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HMC Price/Volume Stats

Honda Motor Company, Ltd. (HMC) Company Bio

Honda Motor Company develops, manufactures, and distributes motorcycles, automobiles, power, and other products worldwide. The company operates through four segments: Motorcycle Business, Automobile Business, Financial Services Business, and Power product and Other Businesses. The company was founded in 1946 and is based in Tokyo, Japan.

HMC Price Forecast Based on DCF Valuation

We started the process of determining a valid price forecast for Honda Motor Co Ltd with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Honda Motor Co Ltd ranked in the 97st percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 7215.17%. As for the metrics that stood out in our discounted cash flow analysis of Honda Motor Co Ltd, consider:

• The company's compound free cash flow growth rate over the past 5 years comes in at -0.05%; that's greater than merely 21.57% of US stocks we're applying DCF forecasting to.
• HMC's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than merely 0.92% of tickers in our DCF set.
• The weighted average cost of capital for the company is 6. This value is greater than only 2.33% stocks in the Consumer Cyclical sector that generate free cash flow.

For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as HMC, try ZXAIY, BGFV, LIVE, GIL, and DXYN.