The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2026-07-11), Nippon Building Fund's share price is 円129800.00.
Nippon Building Fund's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2025 was 円4,999.75. Therefore, Nippon Building Fund's PE Ratio for today is 25.96.
During the past 13 years, Nippon Building Fund's highest PE Ratio was 41.77. The lowest was 20.06. And the median was 28.74.
During the past 12 months, Nippon Building Fund's average EPS without NRIGrowth Rate was -7.60% per year.
During the past 3 years, the average EPS without NRIGrowth Rate was -2.40% per year.
During the past 5 years, the average EPS without NRIGrowth Rate was 1.30% per year.
During the past 10 years, the average EPS without NRIGrowth Rate was 4.90% per year.
During the past 13 years, Nippon Building Fund's highest 3-Year average EPS without NRI Growth Rate was 23.20% per year. The lowest was -16.20% per year. And the median was 3.05% per year.
Nippon Building Fund's EPS (Basic) for the
six
months ended in Dec. 2025 was 円2,231.26.
Its EPS (Basic) for the trailing twelve months (TTM) ended in Dec. 2025 was 円4,999.75.
Back to Basics: PE Ratio
Nippon Building Fund (TSE:8951) PE Ratio Explanation
The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.
In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.
If a company loses money, the PE Ratio becomes meaningless.
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.
Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.
Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratios are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio.
PE Ratio can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio.
Nippon Building Fund PE Ratio Related Terms
Nippon Building Fund PE Ratio Historical Data
* Premium members only.
The historical data trend for Nippon Building Fund's PE Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the REIT - Office subindustry, Nippon Building Fund's PE Ratio, along with its competitors' market caps and PE Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Nippon Building Fund PE Ratio vs REITs Industry
For the REITs industry and Real Estate sector, Nippon Building Fund's PE Ratio distribution charts can be found below:
* The bar in red indicates where Nippon Building Fund's PE Ratio falls into.
The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.
Nippon Building Fund's Share Price of today is 円129800.00.
For company reported semi-annually, Nippon Building Fund's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was 円4,999.75.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
It can also be calculated from the numbers for the whole company:
There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio, Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.
In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.
For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.
Nippon Building Fund (TSE:8951) has a PE Ratio of 25.96 as of Jul. 11, 2026. P/E ratio is the ratio of share price to a company's earnings per share. View historical data on Nippon Building Fund and its competitors. This is 10% below median its historical median of 28.74. Over the past decade, Nippon Building Fund's PE Ratio has ranged from 20.06 to 41.77.
Is Nippon Building Fund's PE Ratio too high?
Nippon Building Fund's current PE Ratio of 25.96 is 10% below median its 10-year median of 28.74. Over the past 10 years, this metric has ranged from a low of 20.06 to a high of 41.77. Overall, Nippon Building Fund has a GF Score™ of 56/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Building Fund's PE Ratio compare to BXP and ARE?
Nippon Building Fund's PE Ratio of 25.96 can be compared against companies in the REITs industry. Historically, Nippon Building Fund's own PE Ratio has ranged from 20.06 to 41.77 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good PE Ratio for a REITs company?
A good PE Ratio depends on the REITs industry context. However, PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high PE Ratio mean?
A high PE Ratio can signal that a stock is expensive relative to its fundamentals. P/E ratio is the ratio of share price to a company's earnings per share. View historical data on Nippon Building Fund and its competitors. Nippon Building Fund's current PE Ratio is 25.96, which is 10% below median its own 10-year median of 28.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Building Fund stock overvalued right now?
Based on GuruFocus' analysis, Nippon Building Fund (TSE:8951) is currently considered Modestly Overvalued. The stock's GF Value™ is 円108,203.35, compared to a current price of 円129,800.00 — trading 20% above its estimated fair value. The current PE Ratio is 25.96, which is 10% below median its 10-year median of 28.74. Nippon Building Fund's overall GF Score™ is 56/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PE Ratio calculated?
PE Ratio is calculated from a company's financial statements. For Nippon Building Fund (TSE:8951), the current PE Ratio is 25.96 as of Jul. 11, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Nippon Building Fund (TSE:8951) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Building Fund stock appears to be overvalued.
The current stock price of 円129,800.00 is trading 20% above its estimated GF Value™ of 円108,203.35.
GuruFocus considers Nippon Building Fund to be Modestly Overvalued.
Key valuation signals for TSE:8951:
PE Ratio: 25.96 (10% below median its 10-year median of 28.74)
GF Value™: 円108,203.35 vs. price of 円129,800.00 (20% above fair value)
No single metric tells the full story. See the TSE:8951 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Building Fund Inc is a Japanese real estate investment trust engaged in the acquisition, ownership, and leasing of properties in the Greater Tokyo area. The company's real estate portfolio comprises of large corporate office buildings. The majority of these are located in the five wards of Tokyo's central business district. Office space located throughout the rest of Tokyo also makes up a substantial percentage of Nippon Building Fund's assets. The company derives the majority of its income in the form of rental revenue from tenants. Nippon Building Fund's customers are firms from the service, electrical equipment, and information and communications industries in terms of square footage used.
56GF Score
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