Market bullishness for Mitsubishi Heavy rivals Google and Microsoft

Forward P/E ratio hits 28 as energy and defense fuel growth expectations

Mitsubishi Heavy Industries' gas turbine business and defense contracting business are expected to add greatly to profits. (Source photos by Mitsubishi Heavy Industries and Nikkei)

KENTARO TSUTSUMI, Nikkei staff writer

January 7, 2025 08:24 JST

TOKYO -- The growth outlook of Mitsubishi Heavy Industries has placed the Japanese manufacturer on par with large U.S. tech groups in terms of a key market metric.

Mitsubishi Heavy's forward price-to-earnings ratio is projected in the 28 range for the current fiscal year, according to QUICK-FactSet data current as of the end of December. The number would be up from its five-year average P/E ratio of just over 21.