Honda Motor Co Ltd
OTC:HNDAF
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EV/EBIT
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBIT returns to its 3-Year Average (8.7), the stock would be worth $6.32 (25% downside from current price).
| Scenario | EV/EBIT Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 11.6 | $8.42 |
0%
|
| 3-Year Average | 8.7 | $6.32 |
-25%
|
| 5-Year Average | 8.3 | $6.01 |
-29%
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| Industry Average | 12.6 | $9.11 |
+8%
|
| Country Average | 13.6 | $9.88 |
+17%
|
Forward EV/EBIT
Today’s price vs future ebit
Peer Comparison
| Market Cap | EV/EBIT | P/E | ||||
|---|---|---|---|---|---|---|
| JP |
|
Honda Motor Co Ltd
OTC:HNDAF
|
4.5T USD | 11.6 | 14 | |
| US |
|
Tesla Inc
NASDAQ:TSLA
|
1.5T USD | 282.4 | 370.7 | |
| JP |
|
Toyota Motor Corp
TSE:7203
|
40.7T JPY | 11.4 | 11 | |
| CN |
|
BYD Co Ltd
SZSE:002594
|
926.5B CNY | 28.4 | 28.5 | |
| KR |
|
Hyundai Motor Co
KRX:005380
|
142.1T KRW | 22.3 | 14.8 | |
| DE |
|
Mercedes Benz Group AG
MIL:MBG
|
75.3B EUR | 6.1 | 4.9 | |
| DE |
|
Daimler AG
XETRA:DAI
|
67.5B EUR | 5.4 | 3.7 | |
| US |
|
General Motors Co
NYSE:GM
|
71.4B USD | 54.4 | 22.3 | |
| IT |
|
Ferrari NV
MIL:RACE
|
59.7B EUR | 28.4 | 37 | |
| DE |
|
Bayerische Motoren Werke AG
XETRA:BMW
|
49.2B EUR | 10.9 | 6.7 | |
| DE |
|
Volkswagen AG
XETRA:VOW
|
45.5B EUR | 6.5 | 6.8 |
Market Distribution
| Min | 0.1 |
| 30th Percentile | 9.8 |
| Median | 13.6 |
| 70th Percentile | 18.1 |
| Max | 414 821 439 |
Other Multiples
Honda Motor Co Ltd
Glance View
Honda Motor Co., Ltd., a marvel of post-war industrial resurgence, embarked on its journey in a small workshop in Hamamatsu, Japan. The brainchild of Soichiro Honda, the company initially found its claim to fame through innovative, economical motorbikes, spearheading the production of low-cost transportation in an era when the world desperately needed mobility solutions. Over time, Honda's pioneering spirit expanded its product lineup beyond two-wheelers to include automobiles, power equipment, and the development of cutting-edge robotics and aeronautics. This diversification didn't simply reflect ambition but was a calculated strategy to harness its engineering prowess and market it across various dimensions of motorized transportation and beyond. At the heart of Honda's operations is its mastery over engine technology. By excelling in high-performance, fuel-efficient engines, Honda not only captures a broad consumer base seeking reliability and value in vehicles and motorcycles but also extends its reach into other segments such as power equipment and marine engines. The company ingeniously balances its operations through a geographical footprint that spans the globe, tapping into diverse markets while maintaining a keen focus on quality and innovation. By maintaining a strong research and development wing, Honda ensures it remains at the forefront of technological advancements, edging out competition by staying relevant with evolving customer preferences and regulatory landscapes centered around sustainability and efficiency. This multi-faceted approach, underscored by engineering excellence, provides the company with a steady revenue stream and a resilient business model.