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.

Criticism of Shareholder Proposals from Activist Investors Is a Comforting Word for Management

Is TSE List Effective? Companies Need to Demonstrate Momentum in Raising Their Capital Profitability

Both Bond Investors and Stock Investors Are Focused on Future Cash Flows that a Company Will Produce

Companies Still Prioritize Compliance with the TSE over Consideration for Shareholders Interest

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>The P/B ratio, which rose alongside the stock price increase, climbed to 1.4 in October 2025, but this merely matched the level seen from February 2024 to May 2024.</li>
<li>Despite stagnant actual EPS, BPS and ROE, rising stock prices pull up P/E and P/B. Correlation with P/B suggests that appealing to expectations of stock prices—over actual numbers—is more effective.</li>
<li>Whether current valuations are reasonable or if there is further upside potential depends on changes in future expectations and how these are factored into actual results.</li>
</ul>


The P/B ratio, which rose alongside the stock price increase, climbed to 1.4 in October 2025, but this merely matched the level seen from February 2024 to May 2024.
Despite stagnant actual EPS, BPS and ROE, rising stock prices pull up P/E and P/B. Correlation with P/B suggests that appealing to expectations of stock prices—over actual numbers—is more effective.
Whether current valuations are reasonable or if there is further upside potential depends on changes in future expectations and how these are factored into actual results.


Stock Prices Driven by Expectations Require Support from Actual Corporate Performance

TSE Tokyo Price Index TOPIX

Stock Prices Driven by Expectations Require Support from Actual Corporate Performance