Bubble Boom? Reasons why Japanese companies' PBR attracts attention [Economic column]
2023-03-05 00:08:00
Do you know the word "PBR" that has been a hot topic in the market recently? In Japanese, it is called "price book value ratio". An index used to determine whether a stock is undervalued or overvalued, and indicates how many times the stock price is the net assets per share (total assets minus liabilities, which is the same as the company's "liquidation value"). I'm here. If the PBR is less than 1x, it means that the company is below its liquidation value, which means it is undervalued or not valued in the market. In Japan, more than half of the major companies have fallen into "PBR less than 1 times", and the percentage is outstanding compared to Europe and the United States. However, investors are now focusing on "low PBR" stocks that have been neglected for many years, and there are even voices that it may be a bubble. I asked what was going on. (Economics Department reporter Kei Nakazawa)
