A comparison of the current bull market with the asset bubble period indicates that the Nikkei's forward P/E is significantly lower than during the asset bubble period, while differences in share-price levels and earnings growth have also been highlighted.
The Nikkei has been on an upward trend since the Tokyo Stock Exchange's request at the end of March 2023, reaching the ¥70,000 level at the close for the first time in history on 18 June 2026. Data on the Nikkei and Japanese companies' ordinary profits are also presented, providing a context for long-term economic trends.
Comparing the asset bubble period with the current bull market, the Nikkei's performance is said to have remained broadly at the same level, while the forward P/E rose significantly during the asset bubble period but has shown little change in the current bull market.
Most of the Nikkei's rise since the TSE's request is attributable to EPS growth, while the contribution from a higher forward P/E, which reflects investor expectations, is considered limited. As of 18 September 2026, the Nikkei was approximately 1.7 times its December 1989 record high of ¥38,915, while Japanese companies' ordinary profits for fiscal 2026 are expected to be approximately 4.7 times their fiscal 1989 level.
The comparison emphasizes differences in profit levels and growth, and some observers say these factors should be considered separately when making investment decisions.