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Honda Motor Co Ltd
TSE:7267

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Honda Motor Co Ltd
TSE:7267
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Price: 1 296.5 JPY -1.18% Market Closed
Market Cap: ¥4.4T

EV/OCF

9.4
Current
41%
Cheaper
vs 3-y average of 15.8

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
9.4
=
Enterprise Value
¥11.4T
/
Operating Cash Flow
¥816.6B

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
9.4
=
Enterprise Value
¥11.4T
/
Operating Cash Flow
¥816.6B

Valuation Scenarios

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

If EV/OCF returns to its 3-Year Average (15.8), the stock would be worth ¥2 183.79 (68% upside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-21%
Maximum Upside
+68%
Average Upside
15%
Scenario EV/OCF Value Implied Price Upside/Downside
Current Multiple 9.4 ¥1 296.5
0%
3-Year Average 15.8 ¥2 183.79
+68%
5-Year Average 7.5 ¥1 029.51
-21%
Industry Average 8.6 ¥1 183.66
-9%
Country Average 11.4 ¥1 571.59
+21%

Forward EV/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward EV/OCF

Peer Comparison

All Multiples
EV/OCF
P/E
All Countries
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Market Distribution

In line with most companies in Japan
Percentile
38th
Based on 4 586 companies
38th percentile
9.4
Low
0 — 8.2
Typical Range
8.2 — 16.2
High
16.2 —
Distribution Statistics
Japan
Min 0
30th Percentile 8.2
Median 11.4
70th Percentile 16.2
Max 277 515 327.6

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.

Intrinsic Value
2 875.86 JPY
Undervaluation 55%
Intrinsic Value
Price ¥1 296.5
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