Overseas investors are closely watching the shift in the valuation criteria for Japanese equities from PBR to PER, with the 15 September feature in Veritas EYE pointing out that improving earnings power will be key to valuation.
Overseas investors are increasingly placing greater emphasis on the ability to change as an investment criterion, and it has been pointed out that valuation metrics for Japanese equities will shift from PBR to PER. The analysis highlights the view that improving earnings power is becoming increasingly important.
The market response to large-scale share buybacks by companies such as ASICS is said to be muted, and how the market evaluates shareholder returns remains a focus. Veritas EYE also addresses this issue.
Analysis of retail and restaurant earnings points to a growing emphasis on margins, alongside concerns over higher costs.
These points have been compiled as a summary of multiple articles in Nikkei Veritas, with the focus on changes in the valuation criteria used by overseas investors.