HMC Valuation

Honda Motor Co Ltd

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33.780

-0.34(-0.996%)1D

Overview
Forecast
Valuation
Earnings

HMC Relative Valuation

HMC's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, HMC is overvalued; if below, it's undervalued.

Historical Valuation

Honda Motor Co Ltd (HMC) is now in the Undervalued zone, suggesting that its current forward PE ratio of 8.78 is considered Undervalued compared with the five-year average of 6.94. The fair price of Honda Motor Co Ltd (HMC) is between 83.13 to 98.02 according to relative valuation methord. Compared to the current price of 34.12 USD , Honda Motor Co Ltd is Undervalued By 58.96%.

Relative Value

Fair Zone

83.13-98.02

Current Price：34.12

58.96%

Undervalued

8.69

Trailing

Forward

9.69

EV/EBITDA

Honda Motor Co Ltd. (HMC) has a current EV/EBITDA of 9.69. The 5-year average EV/EBITDA is 7.46. The thresholds are as follows: Strongly Undervalued below 4.82, Undervalued between 4.82 and 6.14, Fairly Valued between 8.78 and 6.14, Overvalued between 8.78 and 10.10, and Strongly Overvalued above 10.10. The current Forward EV/EBITDA of 9.69 falls within the Overvalued range.

16.03

EV/EBIT

Honda Motor Co Ltd. (HMC) has a current EV/EBIT of 16.03. The 5-year average EV/EBIT is 10.86. The thresholds are as follows: Strongly Undervalued below 6.50, Undervalued between 6.50 and 8.68, Fairly Valued between 13.05 and 8.68, Overvalued between 13.05 and 15.23, and Strongly Overvalued above 15.23. The current Forward EV/EBIT of 16.03 falls within the Strongly Overvalued range.

0.30

Honda Motor Co Ltd. (HMC) has a current PS of 0.30. The 5-year average PS is 0.34. The thresholds are as follows: Strongly Undervalued below 0.26, Undervalued between 0.26 and 0.30, Fairly Valued between 0.38 and 0.30, Overvalued between 0.38 and 0.42, and Strongly Overvalued above 0.42. The current Forward PS of 0.30 falls within the Undervalued range.

4.14

P/OCF

Honda Motor Co Ltd. (HMC) has a current P/OCF of 4.14. The 5-year average P/OCF is 5.17. The thresholds are as follows: Strongly Undervalued below 2.42, Undervalued between 2.42 and 3.80, Fairly Valued between 6.55 and 3.80, Overvalued between 6.55 and 7.93, and Strongly Overvalued above 7.93. The current Forward P/OCF of 4.14 falls within the Historic Trend Line -Fairly Valued range.

6.39

P/FCF

Honda Motor Co Ltd. (HMC) has a current P/FCF of 6.39. The 5-year average P/FCF is 13.73. The thresholds are as follows: Strongly Undervalued below -20.08, Undervalued between -20.08 and -3.17, Fairly Valued between 30.64 and -3.17, Overvalued between 30.64 and 47.54, and Strongly Overvalued above 47.54. The current Forward P/FCF of 6.39 falls within the Historic Trend Line -Fairly Valued range.

Honda Motor Co Ltd (HMC) has a current Price-to-Book (P/B) ratio of 1.73. Compared to its 3-year average P/B ratio of 0.69 , the current P/B ratio is approximately 152.42% higher. Relative to its 5-year average P/B ratio of 0.65, the current P/B ratio is about 165.76% higher. Honda Motor Co Ltd (HMC) has a Forward Free Cash Flow (FCF) yield of approximately -0.64%. Compared to its 3-year average FCF yield of 12.22%, the current FCF yield is approximately -105.22% lower. Relative to its 5-year average FCF yield of 14.27% , the current FCF yield is about -104.47% lower.

1.72

P/B

Median3y

0.69

Median5y

0.65

-0.64

FCF Yield

Median3y

12.22

Median5y

14.27

Competitors Valuation Multiple

The average P/S ratio for HMC's competitors is 4.71, providing a benchmark for relative valuation. Honda Motor Co Ltd Corp (HMC) exhibits a P/S ratio of 0.30, which is -93.62% above the industry average. Given its robust revenue growth of 6.47%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of HMC increased by 6.46% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 23.79 to 35.11.

The secondary factor is the Revenue Growth, contributed 6.47%to the performance.

Overall, the performance of HMC in the past 1 year is driven by P/E Change. Which is more unsustainable.

6.47%

34.68B → 36.92B

Revenue Growth

-47.59%

7.67 → 4.02

Margin Expansion

47.58%

23.79 → 35.11

P/E Change

6.46%