A recent report on Japan from Bain & Company, a
consultancy, states: "By aligning growth, profitability and level
of capital efficiencies to the average of global corporations, it
is possible to dramatically expand Japanese companies' value - and
break out of the economic slump." The report estimates that by
raising current average sales growth to 5 per cent from 2 per cent,
margins on earnings before interest and tax to 7 per cent from 4.5
per cent and improving the level of capital efficiencies by 10 per
cent, Japan's stock market capitalisation could increase more than
threefold. In other words, the stock market could return to levels
seen during the bubble economy - only without the bubble.
