Honda Atlas Cars (Pakistan)

KASE:HCAR Stock Report

Mkt Cap: PK₨25.1b

We’ve recently updated our valuation analysis.

Honda Atlas Cars (Pakistan) Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

HCAR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.08x
Enterprise Value/EBITDA2x
PEG Ratio0.5x

Price to Earnings Ratio vs Peers

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

HCAR PE Ratio vs Peers
The above table shows the PE ratio for HCAR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average6.7x
PSMC Pak Suzuki Motor
9.9x46.9%PK₨14.5b
GHNI Ghandhara Industries
3.9xn/aPK₨6.1b
INDU Indus Motor
4.8x3.8%PK₨75.4b
GHNL Ghandhara Nissan
8.4xn/aPK₨3.2b
HCAR Honda Atlas Cars (Pakistan)
10x21.8%PK₨25.1b

Price-To-Earnings vs Peers: HCAR is expensive based on its Price-To-Earnings Ratio (10x) compared to the peer average (6.7x).


Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: HCAR is good value based on its Price-To-Earnings Ratio (10x) compared to the Asian Auto industry average (17x)


Price to Earnings Ratio vs Fair Ratio

What is HCAR'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.

HCAR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10x
Fair PE Ratio8.3x

Price-To-Earnings vs Fair Ratio: HCAR is expensive based on its Price-To-Earnings Ratio (10x) compared to the estimated Fair Price-To-Earnings Ratio (8.3x).


Share Price vs Fair Value

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

Below Fair Value: HCAR (PKR175.6) is trading above our estimate of fair value (PKR39.92)

Significantly Below Fair Value: HCAR is trading above our estimate of fair value.


Analyst Price Targets

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

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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