Honda Motor Co., Ltd.

OTCPK:HNDA.F Stock Report

Market Cap: US$39.8b

Honda Motor Valuation

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

Below Fair Value: HNDA.F ($8.77) is trading below our estimate of fair value ($13.2)

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


Key Valuation Metric

Which metric is best to use when looking at relative valuation for HNDA.F?

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

The above table shows the Price to Earnings ratio for HNDA.F. This is calculated by dividing HNDA.F's market cap by their current earnings.
What is HNDA.F's PE Ratio?
PE Ratio6.1x
EarningsJP¥985.56b
Market CapJP¥5.97t

Price to Earnings Ratio vs Peers

How does HNDA.F's PE Ratio compare to its peers?

The above table shows the PE ratio for HNDA.F vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.9x
F Ford Motor
11.8x19.7%US$41.5b
GM General Motors
5.3x-9.9%US$58.7b
RACE Ferrari
54.3x9.6%US$79.8b
LI Li Auto
15.9x24.7%US$22.5b
HNDA.F Honda Motor
6.1x5.3%US$6.0t

Price-To-Earnings vs Peers: HNDA.F is good value based on its Price-To-Earnings Ratio (6.1x) compared to the peer average (21.9x).


Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
HNDA.F 6.1xIndustry Avg. 15.6xNo. of Companies14PE01224364860+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HNDA.F is good value based on its Price-To-Earnings Ratio (6.1x) compared to the Global Auto industry average (15.6x).


Price to Earnings Ratio vs Fair Ratio

What is HNDA.F'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.

HNDA.F PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.1x
Fair PE Ratio16.9x

Price-To-Earnings vs Fair Ratio: HNDA.F is good value based on its Price-To-Earnings Ratio (6.1x) compared to the estimated Fair Price-To-Earnings Ratio (16.9x).


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 HNDA.F forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$8.77
US$11.83
+34.9%
14.5%US$14.00US$9.34n/a16
Nov ’25US$10.25
US$12.28
+19.8%
11.0%US$14.45US$9.20n/a16
Oct ’25US$11.09
US$13.22
+19.2%
12.8%US$16.58US$9.67n/a16
Sep ’25US$10.95
US$13.26
+21.1%
13.9%US$16.42US$9.58n/a16
Aug ’25US$10.50
US$12.63
+20.3%
12.8%US$15.25US$8.90n/a16
Jul ’25US$10.98
US$12.40
+13.0%
14.3%US$15.03US$8.14n/a17
Jun ’25US$11.76
US$12.58
+7.0%
13.8%US$15.30US$8.29n/a17
May ’25US$11.74
US$12.87
+9.7%
13.3%US$15.69US$8.50n/a17
Apr ’25US$11.38
US$12.91
+13.5%
14.0%US$15.83US$7.92n/a17
Mar ’25US$11.86
US$12.25
+3.3%
12.6%US$13.95US$7.97n/a17
Feb ’25US$10.96
US$12.08
+10.2%
12.3%US$14.18US$8.10n/a17
Jan ’25US$10.01
US$12.74
+27.3%
14.5%US$16.87US$8.44n/a17
Dec ’24US$10.50
US$12.24
+16.6%
14.4%US$16.19US$8.09US$8.5917
Nov ’24US$10.00
US$11.99
+19.9%
14.3%US$16.01US$8.01US$10.2517
Oct ’24US$11.37
US$11.64
+2.4%
11.0%US$14.05US$8.70US$11.0917
Sep ’24US$10.15
US$11.51
+13.5%
10.0%US$14.01US$8.89US$10.9517
Aug ’24US$10.28
US$11.21
+9.0%
10.2%US$13.95US$9.22US$10.5017
Jul ’24US$10.24
US$10.58
+3.3%
12.2%US$13.66US$7.87US$10.9816
Jun ’24US$9.55
US$10.29
+7.7%
12.4%US$12.68US$8.13US$11.7616
May ’24n/a
US$10.30
0%
12.7%US$13.18US$8.45US$11.7416
Apr ’24n/a
US$10.06
0%
14.2%US$13.10US$7.66US$11.3816
Mar ’24US$8.76
US$9.77
+11.6%
14.5%US$12.97US$7.58US$11.8616
Feb ’24US$8.25
US$9.89
+19.9%
15.2%US$13.58US$7.94US$10.9615
Jan ’24US$7.63
US$10.19
+33.5%
14.2%US$13.46US$8.38US$10.0116
Dec ’23US$7.90
US$9.77
+23.6%
12.9%US$12.95US$7.92US$10.5017

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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