Honda Enterprise Value vs Free Cash Flow Analysis
HMC Stock | USD 34.41 0.17 0.49% |
Honda financial indicator trend analysis is much more than just examining Honda Motor latest accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Honda Motor is a good investment. Please check the relationship between Honda Enterprise Value and its Free Cash Flow accounts. 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 population.
Enterprise Value vs Free Cash Flow
Enterprise Value vs Free Cash Flow Correlation Analysis
The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Honda Motor Enterprise Value account and Free Cash Flow. At this time, the significance of the direction appears to have strong relationship.
The correlation between Honda's Enterprise Value and Free Cash Flow is 0.73. Overlapping area represents the amount of variation of Enterprise Value that can explain the historical movement of Free Cash Flow in the same time period over historical financial statements of Honda Motor Co, assuming nothing else is changed. The correlation between historical values of Honda's Enterprise Value and Free Cash Flow is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Enterprise Value of Honda Motor Co are associated (or correlated) with its Free Cash Flow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Free Cash Flow has no effect on the direction of Enterprise Value i.e., Honda's Enterprise Value and Free Cash Flow go up and down completely randomly.
Correlation Coefficient | 0.73 |
Relationship Direction | Positive |
Relationship Strength | Significant |
Enterprise Value
Enterprise Value (or EV) is usually referred to as Honda theoretical takeover price. In the event of an acquisition, an acquirer would have to take on Honda Motor debt, but would also pocket its cash. Enterprise Value is more accurate representation of Honda value than its market capitalization because it takes into account all of Honda Motor Co existing debt. A measure of a company's total value, often used as a more comprehensive alternative to equity market capitalization that includes the market capitalization, plus total debt, minority interest and preferred shares, minus total cash and cash equivalents.Free Cash Flow
The amount of cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.Most indicators from Honda's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Honda Motor current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. 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 population. At present, Honda's Enterprise Value is projected to increase significantly based on the last few years of reporting.
2021 | 2022 | 2023 | 2024 (projected) | Gross Profit | 3.0T | 3.3T | 3.8T | 2.5T | Total Revenue | 14.6T | 16.9T | 19.4T | 20.4T |
Honda fundamental ratios Correlations
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Honda Account Relationship Matchups
High Positive Relationship
High Negative Relationship
Honda fundamental ratios Accounts
2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
Total Assets | 20.5T | 21.9T | 24.0T | 24.7T | 28.4T | 29.8T | |
Short Long Term Debt Total | 7.5T | 7.7T | 8.1T | 7.7T | 8.8T | 9.3T | |
Other Current Liab | 802.5B | 796.7B | 1.6T | 1.9T | 2.2T | 2.3T | |
Total Current Liabilities | 5.8T | 5.7T | 6.0T | 6.6T | 7.6T | 8.0T | |
Total Stockholder Equity | 8.0T | 9.1T | 10.5T | 11.2T | 12.9T | 13.6T | |
Property Plant And Equipment Net | 7.7T | 7.9T | 8.2T | 7.9T | 9.1T | 9.5T | |
Net Debt | 4.8T | 5.0T | 4.4T | 3.9T | 4.4T | 2.7T | |
Retained Earnings | 8.1T | 8.9T | 9.5T | 10.0T | 11.5T | 12.1T | |
Cash | 2.7T | 2.8T | 3.7T | 3.8T | 4.4T | 4.6T | |
Non Current Assets Total | 13.2T | 14.3T | 15.1T | 15.1T | 17.4T | 18.2T | |
Non Currrent Assets Other | 3.5T | 4.0T | 4.2T | 4.4T | 5.1T | 5.4T | |
Cash And Short Term Investments | 2.9T | 3.1T | 3.9T | 4.1T | 4.7T | 4.9T | |
Net Receivables | 2.5T | 2.6T | 2.6T | 3.0T | 3.4T | 1.7T | |
Common Stock Shares Outstanding | 5.3B | 5.2B | 5.2B | 5.1B | 5.9B | 6.1B | |
Liabilities And Stockholders Equity | 20.5T | 21.9T | 24.0T | 24.7T | 28.4T | 29.8T | |
Non Current Liabilities Total | 6.4T | 6.8T | 7.2T | 6.5T | 7.5T | 7.9T | |
Inventory | 1.6T | 1.5T | 1.9T | 2.2T | 2.5T | 2.6T | |
Other Current Assets | 365.8B | 383.7B | 439.3B | 384.5B | 442.2B | 340.6B | |
Other Stockholder Equity | (102.1B) | (101.7B) | (142.8B) | (299.3B) | (269.4B) | (255.9B) | |
Total Liab | 12.2T | 12.5T | 13.2T | 13.1T | 15.1T | 15.8T | |
Property Plant And Equipment Gross | 7.7T | 7.9T | 8.2T | 7.9T | 9.1T | 9.5T | |
Total Current Assets | 7.3T | 7.6T | 8.8T | 9.6T | 11.0T | 11.6T | |
Accumulated Other Comprehensive Income | (114.6B) | 196.7B | 990.4B | 1.4T | 1.6T | 1.7T | |
Short Term Debt | 3.2T | 3.0T | 3.1T | 3.3T | 3.8T | 4.0T | |
Accounts Payable | 958.5B | 1.1T | 1.2T | 1.4T | 1.6T | 939.1B | |
Other Liab | 1.7T | 1.9T | 1.8T | 1.9T | 2.2T | 2.3T | |
Other Assets | 969.4B | 442.3B | 516.2B | 560.1B | 644.2B | 676.4B | |
Long Term Debt | 4.5T | 4.7T | 5.0T | 4.4T | 5.0T | 5.3T | |
Property Plant Equipment | 3.1T | 3.0T | 3.1T | 7.9T | 9.1T | 9.5T | |
Current Deferred Revenue | 764.3B | 49.7B | 780.7B | 825.1B | 948.8B | 996.2B | |
Treasury Stock | (113.3B) | (177.8B) | (273.9B) | (273.8B) | (246.4B) | (234.1B) | |
Short Term Investments | 190.1B | 295.3B | 217.7B | 263.9B | 303.5B | 318.6B | |
Intangible Assets | 760.4B | 818.8B | 849.5B | 870.9B | 1.0T | 1.1T | |
Net Tangible Assets | 8.1T | 7.9T | 8.3T | 9.6T | 11.1T | 7.5T | |
Deferred Long Term Liab | 611.8B | 627.2B | 671.4B | 693.6B | 797.7B | 610.7B | |
Long Term Investments | 1.1T | 1.5T | 1.8T | 1.8T | 2.0T | 1.1T | |
Short Long Term Debt | 3.2T | 3.0T | 3.1T | 3.3T | 3.8T | 3.0T |
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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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Is Honda's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Honda. If investors know Honda will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Honda listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.081 | Dividend Share 49 | Earnings Share 3.7 | Revenue Per Share 11.8 K | Quarterly Revenue Growth 0.214 |
The market value of Honda Motor is measured differently than its book value, which is the value of Honda that is recorded on the company's balance sheet. Investors also form their own opinion of Honda's value that differs from its market value or its book value, called intrinsic value, which is Honda's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Honda's market value can be influenced by many factors that don't directly affect Honda's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Honda's value and its price as these two are different measures arrived at by different means. Investors typically determine if Honda is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Honda's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.