An increasing number of Japanese stocks are trading below book value despite corporate reforms that have attracted investor praise, suggesting managers need a bolder approach to drive shareholder wealth.
About 38% of Topix 500 companies were trading below book value as of the end of September, up from 32.2% in March, according to data compiled by Bloomberg.
That’s a reversal from an earlier falling trend, when the ratio dropped from 43.9% in December 2022 following the Tokyo Stock Exchange’s pressure on low valuation companies to roll out business improvement plans.
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