Honda Valuation
| HMC Stock | USD 26.67 0.01 0.04% |
At this time, the firm appears to be undervalued. Honda Motor retains a regular Real Value of $30.62 per share. The prevalent price of the firm is $26.67. Our model calculates the value of Honda Motor from evaluating the firm fundamentals such as Return On Asset of 0.0313, current valuation of 33.48 B, and Return On Equity of 0.0833 as well as inspecting its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Honda's valuation include:
Price Book 0.5131 | Enterprise Value 33.5 B | Enterprise Value Ebitda 2.1904 | Price Sales 0.0019 | Forward PE 5.8514 |
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 26.67 | Real 30.62 | Target 37.55 | Hype 26.73 | Naive 26.46 |
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: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Honda's intrinsic value based on its ongoing forecasts of Honda's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Honda's closest peers. If more than one evaluation category is relevant for Honda we suggest using both methods to arrive at a better estimate.
Honda Cash |
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Honda Valuation Trend
Comparing Honda's enterprise value against its market capitalization is a good way to estimate the value of Honda Motor Co uage its performance over time. This information may sometimes be enough for investors to make reasonable market timing decisions.
Honda Total Value Analysis
Honda Motor Co is currently expected to have company total value of 33.48 B with market capitalization of 41.23 B, debt of 10.5 T, and cash on hands of 3.8 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 |
33.48 B | 41.23 B | 10.5 T | 3.8 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 27th of September 2024. 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 December.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.0624 | 0.0676 |
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| Total Cash From Operating Activities | 847.8 B | 747.3 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 68.61 percent. This indicates that the Company is making $0.69 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 Ownership Allocation
Honda Motor Co has a total of 1.55 Billion outstanding shares. Roughly 95.34 (percent) of Honda outstanding shares are held by general public with 4.66 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 20.43 T. Total Income to common stockholders was 1.11 T with profit before taxes, overhead, and interest of 2.98 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 | 4.3 T | 2.5 T | |
| Pretax Profit Margin | 0.07 | 0.05 | |
| Operating Profit Margin | 0.07 | 0.06 | |
| Net Profit Margin | 0.05 | 0.03 | |
| Gross Profit Margin | 0.21 | 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
At present, Honda's Dividend Paid And Capex Coverage Ratio is projected to increase slightly based on the last few years of reporting. . At present, Honda's Earnings Yield is projected to increase slightly based on the last few years of reporting. The current year's Price Earnings To Growth Ratio is expected to grow to 0.11, whereas Price Earnings Ratio is forecasted to decline to 7.78.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 241.9 B | 254 B | |
| Dividend Yield | 0.03 | 0.01 | |
| Dividend Payout Ratio | 0.22 | 0.20 | |
| Dividend Paid And Capex Coverage Ratio | 0.88 | 1.10 |
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 | -0.592 | |
| Forward Price Earnings | 5.8514 |
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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