◆ What the Market Isn't Pricing In

Sumitomo Corporation (8053) — the variant view

Berkshire has quietly passed 10% of Sumitomo while the market still prices it as the house that lost money in 2021.

📈 8053 valuation, revenue & earnings — P/E, P/S, revenue, EPS →

Sumitomo trades at 13.90 times trailing earnings, the lowest of the five trading houses Berkshire Hathaway owns12345. Its forward multiple is 12.626, and the shares rose about 61% in the past year7.

Berkshire's Sumitomo stake, end-2025 ($ m)1,907Cost4,022Market value1022025 dividendsBerkshire Hathaway 2025 shareholder letter
Worth twice what Berkshire paid.

Berkshire's holding has grown. It crossed 5% of each of the five houses by August 20208, after first buying in July 20199. At the end of 2025 it held 9.7% of Sumitomo, which had cost $1,907 million and was worth $4,022 million, and had received $102 million of dividends in the year10: a market value 2.1 times its cost and a dividend yield of 5.3% on it11. In May 2026 its stake rose from 9.30% to 10.05%1213. Berkshire said in 2024 that the companies had agreed to moderately relax the 10% ceiling it had set14, and that its holdings are for the very long term15.

What may not be priced is the change in the portfolio. Mineral resources were about 19% of underlying profit in the latest year1617; the Ambatovy sale has been signed18; SCSK is wholly owned; and return on equity has been above 12% for two years19. The multiple still reflects a company that lost money in 2021.

The analysts' average target is ¥2,007.0520, against a price of ¥1,768.5021.

Ten analysts cover the shares, with an average rating of buy22. The price-to-book ratio is 1.7623, which is modest for a company earning a return on equity above 12%.

The measure is the multiple against Marubeni's. Moving from a discount to a premium would show the market recognising the change.

References
  1. ReportedSumitomo trades at 13.90 times trailing earnings, the lowest of the five trading houses Berkshire Hathaway owns.
    Sumitomo Corporation (TYO: 8053) market data - share price ¥1,768.50, market capitalisation 8.51T yen, trailing net income 619.05B yen, P/E 13.90, forward P/E 12.62, dividend ¥40.00 (2.26%), September 2026. — September 2026 · publ. 24 September 2026 · source ↗
  2. ReportedSumitomo trades at 13.90 times trailing earnings, the lowest of the five trading houses Berkshire Hathaway owns.
    Marubeni Corporation (TYO: 8002) market data - market capitalisation 8.09T yen, trailing net income 575.88B yen, P/E 14.19, September 2026. — September 2026 · publ. 24 September 2026 · source ↗
  3. ReportedSumitomo trades at 13.90 times trailing earnings, the lowest of the five trading houses Berkshire Hathaway owns.
    Mitsui & Co. (TYO: 8031) market data - market capitalisation 14.63T yen, trailing net income 936.38B yen, P/E 15.75, September 2026. — September 2026 · publ. 24 September 2026 · source ↗
  4. ReportedSumitomo trades at 13.90 times trailing earnings, the lowest of the five trading houses Berkshire Hathaway owns.
    ITOCHU Corporation (TYO: 8001) market data - market capitalisation 15.94T yen, trailing net income 910.11B yen, P/E 17.77, September 2026. — September 2026 · publ. 24 September 2026 · source ↗
  5. ReportedSumitomo trades at 13.90 times trailing earnings, the lowest of the five trading houses Berkshire Hathaway owns.
    Mitsubishi Corporation (TYO: 8058) market data - market capitalisation 17.62T yen, trailing net income 895.86B yen, P/E 20.12, September 2026. — September 2026 · publ. 24 September 2026 · source ↗
  6. ReportedIts forward multiple is 12.62, and the shares rose about 61% in the past year.
    Sumitomo Corporation (TYO: 8053) market data - share price ¥1,768.50, market capitalisation 8.51T yen, trailing net income 619.05B yen, P/E 13.90, forward P/E 12.62, dividend ¥40.00 (2.26%), September 2026. — September 2026 · publ. 24 September 2026 · source ↗
  7. ReportedIts forward multiple is 12.62, and the shares rose about 61% in the past year.
    Sumitomo Corporation (TYO: 8053) statistics - price-to-book 1.76, price-to-sales 1.13, 52-week price change +61.14%, analysts' target ¥2,007.05. — September 2026 · publ. September 2026 · source ↗
  8. ReportedIt crossed 5% of each of the five houses by August 2020, after first buying in July 2019.
    Berkshire Hathaway news release, 30 August 2020 - slightly more than 5% of each of five Japanese trading companies, acquired over about twelve months. — August 2020 · publ. 30 August 2020 · source ↗
  9. ReportedIt crossed 5% of each of the five houses by August 2020, after first buying in July 2019.
    Berkshire Hathaway 2024 shareholder letter - first purchases in July 2019, the 10% ceiling moderately relaxed, holdings for the very long term. — 2024 · publ. February 2025 · source ↗
  10. ReportedAt the end of 2025 it held 9.7% of Sumitomo, which had cost $1,907 million and was worth $4,022 million, and had received $102 million of dividends in the year: a market value 2.1 times its cost and a dividend yield of 5.3% on it.
    Berkshire Hathaway 2025 shareholder letter - Sumitomo Corporation at 9.7%, cost $1,907 million, market value $4,022 million, 2025 dividends $102 million, and yen borrowing at an average cost of 1.2%. — 2025 · publ. February 2026 · source ↗
  11. Moat Explorer calcAt the end of 2025 it held 9.7% of Sumitomo, which had cost $1,907 million and was worth $4,022 million, and had received $102 million of dividends in the year: a market value 2.1 times its cost and a dividend yield of 5.3% on it.
    Moat Explorer calculation from Sumitomo Corporation's reported figures. Per-share figures divided by four for the 1 July 2026 split: EPS 499.09 / 4 = 124.77, 463.66 / 4 = 115.92; DPS 150 / 4 = 37.5. Trailing twelve months to June 2026: profit 600.3 - 170.9 + 190.1 = 619.5; revenue 7,337.3 - 1,787.9 + 1,949.4 = 7,498.8; EPS 124.77 - 35.29 + 39.95 = 129.43. Market value at March year-ends (close x shares issued, including treasury shares): 1,118.5 x 1,250.6m = ¥1,399bn (2016), 5,780 x 1,211.4m = ¥7,002bn (2026); P/E 1,399 / 74.5 = 18.8 and 7,002 / 600.3 = 11.7. Trailing P/E 8.51 trillion / 619.5 billion = 13.7; P/S 8.51 / 7.4988 = 1.13. Revenue by region, year to March 2026: Japan 2,840,605 / 7,337,259 = 38.7%; United States 1,391,341 / 7,337,259 = 19.0%. Equity-method profit over profit before tax: 266.7 / 702.0 = 38%. Mineral share of underlying profit: 99 / 524 = 19%. Profit growth over two years: 600.3 / 386.4 = 1.55. Profit against the plan target: 630.0 / 650.0 = 97%. Lifestyle and corporate band: 14.1 - 4.5 = 9.6 (2025) and -3.6 + 33.5 = 29.9 (2026). Largest four segments, year to March 2026: 102.4 + 88.9 + 82.3 + 81.5 = 355.1, 59% of 600.3. Berkshire market value over cost: 4,022 / 1,907 = 2.1 times; dividends on cost 102 / 1,907 = 5.3%. SCSK premium: 5,700 / 4,359 - 1 = 30.8%. Share count since 2013: 1,195.1m pre-split equivalent against 1,250.6m = -4.4%. Buyback: 47.65m shares against 4,780.5m issued = 1.0%. Q1 progress: 190.1 / 630.0 = 30%. Segment return on assets, year to March 2026: Energy Transformation 102.4 / 1,977.8 = 5.2%; Steel 74.3 / 1,199.5 = 6.2%; Automotive 63.2 / 861.7 = 7.3%; Transportation & Construction Systems 88.9 / 1,874.9 = 4.7%; Diverse Urban Development 81.5 / 1,792.9 = 4.5%; Media & Digital 51.2 / 1,492.7 = 3.4%; Mineral Resources 82.3 / 2,463.7 = 3.3%; Chemical Solutions 26.5 / 942.7 = 2.8%. Dividend per share, split-adjusted: 70 / 4 = 17.5 (2021) to 150 / 4 = 37.5 (2026) and 40 forecast; 37.5 / 17.5 = 2.1 times. Commercial Aviation underlying: 38.7 / 19.7 = 1.96 times. Eight growth areas: 382.7 / 279.9 - 1 = 36.7%. Low-ROIC capital: ¥3.0 bn / ¥1 trillion = 0.3%. Commercial Aviation forecast increase: 38.7 - 19.7 = 19.0; 19.0 / 330 = 5.8%. SCSK charge against comprehensive income: 722.7 / 1,029.6 = 70%. SCSK price rise: (5,700 - 5,050) x 154.7m = ¥100.6bn. Construction systems margin: 18.8 / 718.3 = 2.6%. Planned investment raised from 1.8 to 3.0 trillion = +67%. Low-return plus asset-turnover capital: (1.0 + 0.7) / 9.44 = 18%. Eight growth areas forecast increase: 382.7 - 305.0 = 77.7, against 15.0 added in the latest year. Forecast dividends over forecast profit: 191.0 / 630.0 = 30.3%. Value against the big three: 8.51 / 17.62 = 0.48, 8.51 / 14.63 = 0.58; their value over Sumitomo's 1.72-2.07; profit 619.05 / 936.38 = 0.66 and 619.05 / 895.86 = 0.69. Low-ROIC capital against total invested capital: 1.0 / 9.44 = 10.6%. — FY to March 2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Sumitomo Corporation's results, presentations, annual financial report and market data; operands shown in the source line.
  12. ReportedIn May 2026 its stake rose from 9.30% to 10.05%.
    Yahoo Finance - Berkshire Hathaway raised its stake in Sumitomo Corp. to 10.05% as of May 7, up from 9.30% in March. — May 2026 · publ. May 2026 · source ↗
  13. ReportedIn May 2026 its stake rose from 9.30% to 10.05%.
    Hedge Fund Alpha - Berkshire Hathaway raised its Sumitomo stake from 9.30% to 10.05%, 119.8 million shares, and now owns more than 10% of all five trading houses. — May 2026 · publ. May 2026 · source ↗
  14. ReportedBerkshire said in 2024 that the companies had agreed to moderately relax the 10% ceiling it had set, and that its holdings are for the very long term.
    Berkshire Hathaway 2024 shareholder letter - first purchases in July 2019, the 10% ceiling moderately relaxed, holdings for the very long term. — 2024 · publ. February 2025 · source ↗
  15. ReportedBerkshire said in 2024 that the companies had agreed to moderately relax the 10% ceiling it had set, and that its holdings are for the very long term.
    Berkshire Hathaway 2024 shareholder letter - first purchases in July 2019, the 10% ceiling moderately relaxed, holdings for the very long term. — 2024 · publ. February 2025 · source ↗
  16. ReportedMineral resources were about 19% of underlying profit in the latest year; the Ambatovy sale has been signed; SCSK is wholly owned; and return on equity has been above 12% for two years.
    Sumitomo Corporation, results presentation for the year to March 2026 - SCSK, Net One Systems, JCOM, Jupiter Shop Channel and Safaricom Ethiopia. — FY to March 2026 · publ. May 2026 · source ↗
  17. Moat Explorer calcMineral resources were about 19% of underlying profit in the latest year; the Ambatovy sale has been signed; SCSK is wholly owned; and return on equity has been above 12% for two years.
    Moat Explorer calculation from Sumitomo Corporation's reported figures. Per-share figures divided by four for the 1 July 2026 split: EPS 499.09 / 4 = 124.77, 463.66 / 4 = 115.92; DPS 150 / 4 = 37.5. Trailing twelve months to June 2026: profit 600.3 - 170.9 + 190.1 = 619.5; revenue 7,337.3 - 1,787.9 + 1,949.4 = 7,498.8; EPS 124.77 - 35.29 + 39.95 = 129.43. Market value at March year-ends (close x shares issued, including treasury shares): 1,118.5 x 1,250.6m = ¥1,399bn (2016), 5,780 x 1,211.4m = ¥7,002bn (2026); P/E 1,399 / 74.5 = 18.8 and 7,002 / 600.3 = 11.7. Trailing P/E 8.51 trillion / 619.5 billion = 13.7; P/S 8.51 / 7.4988 = 1.13. Revenue by region, year to March 2026: Japan 2,840,605 / 7,337,259 = 38.7%; United States 1,391,341 / 7,337,259 = 19.0%. Equity-method profit over profit before tax: 266.7 / 702.0 = 38%. Mineral share of underlying profit: 99 / 524 = 19%. Profit growth over two years: 600.3 / 386.4 = 1.55. Profit against the plan target: 630.0 / 650.0 = 97%. Lifestyle and corporate band: 14.1 - 4.5 = 9.6 (2025) and -3.6 + 33.5 = 29.9 (2026). Largest four segments, year to March 2026: 102.4 + 88.9 + 82.3 + 81.5 = 355.1, 59% of 600.3. Berkshire market value over cost: 4,022 / 1,907 = 2.1 times; dividends on cost 102 / 1,907 = 5.3%. SCSK premium: 5,700 / 4,359 - 1 = 30.8%. Share count since 2013: 1,195.1m pre-split equivalent against 1,250.6m = -4.4%. Buyback: 47.65m shares against 4,780.5m issued = 1.0%. Q1 progress: 190.1 / 630.0 = 30%. Segment return on assets, year to March 2026: Energy Transformation 102.4 / 1,977.8 = 5.2%; Steel 74.3 / 1,199.5 = 6.2%; Automotive 63.2 / 861.7 = 7.3%; Transportation & Construction Systems 88.9 / 1,874.9 = 4.7%; Diverse Urban Development 81.5 / 1,792.9 = 4.5%; Media & Digital 51.2 / 1,492.7 = 3.4%; Mineral Resources 82.3 / 2,463.7 = 3.3%; Chemical Solutions 26.5 / 942.7 = 2.8%. Dividend per share, split-adjusted: 70 / 4 = 17.5 (2021) to 150 / 4 = 37.5 (2026) and 40 forecast; 37.5 / 17.5 = 2.1 times. Commercial Aviation underlying: 38.7 / 19.7 = 1.96 times. Eight growth areas: 382.7 / 279.9 - 1 = 36.7%. Low-ROIC capital: ¥3.0 bn / ¥1 trillion = 0.3%. Commercial Aviation forecast increase: 38.7 - 19.7 = 19.0; 19.0 / 330 = 5.8%. SCSK charge against comprehensive income: 722.7 / 1,029.6 = 70%. SCSK price rise: (5,700 - 5,050) x 154.7m = ¥100.6bn. Construction systems margin: 18.8 / 718.3 = 2.6%. Planned investment raised from 1.8 to 3.0 trillion = +67%. Low-return plus asset-turnover capital: (1.0 + 0.7) / 9.44 = 18%. Eight growth areas forecast increase: 382.7 - 305.0 = 77.7, against 15.0 added in the latest year. Forecast dividends over forecast profit: 191.0 / 630.0 = 30.3%. Value against the big three: 8.51 / 17.62 = 0.48, 8.51 / 14.63 = 0.58; their value over Sumitomo's 1.72-2.07; profit 619.05 / 936.38 = 0.66 and 619.05 / 895.86 = 0.69. Low-ROIC capital against total invested capital: 1.0 / 9.44 = 10.6%. — FY to March 2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Sumitomo Corporation's results, presentations, annual financial report and market data; operands shown in the source line.
  18. ReportedMineral resources were about 19% of underlying profit in the latest year; the Ambatovy sale has been signed; SCSK is wholly owned; and return on equity has been above 12% for two years.
    Sumitomo Corporation, results presentation for the year to March 2026 - SCSK, Net One Systems, JCOM, Jupiter Shop Channel and Safaricom Ethiopia. — FY to March 2026 · publ. May 2026 · source ↗
  19. ReportedMineral resources were about 19% of underlying profit in the latest year; the Ambatovy sale has been signed; SCSK is wholly owned; and return on equity has been above 12% for two years.
    Sumitomo Corporation, Consolidated Financial Results for the year ended March 31, 2026 (IFRS) - results, segment profit, the financial position, dividends, the share split and the forecast for the year to March 2027. — FY to March 2026 · publ. May 2026 · source ↗
  20. ReportedThe analysts' average target is ¥2,007.05, against a price of ¥1,768.50.
    Sumitomo Corporation (TYO: 8053) statistics - price-to-book 1.76, price-to-sales 1.13, 52-week price change +61.14%, analysts' target ¥2,007.05. — September 2026 · publ. September 2026 · source ↗
  21. ReportedThe analysts' average target is ¥2,007.05, against a price of ¥1,768.50.
    Sumitomo Corporation (TYO: 8053) market data - share price ¥1,768.50, market capitalisation 8.51T yen, trailing net income 619.05B yen, P/E 13.90, forward P/E 12.62, dividend ¥40.00 (2.26%), September 2026. — September 2026 · publ. 24 September 2026 · source ↗
  22. ReportedTen analysts cover the shares, with an average rating of buy.
    Sumitomo Corporation (TYO: 8053) statistics - price-to-book 1.76, price-to-sales 1.13, 52-week price change +61.14%, analysts' target ¥2,007.05. — September 2026 · publ. September 2026 · source ↗
  23. ReportedThe price-to-book ratio is 1.76, which is modest for a company earning a return on equity above 12%.
    Sumitomo Corporation (TYO: 8053) statistics - price-to-book 1.76, price-to-sales 1.13, 52-week price change +61.14%, analysts' target ¥2,007.05. — September 2026 · publ. September 2026 · source ↗
Sources
Generated September 24, 2026