Independent Leading Corporate Governance Research

Metrical Inc

METRICAL INC. is an independent leading Corporate Governance research firm in Japan where Corporate Governance is increasingly recognized as an important element on corporate management in these days. Thus, CG research and solutions would become an essential component of global capital markets and play important to contribute to transparency of the markets and maximize shareholders’ value in Japan. 

METRICAL INC. provides Corporate Governance research and analysis including rating services, and  also offers investment research and IR services with solutions and customized profound research on CG and IR issues.

Shareholder Proposals Likely a Focus at 2024 AGM Are ROE, P/B, and Parent-Subsidiary Listings

Golden Egg Was Not Lost, but How Long Can Keisei Electric Railway Buy Time?

Keisei Electric Railway's Problems Are Part of a Cross-Shareholding Dissolution Process

A Market with a Low Average ROE Favors Valuations for Companies with More Reliable Cash Flow

Increasing Pressure from Investors for Dissolution of Parent-Subsidiary (Inc. Affiliates) Listings

Is the Rise in TOPIX Anticipating the Actual Rise in ROE+DOE?

What Is A "Growth Market" Where Many Companies Do Not Grow in Market Cap or Raise Capital?

Isn't It Hypocritical to Request a P/B Raising Measure While Continuing the Listed Subsidiary IPO?

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>EPS and BPS had run in parallel since June 2022, but BPS has accelerated at a more rapid pace since May 2023, and TOPIX has risen sharply since April 2023.</li>
<li>Since TOPIX is more correlated with BPS than EPS, the hypothesis that "stock prices are more reliant on BPS increases, including cash increases, than on EPS" would be considered.</li>
<li>Investors may believe that Japanese management still needs more time to use cash effectively, and evaluate companies based on their BPS, which indicates a movement toward improved cash flow.</li>
</ul>


EPS and BPS had run in parallel since June 2022, but BPS has accelerated at a more rapid pace since May 2023, and TOPIX has risen sharply since April 2023.
Since TOPIX is more correlated with BPS than EPS, the hypothesis that "stock prices are more reliant on BPS increases, including cash increases, than on EPS" would be considered.
Investors may believe that Japanese management still needs more time to use cash effectively, and evaluate companies based on their BPS, which indicates a movement toward improved cash flow.


Investors Are Valuing Equities Thinking that Managers Are Still Slow to Put Cash to Good Use?

TSE Tokyo Price Index TOPIX

Investors Are Valuing Equities Thinking that Managers Are Still Slow to Put Cash to Good Use?