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Honda Motor Co Ltd
OTC:HNDAF

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Honda Motor Co Ltd
OTC:HNDAF
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Price: 8.42 USD 0.24%
Market Cap: $40.6B

EV/EBIT

11.6
Current
33%
More Expensive
vs 3-y average of 8.7

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.

EV/EBIT
11.6
=
Enterprise Value
$11.4T
/
EBIT
¥665.1B

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.

EV/EBIT
11.6
=
Enterprise Value
$11.4T
/
EBIT
¥665.1B

Valuation Scenarios

Honda Motor Co Ltd is trading above its 3-year average

If EV/EBIT returns to its 3-Year Average (8.7), the stock would be worth $6.32 (25% downside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-29%
Maximum Upside
+17%
Average Downside
7%
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%
Industry Average 12.6 $9.11
+8%
Country Average 13.6 $9.88
+17%

Forward EV/EBIT
Today’s price vs future ebit

Not enough data available to calculate forward EV/EBIT

Peer Comparison

All Multiples
EV/EBIT
P/E
All Countries
Close
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
EV/EBIT Multiple
EBIT Growth EV/EBIT to Growth
JP
Honda Motor Co Ltd
OTC:HNDAF
Average EV/EBIT: 42.5
11.6
N/A N/A
US
Tesla Inc
NASDAQ:TSLA
282.4
39%
7.2
JP
Toyota Motor Corp
TSE:7203
11.4
N/A N/A
CN
BYD Co Ltd
SZSE:002594
28.4
17%
1.7
KR
Hyundai Motor Co
KRX:005380
22.3
13%
1.7
DE
Mercedes Benz Group AG
MIL:MBG
6.1
3%
2
DE
Daimler AG
XETRA:DAI
5.4
N/A N/A
US
General Motors Co
NYSE:GM
54.4
83%
0.7
IT
Ferrari NV
MIL:RACE
28.4
8%
3.5
DE
Bayerische Motoren Werke AG
XETRA:BMW
10.9
10%
1.1
DE
Volkswagen AG
XETRA:VOW
6.5
15%
0.4

Market Distribution

Lower than 100% of companies in Japan
Percentile
0th
Based on 4 801 companies
0th percentile
0.1
Low
0.1 — 9.8
Typical Range
9.8 — 18.1
High
18.1 —
Distribution Statistics
Japan
Min 0.1
30th Percentile 9.8
Median 13.6
70th Percentile 18.1
Max 414 821 439

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.

HNDAF Intrinsic Value
17.06 USD
Undervaluation 51%
Intrinsic Value
Price $8.42
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