Honda Valuation
| HNDAF Stock | USD 11.74 0.55 4.92% |
At this time, the firm appears to be fairly valued. Honda Motor retains a regular Real Value of $11.54 per share. The prevalent price of the firm is $11.74. Our model calculates the value of Honda Motor from evaluating the firm fundamentals such as Return On Asset of 0.0252, current valuation of 70.72 B, and Return On Equity of 0.0726 as well as inspecting its technical indicators and probability of bankruptcy. In general, most investors encourage locking in undervalued assets and disposing overvalued assets since, at some point, asset prices and their ongoing real values will come together.
Fairly Valued
Today
Please note that Honda's price fluctuation is not too volatile at this time. Calculation of the real value of Honda Motor is based on 3 months time horizon. Increasing Honda's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Honda Motor Co is useful when determining the fair value of the Honda pink sheet, which is usually determined by what a typical buyer is willing to pay for full or partial control of Honda. Since Honda is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Honda Pink Sheet. However, Honda's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 11.74 | Real 11.54 | Hype 11.19 | Naive 10.89 |
The real value of Honda Pink Sheet, also known as its intrinsic value, is the underlying worth of Honda Motor Company, which is reflected in its stock price. It is based on Honda's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Honda's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Honda's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Honda Motor Co helps investors to forecast how Honda pink sheet's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Honda more accurately as focusing exclusively on Honda's fundamentals will not take into account other important factors: Honda Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Honda's current stock value. Our valuation model uses many indicators to compare Honda value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Honda competition to find correlations between indicators driving Honda's intrinsic value. More Info.Honda Motor Co is rated below average in price to earning category among related companies. It is rated below average in price to book category among related companies fabricating about 0.04 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Honda Motor Co is roughly 23.37 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Honda by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Honda's Pink Sheet. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Honda's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Honda's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Honda and how it compares across the competition.
About Honda Valuation
The pink sheet valuation mechanism determines the current worth of Honda Motor Co on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Honda Motor Co. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Honda Motor based exclusively on its fundamental and basic technical indicators. By analyzing Honda's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Honda's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Honda. We calculate exposure to Honda's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Honda's related companies.Honda Motor Co., Ltd. develops, manufactures, and distributes motorcycles, automobiles, power products, and other products in Japan, North America, Europe, Asia, and internationally. Honda Motor Co., Ltd. was founded in 1946 and is headquartered in Tokyo, Japan. Honda operates under Auto Manufacturers classification in the United States and is traded on OTC Exchange. It employs 204035 people.
8 Steps to conduct Honda's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Honda's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Honda's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Honda's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Honda's revenue streams: Identify Honda's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Honda's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Honda's growth potential: Evaluate Honda's management, business model, and growth potential.
- Determine Honda's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Honda's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Honda represents a small ownership stake in the entity. As a stockholder of Honda, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Honda Dividends Analysis For Valuation
Please note that Honda has scaled down on payment of dividends at this time.
There are various types of dividends Honda can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Honda shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Honda Motor Co directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Honda pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Honda by the value of the dividends paid out.
Honda Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Honda does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 1.7 B | |
| Quarterly Earnings Growth Y O Y | 0.285 | |
| Forward Price Earnings | 6.2972 | |
| Retained Earnings | 9.5 T |
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Honda Motor Co. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation. Note that the Honda Motor information on this page should be used as a complementary analysis to other Honda's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Complementary Tools for Honda Pink Sheet analysis
When running Honda's price analysis, check to measure Honda's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Honda is operating at the current time. Most of Honda's value examination focuses on studying past and present price action to predict the probability of Honda's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Honda's price. Additionally, you may evaluate how the addition of Honda to your portfolios can decrease your overall portfolio volatility.
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