Honda Motor Co., Ltd.

DB:HDM Stock Report

Market Cap: €36.2b

Honda Motor Valuation

Is HDM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of HDM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HDM (€8.59) is trading below our estimate of fair value (€11.51)

Significantly Below Fair Value: HDM is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HDM?

Key metric: As HDM is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for HDM. This is calculated by dividing HDM's market cap by their current earnings.
What is HDM's PE Ratio?
PE Ratio6x
EarningsJP¥985.56b
Market CapJP¥5.92t

Price to Earnings Ratio vs Peers

How does HDM's PE Ratio compare to its peers?

The above table shows the PE ratio for HDM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average6.8x
VOW3 Volkswagen
3.6x9.7%€44.3b
BMW Bayerische Motoren Werke
5.9x3.3%€47.9b
P911 Dr. Ing. h.c. F. Porsche
13.3x11.3%€52.8b
MBG Mercedes-Benz Group
4.6x1.0%€50.1b
HDM Honda Motor
6x4.6%€5.9t

Price-To-Earnings vs Peers: HDM is good value based on its Price-To-Earnings Ratio (6x) compared to the peer average (6.8x).

Price to Earnings Ratio vs Industry

How does HDM's PE Ratio compare vs other companies in the Global Auto Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
HDM 6.0xIndustry Avg. 15.2xNo. of Companies15PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HDM is good value based on its Price-To-Earnings Ratio (6x) compared to the Global Auto industry average (15.2x).

Price to Earnings Ratio vs Fair Ratio

What is HDM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HDM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6x
Fair PE Ratio7.9x

Price-To-Earnings vs Fair Ratio: HDM is good value based on its Price-To-Earnings Ratio (6x) compared to the estimated Fair Price-To-Earnings Ratio (7.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst HDM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€8.59
€10.74
+25.0%
14.8%€12.87€7.97n/a16
Dec ’25€8.04
€11.14
+38.5%
10.3%€12.72€8.48n/a16
Nov ’25€9.15
€11.37
+24.3%
11.0%€13.39€8.52n/a16
Oct ’25€9.52
€11.88
+24.8%
12.8%€14.90€8.69n/a16
Sep ’25€9.78
€12.00
+22.7%
13.9%€14.85€8.66n/a16
Aug ’25€9.62
€11.59
+20.5%
12.8%€14.00€8.17n/a16
Jul ’25€10.08
€11.55
+14.7%
14.3%€14.00€7.58n/a17
Jun ’25€10.25
€11.62
+13.4%
13.8%€14.13€7.65n/a17
May ’25€10.69
€11.98
+12.1%
13.3%€14.60€7.91n/a17
Apr ’25€11.29
€11.92
+5.7%
14.0%€14.62€7.31n/a17
Mar ’25€11.00
€11.29
+2.6%
12.6%€12.87€7.35n/a17
Feb ’25€10.43
€11.13
+6.7%
12.3%€13.06€7.47n/a17
Jan ’25€9.25
€11.69
+26.3%
14.5%€15.48€7.74n/a17
Dec ’24€9.68
€11.24
+16.2%
14.4%€14.87€7.44€8.0417
Nov ’24€9.69
€11.32
+16.8%
14.3%€15.12€7.56€9.1517
Oct ’24€10.65
€11.01
+3.4%
11.0%€13.29€8.23€9.5217
Sep ’24€9.86
€10.54
+6.9%
10.0%€12.83€8.14€9.7817
Aug ’24€9.67
€10.14
+4.9%
10.2%€12.62€8.34€9.6217
Jul ’24€9.10
€9.65
+6.0%
12.2%€12.46€7.18€10.0816
Jun ’24€8.80
€9.62
+9.4%
12.4%€11.86€7.61€10.2516
May ’24€7.95
€9.39
+18.1%
12.7%€12.01€7.70€10.6916
Apr ’24€7.99
€9.45
+18.3%
14.2%€12.31€7.20€11.2916
Mar ’24€8.16
€9.21
+12.8%
14.5%€12.22€7.15€11.0016
Feb ’24€7.56
€9.09
+20.4%
15.2%€12.49€7.30€10.4315
Jan ’24€7.10
€9.52
+34.0%
14.2%€12.57€7.83€9.2516
Dec ’23€7.88
€9.45
+19.9%
12.9%€12.54€7.66€9.6817

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/23 01:32
End of Day Share Price 2024/12/23 00:00
Earnings2024/09/30
Annual Earnings2024/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Honda Motor Co., Ltd. is covered by 52 analysts. 16 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Toshiro YoshinagaAizawa Securities Co. Ltd.
Ronald TadrossBanc of America Securities
Ishan MajumdarBaptista Research