By month end Japanese equities experienced a rebound following a turbulent start to the month of August. The price-to-earnings (P/E) ratio of Japanese companies dropped to 11.5x early in the month and subsequently recovered by month end to 13.8x. For context the July month-end P/E figure was 14.8x based on the Institutional Brokers’ Estimate System (IBES) Earnings per share (EPS) consensus; furthermore, the P/E ratio of the US S&P500 has returned to its July level. We believe that the recovery in Japanese equity prices is ongoing, and there are investment opportunities available for investors who focus on fundamentals.
Full article: pdf AMOI Market Outlook August 2024
Written by Kazuhiko Hosaka, Senior Product Specialist, Asset Management One Co., Ltd.