Japan stocks

EV/EBITDA sector-relative strategy on JPX vs S&P 500 cumulative returns 2006-2025. Strategy returned approximately 149% total vs 530.71% for SPY.

Japan stocks

EV/EBITDA Sector-Relative Value on Japan: Value That Needs Government

We ran a sector-relative EV/EBITDA screen on 19 years of Japanese stock data from JPX (Tokyo Stock Exchange). The signal: buy when a stock's EV/EBITDA falls below 70% of its sector median, filtered for quality. The result: 3.64% CAGR vs 7.64% SPY, -4.00%

P/E compression

Japan P/E Compression: Underperforms by 2.29% Annually

We tested P/E compression mean reversion on 25 years of Japanese stock data. The strategy returned 5.35% annually (JPY-denominated) vs 7.64% for SPY, underperforming by 2.29% per year. This is an honest look at why P/E compression doesn't work in Japan: structural deflation,