Historical Valuation
Honda Motor Co Ltd (HMC) is now in the Undervalued zone, suggesting that its current forward PE ratio of 11.34 is considered Undervalued compared with the five-year average of 6.87. The fair price of Honda Motor Co Ltd (HMC) is between 58.00 to 69.64 according to relative valuation methord. Compared to the current price of 30.64 USD , Honda Motor Co Ltd is Undervalued By 47.18%.
Relative Value
Fair Zone
58.00-69.64
Current Price：30.64
47.18%
Undervalued
P/E
EV/EBITDA
EV/EBIT
P/S
P/OCF
P/FCF
1Y
3Y
5Y
Trailing
Forward
Honda Motor Co Ltd (HMC) has a current Price-to-Book (P/B) ratio of 0.51. Compared to its 3-year average P/B ratio of 0.71 , the current P/B ratio is approximately -28.61% higher. Relative to its 5-year average P/B ratio of 0.66, the current P/B ratio is about -23.02% higher. Honda Motor Co Ltd (HMC) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 8.19%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 13.43% , the current FCF yield is about -100.00% lower.
P/B
Median3y
0.71
Median5y
0.66
FCF Yield
Median3y
8.19
Median5y
13.43
Competitors Valuation Multiple
AI Analysis for HMC
The average P/S ratio for HMC competitors is 3.59, providing a benchmark for relative valuation. Honda Motor Co Ltd Corp (HMC.N) exhibits a P/S ratio of , which is -100% above the industry average. Given its robust revenue growth of -0.75%, this premium appears unsustainable.
Performance Decomposition
AI Analysis for HMC
1Y
3Y
5Y
Market capitalization of HMC increased by 0.00% over the past 1 year. The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.
The secondary factor is the Unknown, contributed 0.00%to the performance.
Overall, the performance of HMC in the past 1 year is driven by Unknown.
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Frequently Asked Questions
Is HMC currently overvalued or undervalued?
Honda Motor Co Ltd (HMC) is now in the Undervalued zone, suggesting that its current forward PE ratio of 11.34 is considered Undervalued compared with the five-year average of 6.87. The fair price of Honda Motor Co Ltd (HMC) is between 58.00 to 69.64 according to relative valuation methord. Compared to the current price of 30.64 USD , Honda Motor Co Ltd is Undervalued By 47.18% .
What is Honda Motor Co Ltd (HMC) fair value?
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. The fair price of Honda Motor Co Ltd (HMC) is between 58.00 to 69.64 according to relative valuation methord.
How does HMC's valuation metrics compare to the industry average?
The average P/S ratio for HMC's competitors is 3.59, providing a benchmark for relative valuation. Honda Motor Co Ltd Corp (HMC) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of -0.75%, this premium appears unsustainable.
What is the current P/B ratio for Honda Motor Co Ltd (HMC) as of Jan 10 2026?
As of Jan 10 2026, Honda Motor Co Ltd (HMC) has a P/B ratio of 0.51. This indicates that the market values HMC at 0.51 times its book value.
What is the current FCF Yield for Honda Motor Co Ltd (HMC) as of Jan 10 2026?
As of Jan 10 2026, Honda Motor Co Ltd (HMC) has a FCF Yield of 0.00%. This means that for every dollar of Honda Motor Co Ltd’s market capitalization, the company generates 0.00 cents in free cash flow.
What is the current Forward P/E ratio for Honda Motor Co Ltd (HMC) as of Jan 10 2026?
As of Jan 10 2026, Honda Motor Co Ltd (HMC) has a Forward P/E ratio of 11.34. This means the market is willing to pay $11.34 for every dollar of Honda Motor Co Ltd’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Honda Motor Co Ltd (HMC) as of Jan 10 2026?
As of Jan 10 2026, Honda Motor Co Ltd (HMC) has a Forward P/S ratio of 0.00. This means the market is valuing HMC at $0.00 for every dollar of expected revenue over the next 12 months.