Goldman Sachs selects “Seven Samurai'' to represent Japanese stocks

9 months ago 52

Japanese version “Magnificent 7”

With the Nikkei Stock Average reaching its highest post-bubble price in 34 years, it was reported that major investment bank Goldman Sachs has selected the “Seven Samurai” to represent the Japanese stock market. Ta. This suggests high expectations for the Japanese stock market.

The Seven Samurai are the Japanese version of the Magnificent 7, which are seven representative brands in the United States. In response to the rapid growth in global demand for AI (artificial intelligence) such as ChatGPT, multiple semiconductor-related stocks have been selected, consisting of stocks from seven companies: SCREEN Holdings, Advantest, DISCO, Tokyo Electron, Toyota, SUBARU, and Mitsubishi Corporation. be done.

The selection of stocks is tentative, but according to reports, stocks will be selected based on their high liquidity, not having an operating deficit or final deficit since 2020, and their stock price performance being among the top in the year-to-date and past 12 months. There is a condition.

In addition, the main criteria for joining the Magnificent Seven (NVIDIA, Google, Apple, Amazon, Facebook, Microsoft, Tesla) in the United States include items such as market capitalization ranking, growth potential, and cash flow. However, for “Seven Samurai,” the focus seems to be on increasing profit margins and PER ratios rather than increasing sales.

PER stands for price-to-earnings ratio, and is one of the typical stock price indicators used to judge whether a stock price is overvalued or undervalued. Generally, a P/E ratio of 15 times is considered appropriate for a listed company; anything less than 15 times is considered undervalued, and a P/E ratio of 15 times or more is considered overvalued. For example, Japan's Advantest has a PER of 37.69 times, while US Nvidia's PER is about 400 times.

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