Update shared on02 Sep 2025
Fair value Increased 1.05%Honda Motor's consensus future P/E has risen modestly, reflecting slight multiple expansion despite stable revenue growth forecasts, resulting in a marginal increase in the analyst price target from ¥1654 to ¥1672.
What's in the News
- Honda entered a multi-year partnership with Helm.ai to accelerate next-generation self-driving capabilities, focusing on ADAS for consumer cars by leveraging AI and generative simulation; large-scale deployment of an E2E AI system is targeted for mass production after 2027.
- Honda collaborated with Greater Than in an R&D alliance to use AI-driven analysis of anonymized driving data to quantify and reduce crash risk in Japan by identifying factors influencing accident-prone areas.
- Honda revised its FY2026 guidance upward, now projecting sales revenue of JPY 21.1 trillion, operating profit of JPY 700 billion, net profit of JPY 490 billion, and EPS of JPY 105.07, citing tariff impact analysis and updated FX assumptions.
- Honda completed the repurchase of 553,628,000 shares (12.31% of shares outstanding) for JPY 792.99 billion under its share buyback program.
Valuation Changes
Summary of Valuation Changes for Honda Motor
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from ¥1654 to ¥1672.
- The Consensus Revenue Growth forecasts for Honda Motor has fallen slightly from 1.1% per annum to 1.1% per annum.
- The Future P/E for Honda Motor has risen slightly from 8.46x to 8.79x.
Disclaimer
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