The earnings multiple of equities in Japan has fallen sharply since the start of the year. In contrast, those of the US have held broadly steady. The upshot is that the 12-month trailing price/earnings ratio for equities in Japan is now some 5 points lower than that in the US. This is the lowest relative valuation of Japanese equities for more than thirty years.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services