Honda Motor Co Ltd banner

Honda Motor Co Ltd
TSE:7267

Watchlist Manager
Honda Motor Co Ltd Logo
Honda Motor Co Ltd
TSE:7267
Watchlist
Price: 1 262.5 JPY -0.32% Market Closed
Market Cap: ¥4.3T

P/FCFE

6.9
Current
16%
Cheaper
vs 3-y average of 8.3

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
6.9
=
Market Cap
¥8.2T
/
Free Cash Flow to Equity
¥959.9B

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
6.9
=
Market Cap
¥8.2T
/
Free Cash Flow to Equity
¥959.9B

Valuation Scenarios

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

If P/FCFE returns to its 3-Year Average (8.3), the stock would be worth ¥1 511.34 (20% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+222%
Average Upside
96%
Scenario P/FCFE Value Implied Price Upside/Downside
Current Multiple 6.9 ¥1 262.5
0%
3-Year Average 8.3 ¥1 511.34
+20%
5-Year Average 7.6 ¥1 382.58
+10%
Industry Average 16.2 ¥2 942.96
+133%
Country Average 22.4 ¥4 064.56
+222%

Forward P/FCFE
Today’s price vs future free cash flow to equity

Not enough data available to calculate forward P/FCFE

Peer Comparison

All Multiples
P/FCFE
P/E
All Countries
Close
Market Cap P/FCFE P/E
JP
Honda Motor Co Ltd
TSE:7267
4.3T JPY 6.9 13.4
US
Tesla Inc
NASDAQ:TSLA
1.5T USD 173.8 380
JP
Toyota Motor Corp
TSE:7203
39.1T JPY 215.9 10.6
CN
BYD Co Ltd
SZSE:002594
938.9B CNY -73.6 29.3
KR
Hyundai Motor Co
KRX:005380
139.5T KRW -53.9 14.8
DE
Mercedes Benz Group AG
MIL:MBG
75.3B EUR 10.5 4.9
DE
Daimler AG
XETRA:DAI
67.5B EUR -401.7 3.7
US
General Motors Co
NYSE:GM
68.5B USD -10 21.5
IT
Ferrari NV
MIL:RACE
56.9B EUR 59 35.5
DE
Mercedes-Benz Group AG
XETRA:MBG
47.5B EUR 20.3 9.2
DE
Bayerische Motoren Werke AG
XETRA:BMW
47.3B EUR 15.4 6.5

Market Distribution

Lower than 91% of companies in Japan
Percentile
9th
Based on 3 849 companies
9th percentile
6.9
Low
0.1 — 14.9
Typical Range
14.9 — 35
High
35 —
Distribution Statistics
Japan
Min 0.1
30th Percentile 14.9
Median 22.4
70th Percentile 35
Max 736 044 589.7

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 56%
Intrinsic Value
Price ¥1 262.5
Get AI-powered insights for any company or topic.
Open AI Assistant

Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.

Warren Buffett