Honda Enterprise Value vs Invested Capital Analysis

HMC Stock

USD 34.45 0.26 0.75%

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 Invested Capital 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 Invested Capital

Enterprise Value vs Invested Capital 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 Invested Capital. At this time, the significance of the direction appears to have weak contrarian relationship.

The correlation between Honda's Enterprise Value and Invested Capital is -0.05. Overlapping area represents the amount of variation of Enterprise Value that can explain the historical movement of Invested Capital 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 Invested Capital 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 Invested Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Invested Capital has no effect on the direction of Enterprise Value i.e., Honda's Enterprise Value and Invested Capital go up and down completely randomly.

Correlation Coefficient

-0.05

Relationship Direction	Negative
Relationship Strength	Insignificant

View All Relationships

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.

Invested Capital

Invested capital represents the total cash investment that shareholders and debt holders have contributed to Honda Motor Co. There are two different methods for calculating Honda Motor invested capital: operating approach and financing approach. Understanding Honda invested capital allows investors to calculate measures of performance such as return on invested capital or return on capital employed.

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

Gross Profit Total Revenue

Honda fundamental ratios Correlations

	Total Assets	Short Long Term Debt Total	Other Current Liab	Total Current Liabilities	Total Stockholder Equity	Property Plant And Equipment Net	Net Debt	Retained Earnings	Cash	Non Current Assets Total	Non Currrent Assets Other	Cash And Short Term Investments	Net Receivables	Common Stock Shares Outstanding	Non Current Liabilities Total	Inventory	Other Current Assets	Other Stockholder Equity	Total Liab	Property Plant And Equipment Gross	Total Current Assets	Short Term Debt	Accounts Payable	Other Liab	Other Assets	Long Term Debt
Total Assets		0.98	0.72	0.99	0.99	0.98	0.54	0.98	0.94	1.0	0.88	0.94	0.69	0.72	0.97	0.96	0.38	-0.94	0.99	0.97	0.99	0.97	0.75	0.79	0.6	0.8
Short Long Term Debt Total	0.98		0.59	0.98	0.93	0.98	0.69	0.95	0.86	0.99	0.84	0.86	0.77	0.62	0.99	0.89	0.46	-0.9	1.0	0.99	0.94	0.99	0.75	0.76	0.62	0.77
Other Current Liab	0.72	0.59		0.68	0.8	0.6	-0.05	0.77	0.84	0.67	0.6	0.83	0.25	0.7	0.57	0.85	0.13	-0.77	0.63	0.59	0.79	0.61	0.48	0.54	0.35	0.56
Total Current Liabilities	0.99	0.98	0.68		0.96	0.97	0.59	0.96	0.9	0.99	0.86	0.89	0.74	0.63	0.97	0.94	0.4	-0.91	0.99	0.97	0.97	0.99	0.76	0.77	0.61	0.77
Total Stockholder Equity	0.99	0.93	0.8	0.96		0.94	0.4	0.98	0.98	0.97	0.88	0.98	0.6	0.78	0.93	0.98	0.31	-0.95	0.95	0.94	0.99	0.92	0.71	0.8	0.58	0.81
Property Plant And Equipment Net	0.98	0.98	0.6	0.97	0.94		0.63	0.93	0.89	0.99	0.87	0.9	0.71	0.66	0.98	0.89	0.31	-0.89	0.98	1.0	0.94	0.96	0.73	0.86	0.71	0.87
Net Debt	0.54	0.69	-0.05	0.59	0.4	0.63		0.47	0.27	0.59	0.37	0.27	0.91	0.03	0.68	0.33	0.62	-0.44	0.64	0.64	0.45	0.68	0.69	0.33	0.36	0.34
Retained Earnings	0.98	0.95	0.77	0.96	0.98	0.93	0.47		0.95	0.97	0.86	0.95	0.65	0.76	0.94	0.97	0.4	-0.97	0.96	0.92	0.99	0.94	0.72	0.72	0.54	0.74
Cash	0.94	0.86	0.84	0.9	0.98	0.89	0.27	0.95		0.92	0.89	1.0	0.49	0.85	0.86	0.96	0.19	-0.94	0.89	0.89	0.96	0.85	0.64	0.83	0.61	0.84
Non Current Assets Total	1.0	0.99	0.67	0.99	0.97	0.99	0.59	0.97	0.92		0.88	0.92	0.71	0.69	0.98	0.93	0.37	-0.93	0.99	0.99	0.97	0.97	0.75	0.81	0.63	0.82
Non Currrent Assets Other	0.88	0.84	0.6	0.86	0.88	0.87	0.37	0.86	0.89	0.88		0.89	0.53	0.69	0.84	0.84	0.21	-0.84	0.85	0.87	0.87	0.81	0.64	0.8	0.62	0.81
Cash And Short Term Investments	0.94	0.86	0.83	0.89	0.98	0.9	0.27	0.95	1.0	0.92	0.89		0.48	0.85	0.86	0.96	0.16	-0.94	0.88	0.89	0.95	0.84	0.64	0.84	0.63	0.86
Net Receivables	0.69	0.77	0.25	0.74	0.6	0.71	0.91	0.65	0.49	0.71	0.53	0.48		0.2	0.76	0.56	0.63	-0.64	0.76	0.72	0.64	0.78	0.92	0.44	0.38	0.43
Common Stock Shares Outstanding	0.72	0.62	0.7	0.63	0.78	0.66	0.03	0.76	0.85	0.69	0.69	0.85	0.2		0.65	0.77	0.12	-0.81	0.64	0.65	0.75	0.58	0.33	0.65	0.39	0.69
Non Current Liabilities Total	0.97	0.99	0.57	0.97	0.93	0.98	0.68	0.94	0.86	0.98	0.84	0.86	0.76	0.65		0.88	0.47	-0.9	0.99	0.98	0.94	0.98	0.74	0.76	0.58	0.77
Inventory	0.96	0.89	0.85	0.94	0.98	0.89	0.33	0.97	0.96	0.93	0.84	0.96	0.56	0.77	0.88		0.36	-0.93	0.92	0.89	0.99	0.9	0.69	0.71	0.5	0.72
Other Current Assets	0.38	0.46	0.13	0.4	0.31	0.31	0.62	0.4	0.19	0.37	0.21	0.16	0.63	0.12	0.47	0.36		-0.37	0.44	0.33	0.38	0.47	0.5	-0.18	-0.26	-0.16
Other Stockholder Equity	-0.94	-0.9	-0.77	-0.91	-0.95	-0.89	-0.44	-0.97	-0.94	-0.93	-0.84	-0.94	-0.64	-0.81	-0.9	-0.93	-0.37		-0.91	-0.88	-0.95	-0.9	-0.71	-0.72	-0.54	-0.75
Total Liab	0.99	1.0	0.63	0.99	0.95	0.98	0.64	0.96	0.89	0.99	0.85	0.88	0.76	0.64	0.99	0.92	0.44	-0.91		0.98	0.96	0.99	0.76	0.77	0.6	0.77
Property Plant And Equipment Gross	0.97	0.99	0.59	0.97	0.94	1.0	0.64	0.92	0.89	0.99	0.87	0.89	0.72	0.65	0.98	0.89	0.33	-0.88	0.98		0.93	0.96	0.73	0.84	0.7	0.85
Total Current Assets	0.99	0.94	0.79	0.97	0.99	0.94	0.45	0.99	0.96	0.97	0.87	0.95	0.64	0.75	0.94	0.99	0.38	-0.95	0.96	0.93		0.94	0.73	0.75	0.55	0.76
Short Term Debt	0.97	0.99	0.61	0.99	0.92	0.96	0.68	0.94	0.85	0.97	0.81	0.84	0.78	0.58	0.98	0.9	0.47	-0.9	0.99	0.96	0.94		0.75	0.72	0.61	0.72
Accounts Payable	0.75	0.75	0.48	0.76	0.71	0.73	0.69	0.72	0.64	0.75	0.64	0.64	0.92	0.33	0.74	0.69	0.5	-0.71	0.76	0.73	0.73	0.75		0.52	0.41	0.52
Other Liab	0.79	0.76	0.54	0.77	0.8	0.86	0.33	0.72	0.83	0.81	0.8	0.84	0.44	0.65	0.76	0.71	-0.18	-0.72	0.77	0.84	0.75	0.72	0.52		0.83	0.99
Other Assets	0.6	0.62	0.35	0.61	0.58	0.71	0.36	0.54	0.61	0.63	0.62	0.63	0.38	0.39	0.58	0.5	-0.26	-0.54	0.6	0.7	0.55	0.61	0.41	0.83		0.85
Long Term Debt	0.8	0.77	0.56	0.77	0.81	0.87	0.34	0.74	0.84	0.82	0.81	0.86	0.43	0.69	0.77	0.72	-0.16	-0.75	0.77	0.85	0.76	0.72	0.52	0.99	0.85

Click cells to compare fundamentals

Honda Account Relationship Matchups

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

Honda Investors Sentiment

The influence of Honda's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Honda. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.

Investor biases related to Honda's public news can be used to forecast risks associated with an investment in Honda. The trend in average sentiment can be used to explain how an investor holding Honda can time the market purely based on public headlines and social activities around Honda Motor Co. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.

Honda's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Honda's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Honda's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Honda.

Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Honda in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Honda's short interest history, or implied volatility extrapolated from Honda options trading.

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When determining whether Honda Motor offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Honda's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Honda Motor Co Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Honda Motor Co Stock:

How To Invest In Honda

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Is Honda Stock a good investment?

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What is Honda's Net Worth?

Details

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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.

You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.

Complementary Tools for Honda Stock 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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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

Earnings Share

3.71

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.

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Honda Enterprise Value vs Invested Capital Analysis

Enterprise Value vs Invested Capital

Enterprise Value vs Invested Capital Correlation Analysis

Correlation Coefficient

Enterprise Value

Invested Capital

Honda fundamental ratios Correlations

Honda Account Relationship Matchups

High Positive Relationship

High Negative Relationship

Honda fundamental ratios Accounts

Honda Investors Sentiment

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

Complementary Tools for Honda Stock analysis

COMMON DESTINATIONS

MAIN CATEGORIES

COMPANY

Non Current Assets Total	+ 1.0	Total Assets
Total Liab	+ 1.0	Short Long Term Debt Total
Property Plant And Equipment Gross	+ 1.0	Property Plant And Equipment Net
Cash And Short Term Investments	+ 1.0	Cash
Total Current Liabilities	+ 0.99	Total Assets
Total Stockholder Equity	+ 0.99	Total Assets

Other Stockholder Equity	- 0.97	Retained Earnings
Total Current Assets	- 0.95	Other Stockholder Equity
Other Stockholder Equity	- 0.95	Total Stockholder Equity
Other Stockholder Equity	- 0.94	Cash And Short Term Investments
Other Stockholder Equity	- 0.94	Cash
Other Stockholder Equity	- 0.94	Total Assets