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Japan Equities

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Modeled fair value
EWJ · Japan Broad Market
+1.3Cheap
406080100120140160FAIRMARKET
P10–P90P25–P75Median fair valueToday's market price = 100

Today’s price sits at the 28.2th percentile of modeled fair value — 72% of modeled scenarios put fair value above the market.

Median fair value
105.9
index, market = 100
Upside to median
+5.9%
Last close
$97.93
2026-09-25
Confidence
moderate-high
72/100
Modeled returns

Return distributions, not point forecasts

Percentiles describe the spread of scenario outcomes under the stated method. The width of the range carries as much information as the midpoint.

One year

modeled
P90
+23.0%
P75
+16.0%
Median
+7.5%
P25
-1.0%
P10
-13.0%

63% of modeled scenarios end positive.

Earnings growth plus a rising payout from the ongoing buyback and cross-shareholding unwind, plus a distribution of multiple outcomes around a 16.6x forward starting point, with an explicit unhedged yen translation component.

Three years, annualised

modeled
P90
+13.0%
P75
+9.5%
Median
+6.0%
P25
+2.5%
P10
-2.0%

Three-year earnings projection incorporating continued return-on-equity improvement, with a terminal multiple held close to the global index rather than assuming a premium.

Against the Treasury hurdle

1y Treasury
4.50%
Expected excess
+3.0%
Basis
proxy

A modelled three-point edge over the 1-year Treasury, of which a meaningful share depends on the yen for an unhedged dollar investor.

Instruments

5 in this asset class

SymbolValuationFair valueLast close1y modeled
EWJ
Japan Broad Market
+1.3Cheap105.9$97.93+7.5%
EWJV
Japan Value Equity
+2.2Cheap111.0$49.10+9.0%
SCJ
Japan Small-Cap Equity
+1.9Cheap109.0$110.80+8.5%
JPXN
Japan JPX-Nikkei 400
+1.4Cheap106.5$103.98+7.5%
DXJ
Japan Hedged Equity
+0.8Somewhat cheap103.5$181.27+7.0%