Nomura Sinks to Crisis-Level Valuation as Bad News Keeps Coming

(Bloomberg) -- The relentless slide in shares of Nomura Holdings Ltd. is headed for unprecedented territory.

Japan’s largest brokerage sank toward its lowest close since 2012 on Wednesday, sending the firm’s valuation to 0.43 times net assets. That’s within a hair’s breadth of an all-time low set during the European debt crisis in 2011 and leaves Nomura trading at a record discount versus global financial shares, according to data compiled by Bloomberg.

Nomura’s stock has dropped 17% this year as the firm reported its first annual loss in a decade and investors questioned whether Chief Executive Officer Koji Nagai can revive a business buffeted by volatile global capital markets and increased competition at home. The company’s prospects have only gotten worse in the past week after Japan’s financial regulator slapped it with a rare business improvement order for improperly sharing sensitive information. Several Nomura clients dropped the firm from bond deals after the revelation.

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