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.

Return Targets and Use of Cash Should Be Disclosed Together with Cost of Capital

Alignment of Management and Shareholder Interests Could Be the Beginning of Happiness

Companies Are Finally at the Starting Line of Taking the First Steps to Improve ROE

Amid Slow ROE Improvement, Calls for Stronger Shareholder Returns Will Become Even Stronger

Now Is the Time to Seek Ingenuity in Cash Allocation, Not Lament the Decline in Equity Financing

Companies Should Show a Path to Accelerated Profit Growth Rather than Shareholder Returns

Expanding Nominal Profits from Shift from Deflation Rather than P/B Is the Driver of Stock Prices

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>If a company with P/B less than 1 conducts share buyback, its P/B will decrease; if a company with P/B greater than 1 conducts share buyback, its P/B will increase.</li>
<li>A company with P/B below 1x can be a great value stock if it can demonstrate to investors that it will generate ample cash flow, in addition to repurchasing shares.</li>
<li>Even if a company's P/B is well above 1x, it is required to explain to investors whether there are any gaps in its cash flow growth scenario.</li>
</ul>


If a company with P/B less than 1 conducts share buyback, its P/B will decrease; if a company with P/B greater than 1 conducts share buyback, its P/B will increase.
A company with P/B below 1x can be a great value stock if it can demonstrate to investors that it will generate ample cash flow, in addition to repurchasing shares.
Even if a company's P/B is well above 1x, it is required to explain to investors whether there are any gaps in its cash flow growth scenario.


It Is Time to Identify True Value and Growth Stocks Rather than High and Low P/Bs

TSE Tokyo Price Index TOPIX

It Is Time to Identify True Value and Growth Stocks Rather than High and Low P/Bs