HMC Price Forecast Based on Dividend Discount Model

A technique commonly used by dividend investors to value dividend-issuing stocks is the Dividend Discount Model (DDM), which seeks to determine a fair share price based on the dividend provided by the company relative to a number of other company-specific factors. In the case of HMC, the DDM model generated by StockNews estimates a return of positive 34.95% in comparison to its current price. To help understand and contextualize the model's evaluation of HMC, investors may wish to consider are:

• In comparison to other US listed dividend yielding stocks in the Consumer Cyclical sector, Honda Motor Co Ltd's expected return of 34.95% is higher than 92.05% of its fellow sector mates.
• Compared to all dividend issuing stocks in our set, Honda Motor Co Ltd bears a discount rate, according to our calculations, lower than 92.05% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• HMC's annual revenue, now at roughly $126 billion US dollars, classifies the stock in the large-sized revenue class -- and relative to other dividend issuers in this class, the growth rate of its dividend is greater than that of only 12.73% of them.

HMC Dividends vs. Peers