Honda Valuation
| HMC Stock | USD 32.40 1.19 3.81% |
At this time, the firm appears to be undervalued. Honda Motor retains a regular Real Value of $33.73 per share. The prevalent price of the firm is $32.4. Our model calculates the value of Honda Motor from evaluating the firm fundamentals such as Current Valuation of 39.32 B, return on asset of 0.0129, and Return On Equity of 0.043 as well as inspecting its technical indicators and probability of bankruptcy.
Price Book 0.5109 | Enterprise Value | Enterprise Value Ebitda 3.4847 | Price Sales 0.0019 | Forward PE 10.582 |
Undervalued
Today
Please note that Honda's price fluctuation is very steady at this time. Calculation of the real value of Honda Motor is based on 3 months time horizon. Increasing Honda's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Honda is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Honda Stock. However, Honda's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 32.4 | Real 33.73 | Target 35.95 | Hype 32.36 |
The real value of Honda Stock, also known as its intrinsic value, is the underlying worth of Honda Motor Company, which is reflected in its stock price. It is based on Honda's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Honda's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of Honda Motor Co helps investors to forecast how Honda stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Honda more accurately as focusing exclusively on Honda's fundamentals will not take into account other important factors: Honda Cash |
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Honda Total Value Analysis
Honda Motor Co is currently expected to have company total value of 39.32 B with market capitalization of 40.56 B, debt of 4.42 T, and cash on hands of 4.53 T. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Honda fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
39.32 B | 40.56 B | 4.42 T | 4.53 T |
Honda Investor Information
The company has price-to-book (P/B) ratio of 0.51. Some equities with similar Price to Book (P/B) outperform the market in the long run. Honda Motor last dividend was issued on the 29th of September 2025. The entity had 4:1 split on the 10th of January 2002. Based on the key measurements obtained from Honda's financial statements, Honda Motor Co is doing better financially today then in previous quarter. It has a moderate probability of reporting better financial numbers in March.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.062 | 0.0643 |
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| Total Cash From Operating Activities | 319.2 B | 336 B |
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| Operating Income | 1.5 T | 1.4 T |
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Honda Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Honda has an asset utilization ratio of 70.47 percent. This indicates that the Company is making $0.7 for each dollar of assets. An increasing asset utilization means that Honda Motor Co is more efficient with each dollar of assets it utilizes for everyday operations.Honda Profitability Analysis
Based on the key profitability measurements obtained from Honda's financial statements, Honda's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Honda's ability to earn profits and add value for shareholders.Net Income | First Reported 1985-06-30 | Previous Quarter 115.2 B | Current Value 153.6 B | Quarterly Volatility 92.7 B |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.31 | 0.25 |
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| Net Profit Margin | 0.0306 | 0.0347 |
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| Operating Profit Margin | 0.062 | 0.0643 |
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| Pretax Profit Margin | 0.0482 | 0.0547 |
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| Return On Assets | 0.0407 | 0.0312 |
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| Return On Equity | 0.11 | 0.078 |
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For Honda profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Honda Motor to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Honda utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Honda's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Honda over time as well as its relative position and ranking within its peers.
Honda Earnings per Share Projection vs Actual
The next projected EPS of Honda is estimated to be 0.947825 with future projections ranging from a low of 0.947825 to a high of 0.947825. Honda's most recent 12-month trailing earnings per share (EPS TTM) is at 2.38. Please be aware that the consensus of earnings estimates for Honda Motor Co is based on EPS before non-recurring items and includes expenses related to employee stock options.Honda Earnings Estimation Breakdown
The calculation of Honda's earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of Honda is estimated to be 0.947825 with the future projection ranging from a low of 0.947825 to a high of 0.947825. Please be aware that this consensus of annual earnings estimates for Honda Motor Co is based on EPS before non-recurring items and includes expenses related to employee stock options.Last Reported EPS
0.95 Lowest | Expected EPS | 0.95 Highest |
Honda Earnings Projection Consensus
Suppose the current estimates of Honda's value are higher than the current market price of the Honda stock. In this case, investors may conclude that Honda is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and Honda's stock will quickly adjusts to the new information provided by the consensus estimate.
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 31st of March 2027 | Current EPS (TTM) | |
| 2 | 50.34% | 0.0 | 0.947825 | 2.38 |
Honda Ownership Allocation
Honda Motor Co has a total of 1.3 Billion outstanding shares. Roughly 95.66 (percent) of Honda outstanding shares are held by general public with 4.34 pct. by outside corporations. Please note that no matter how many assets the company holds, if the real value of the firm is less than the current market value, you may not be able to make money on it.Honda Profitability Analysis
The company reported the last year's revenue of 21.69 T. Total Income to common stockholders was 1.32 T with profit before taxes, overhead, and interest of 4.37 T.Honda Past Distributions to stockholders
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Honda's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Honda and how it compares across the competition.
About Honda Valuation
The stock valuation mechanism determines Honda's current worth on a weekly basis. Our valuation model uses a comparative analysis of Honda. We calculate exposure to Honda's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Honda's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 5.4 T | 5.6 T | |
| Pretax Profit Margin | 0.05 | 0.05 | |
| Operating Profit Margin | 0.06 | 0.06 | |
| Net Profit Margin | 0.03 | 0.03 | |
| Gross Profit Margin | 0.25 | 0.31 |
Honda Quarterly Retained Earnings |
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A single share of Honda represents a small ownership stake in the entity. As a stockholder of Honda, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Honda Dividends Analysis For Valuation
The current year's Dividend Yield is expected to grow to 0.05, whereas Dividends Paid is projected to grow to (380 B). . At present, Honda's Earnings Yield is projected to increase slightly based on the last few years of reporting.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -400 B | -380 B | |
| Dividend Yield | 0.05 | 0.05 | |
| Dividend Payout Ratio | 0.37 | 0.21 | |
| Dividend Paid And Capex Coverage Ratio | 0.39 | 0.37 |
There are various types of dividends Honda can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Honda shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Honda Motor Co directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Honda pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Honda by the value of the dividends paid out.
Honda Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 1.6 B | |
| Quarterly Earnings Growth Y O Y | -0.412 | |
| Forward Price Earnings | 10.582 |
Honda Current Valuation Indicators
Valuation refers to the process of determining the present value of Honda Motor Co and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Honda we look at many different elements of the entity such as Honda's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Honda, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Honda's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Honda's worth.Complementary Tools for Honda Stock analysis
When running Honda's price analysis, check to measure Honda's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Honda is operating at the current time. Most of Honda's value examination focuses on studying past and present price action to predict the probability of Honda's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Honda's price. Additionally, you may evaluate how the addition of Honda to your portfolios can decrease your overall portfolio volatility.
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