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Some of Japan's electrical corporations have remarkably low market capitalizations:
General Electric has 1.6 x more sales than Hitachi, but has 13.3 x the market capitalization. Philips has 1/3 x Hitachi's sales, but has 2.2 times higher market cap.
Low market values do not help big recent public share offerings:
Hitachi raising YEN 250.7 Billion (US$ 2.8 Billion), Toshiba raising YEN 298.7 Billion (US$ 3.3 Billion), and NEC raising YEN 115.5 Billion (US$ 1.3 Billion).
Low valuations increase the pressure for change in Japan's electrical sector, and the
SANYO-Panasonic merger is an indication of changes to come.
In the "post-Galapagos committee" we are working with some of Japan's brightest leaders on understanding the reasons and on how to drive this change.
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Philips= 1/3 x Hitachi's sales and 2.2 x Hitachi's market cap
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Benchmarking electrical companies:
Currently the large Japanese electrical conglomerates have substantially lower market capitalization than global leaders such as GE and Philips.
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GE= 1.6 x Hitachi's sales and 13.3 x Hitachi's market cap
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 Pressure for change:
Low market valuations make it difficult to raise capital for new ventures or acquisitions, and make companies vulnerable to take-overs.
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