥1019.9t	JP¥64.3t	13.1x	14.6x	0.9x
Tue, 04 Feb 2025	JP¥947.3t	JP¥1011.9t	JP¥63.0t	13.4x	15x	0.9x
Thu, 02 Jan 2025	JP¥971.4t	JP¥1010.9t	JP¥61.7t	13.7x	15.7x	1x
Sat, 30 Nov 2024	JP¥936.2t	JP¥1008.6t	JP¥61.8t	13.4x	15.1x	0.9x
Mon, 28 Oct 2024	JP¥919.6t	JP¥1001.7t	JP¥60.1t	13x	15.3x	0.9x
Wed, 25 Sep 2024	JP¥936.4t	JP¥1000.0t	JP¥60.1t	13.4x	15.6x	0.9x
Fri, 23 Aug 2024	JP¥941.8t	JP¥999.4t	JP¥59.9t	13.3x	15.7x	0.9x
Sun, 21 Jul 2024	JP¥1003.2t	JP¥987.6t	JP¥58.6t	14.5x	17.1x	1x
Tue, 18 Jun 2024	JP¥951.8t	JP¥989.0t	JP¥58.6t	14x	16.2x	1x
Thu, 16 May 2024	JP¥965.0t	JP¥980.6t	JP¥57.7t	14.3x	16.7x	1x
Sat, 13 Apr 2024	JP¥979.0t	JP¥974.7t	JP¥56.9t	14.8x	17.2x	1x
Mon, 11 Mar 2024	JP¥972.0t	JP¥975.9t	JP¥56.9t	14.6x	17.1x	1x
Wed, 07 Feb 2024	JP¥909.9t	JP¥968.6t	JP¥53.2t	14.7x	17.1x	0.9x
Fri, 05 Jan 2024	JP¥859.2t	JP¥971.1t	JP¥52.4t	14.3x	16.4x	0.9x
Sun, 03 Dec 2023	JP¥863.7t	JP¥977.5t	JP¥53.1t	14.2x	16.3x	0.9x
Tue, 31 Oct 2023	JP¥812.7t	JP¥971.6t	JP¥55.4t	13.5x	14.7x	0.8x
Thu, 28 Sep 2023	JP¥865.4t	JP¥971.5t	JP¥55.3t	14.5x	15.7x	0.9x
Sat, 26 Aug 2023	JP¥827.6t	JP¥971.1t	JP¥55.2t	13.9x	15x	0.9x
Mon, 24 Jul 2023	JP¥826.5t	JP¥957.9t	JP¥50.6t	14x	16.3x	0.9x
Wed, 21 Jun 2023	JP¥834.7t	JP¥959.3t	JP¥51.1t	14x	16.3x	0.9x
Fri, 19 May 2023	JP¥789.5t	JP¥959.4t	JP¥51.0t	13.5x	15.5x	0.8x
Sun, 16 Apr 2023	JP¥742.8t	JP¥935.1t	JP¥46.6t	13x	15.9x	0.8x
Tue, 14 Mar 2023	JP¥736.2t	JP¥933.6t	JP¥46.7t	12.8x	15.8x	0.8x
Thu, 09 Feb 2023	JP¥730.1t	JP¥917.1t	JP¥47.8t	12.6x	15.3x	0.8x
Sat, 07 Jan 2023	JP¥694.1t	JP¥902.1t	JP¥49.1t	12x	14.1x	0.8x
Mon, 05 Dec 2022	JP¥724.8t	JP¥902.7t	JP¥49.1t	12.5x	14.8x	0.8x
Wed, 02 Nov 2022	JP¥722.3t	JP¥871.6t	JP¥45.7t	12.4x	15.8x	0.8x
Fri, 30 Sep 2022	JP¥698.4t	JP¥863.4t	JP¥45.6t	12.3x	15.3x	0.8x
Sun, 28 Aug 2022	JP¥738.1t	JP¥864.2t	JP¥45.6t	12.9x	16.2x	0.9x
Tue, 26 Jul 2022	JP¥724.7t	JP¥837.2t	JP¥48.2t	12.8x	15x	0.9x
Thu, 23 Jun 2022	JP¥689.5t	JP¥839.2t	JP¥49.5t	12.2x	13.9x	0.8x
Sat, 21 May 2022	JP¥698.6t	JP¥836.7t	JP¥49.5t	12.2x	14.1x	0.8x

Price to Earnings Ratio

14.1x

Sat, 21 May 2022

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 9.1% per year over the last three years.
Revenues for these companies have grown 7.1% 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	1.96%
Tech	6.59%
Financials	5.27%
Industrials	2.89%
Energy	2.59%
Consumer Staples	1.74%
Materials	1.23%
Utilities	0.88%
Consumer Discretionary	0.60%
Real Estate	0.52%
Telecom	0.16%
Healthcare	-7.42%

Sector PE

Investors favour the Healthcare sector the most for future growth even though it's trading below its 3-year average PE ratio of 29.5x.

Analysts expect its future annual earnings growth (9.9%) 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 Tech sector, expecting annual earnings growth of 13% over the next 5 years.
This is better than its past earnings growth rate of 10% per year.

In contrast, the Utilities 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?

Company	Last Price	7D	1Y	Valuation	Sector
8306 Mitsubishi UFJ Financial Group	JP¥1.91k	9.8% +JP¥2.0t	18.8%	PB1.1x	Financials
9613 NTT DATA Group	JP¥3.98k	34.3% +JP¥1.4t	74.6%	PE39.2x	Tech
8035 Tokyo Electron	JP¥24.00k	13.5% +JP¥1.3t	-30.6%	PE20.2x	Tech
8316 Sumitomo Mitsui Financial Group	JP¥3.56k	8.4% +JP¥1.1t	16.5%	PB0.9x	Financials
6098 Recruit Holdings	JP¥8.98k	8.8% +JP¥1.1t	28.3%	PE32.1x	Industrials

Market Insights

Buffett Steps Down - The Lessons And Legacy Of The G.O.A.T.

Richard Bowman

May 2025

5 comments

The time has come. The G.O.A.T. is retiring. Warren Buffett’s decision to step down as CEO of Berkshire Hathaway marks the end of an era - 60 years, to be precise.