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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: 7.99 USD -0.87% Market Closed
Market Cap: $38.5B

EV/IC

0.3
Current
31%
Cheaper
vs 3-y average of 0.4

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
0.3
=
Enterprise Value
$11.4T
/
Invested Capital
¥26.2T

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
0.3
=
Enterprise Value
$11.4T
/
Invested Capital
¥26.2T

Valuation Scenarios

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

If EV/IC returns to its 3-Year Average (0.4), the stock would be worth $11.57 (45% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+234%
Average Upside
95%
Scenario EV/IC Value Implied Price Upside/Downside
Current Multiple 0.3 $7.99
0%
3-Year Average 0.4 $11.57
+45%
5-Year Average 0.4 $10.97
+37%
Industry Average 0.5 $13.17
+65%
Country Average 1 $26.66
+234%

Forward EV/IC
Today’s price vs future invested capital

Not enough data available to calculate forward EV/IC

Peer Comparison

All Multiples
EV/IC
P/E
All Countries
Close

Market Distribution

Lower than 100% of companies in Japan
Percentile
0th
Based on 5 142 companies
0th percentile
0
Low
0 — 0.7
Typical Range
0.7 — 1.5
High
1.5 —
Distribution Statistics
Japan
Min 0
30th Percentile 0.7
Median 1
70th Percentile 1.5
Max 23 050 349

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 53%
Intrinsic Value
Price $7.99
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