Honda Motor Co., Ltd.

TSE:7267 Stock Report

Market Cap: JP¥6.3t

Honda Motor Valuation

Is 7267 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 7267 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 7267 (¥1351.5) is trading below our estimate of fair value (¥2251.82)

Significantly Below Fair Value: 7267 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 7267?

Key metric: As 7267 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 7267. This is calculated by dividing 7267's market cap by their current earnings.
What is 7267's PE Ratio?
PE Ratio6.4x
EarningsJP¥985.56b
Market CapJP¥6.27t

Price to Earnings Ratio vs Peers

How does 7267's PE Ratio compare to its peers?

The above table shows the PE ratio for 7267 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average8.2x
7269 Suzuki Motor
8.7x0.5%JP¥3.1t
7270 Subaru
4.6x-3.3%JP¥1.8t
7202 Isuzu Motors
9.1x5.7%JP¥1.4t
7201 Nissan Motor
10.5x23.3%JP¥1.6t
7267 Honda Motor
6.4x5.8%JP¥6.3t

Price-To-Earnings vs Peers: 7267 is good value based on its Price-To-Earnings Ratio (6.4x) compared to the peer average (8.2x).

Price to Earnings Ratio vs Industry

How does 7267's PE Ratio compare vs other companies in the Asian Auto Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
7267 6.4xIndustry Avg. 17.6xNo. of Companies11PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 7267 is good value based on its Price-To-Earnings Ratio (6.4x) compared to the Asian Auto industry average (17.8x).

Price to Earnings Ratio vs Fair Ratio

What is 7267'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.

7267 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.4x
Fair PE Ratio10.3x

Price-To-Earnings vs Fair Ratio: 7267 is good value based on its Price-To-Earnings Ratio (6.4x) compared to the estimated Fair Price-To-Earnings Ratio (10.3x).

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 7267 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥1,351.50
JP¥1,838.18
+36.0%
10.3%JP¥2,100.00JP¥1,400.00n/a16
Nov ’25JP¥1,524.00
JP¥1,869.43
+22.7%
11.0%JP¥2,200.00JP¥1,400.00n/a16
Oct ’25JP¥1,542.00
JP¥1,914.06
+24.1%
12.8%JP¥2,400.00JP¥1,400.00n/a16
Sep ’25JP¥1,588.00
JP¥1,939.06
+22.1%
13.9%JP¥2,400.00JP¥1,400.00n/a16
Aug ’25JP¥1,575.00
JP¥1,987.19
+26.2%
12.8%JP¥2,400.00JP¥1,400.00n/a16
Jul ’25JP¥1,760.50
JP¥1,980.10
+12.5%
14.3%JP¥2,400.00JP¥1,300.00n/a17
Jun ’25JP¥1,769.50
JP¥1,973.45
+11.5%
13.8%JP¥2,400.00JP¥1,300.00n/a17
May ’25JP¥1,787.50
JP¥1,969.33
+10.2%
13.3%JP¥2,400.00JP¥1,300.00n/a17
Apr ’25JP¥1,850.50
JP¥1,957.57
+5.8%
14.0%JP¥2,400.00JP¥1,200.00n/a17
Mar ’25JP¥1,805.50
JP¥1,842.86
+2.1%
12.6%JP¥2,100.00JP¥1,200.00n/a17
Feb ’25JP¥1,644.50
JP¥1,788.73
+8.8%
12.3%JP¥2,100.00JP¥1,200.00n/a17
Jan ’25JP¥1,466.00
JP¥1,812.25
+23.6%
14.5%JP¥2,400.00JP¥1,200.00n/a17
Dec ’24JP¥1,529.50
JP¥1,814.24
+18.6%
14.4%JP¥2,400.00JP¥1,200.00n/a17
Nov ’24JP¥1,568.50
JP¥1,796.41
+14.5%
14.3%JP¥2,400.00JP¥1,200.00JP¥1,524.0017
Oct ’24JP¥1,682.00
JP¥1,739.14
+3.4%
11.0%JP¥2,100.00JP¥1,300.00JP¥1,542.0017
Sep ’24JP¥1,573.33
JP¥1,684.24
+7.0%
10.0%JP¥2,050.00JP¥1,300.00JP¥1,588.0017
Aug ’24JP¥1,530.67
JP¥1,579.73
+3.2%
10.2%JP¥1,966.67JP¥1,300.00JP¥1,575.0017
Jul ’24JP¥1,447.00
JP¥1,522.92
+5.2%
12.2%JP¥1,966.67JP¥1,133.33JP¥1,760.5016
Jun ’24JP¥1,326.00
JP¥1,433.33
+8.1%
12.4%JP¥1,766.67JP¥1,133.33JP¥1,769.5016
May ’24JP¥1,207.00
JP¥1,381.25
+14.4%
12.7%JP¥1,766.67JP¥1,133.33JP¥1,787.5016
Apr ’24JP¥1,170.00
JP¥1,356.25
+15.9%
14.2%JP¥1,766.67JP¥1,033.33JP¥1,850.5016
Mar ’24JP¥1,193.00
JP¥1,331.25
+11.6%
14.5%JP¥1,766.67JP¥1,033.33JP¥1,805.5016
Feb ’24JP¥1,079.33
JP¥1,286.67
+19.2%
15.2%JP¥1,766.67JP¥1,033.33JP¥1,644.5015
Jan ’24JP¥1,010.67
JP¥1,337.50
+32.3%
14.2%JP¥1,766.67JP¥1,100.00JP¥1,466.0016
Dec ’23JP¥1,111.33
JP¥1,356.86
+22.1%
12.9%JP¥1,800.00JP¥1,100.00JP¥1,529.5017
Nov ’23JP¥1,133.33
JP¥1,373.15
+21.2%
12.1%JP¥1,800.00JP¥1,100.00JP¥1,568.5018

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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