Introducing a method to check whether the stock price is undervalued from the Nikkei Stock Average｜Buying below 25,000 yen
Are you making good use of the Nikkei Stock Average?
On this page, I will explain “How to judge whether Japanese stocks are cheap from the Nikkei Stock Average” in an easy-to-understand manner.
- Opportunity to buy if the Nikkei stock average is in the 25,000 yen range
- Determined by whether the Nikkei average PER is 12 to 13 times
- Basically 12 to 16 times
What is the Nikkei Stock Average?
The Nikkei Stock Average is the average of 225 stocks selected from various industries.
- “Nihon Keizai Shimbun” selects stocks (225 stocks)
- Since it is based on the stock price, the size of the company does not affect
- Easily affected by stocks with high stock prices
Because the stock price is important, as shown below, “a few stocks with high stock prices account for about 30% of the total”.
Although it is a fairly biased index, many investors use the Nikkei Stock Average as a reference when trading stocks.
Let’s know the “market view” and judge it, not that it went down somehow!
Specifically, when the Nikkei average PER is 12 times, if you search for stocks, you will find many cheap and excellent stocks!
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Let’s invest logically, not somehow!