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TSE PBR-Reform Target

Source: Reproduces the target criteria implied by the Tokyo Stock Exchange's request on "management conscious of cost of capital and stock price" (2023)

PBR below 1x, combined with low ROE and a cash-rich balance sheet: exactly the profile the Tokyo Stock Exchange is pressuring to improve capital efficiency. These names are more likely to see catalysts such as dividend hikes, buybacks, or unwinding of cross-shareholdings — conditions activist investors also favor.

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Data comes from annual securities reports disclosed on EDINET (Japan FSA), via EDINET DB. Price-related values are as of each company's fiscal year-end (back-calculated from the disclosed trailing PER), not live quotes. Coverage: all TSE-listed companies, with names added progressively.

About the metrics used here

Net Cash Ratio (Negative Enterprise Value)

Net cash exceeds market cap (ratio of 1.0+) — in theory, you'd get change back after buying the whole company.

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