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Data-driven stock valuation

Honda Motor Co Ltd ADR (HMC) fair value: what the stock is really worth

We calculate from audited financials what Honda Motor Co Ltd ADR is really worth. The fair value tells you whether the price is too high or too low, the quality score (0 to 100) how solid the business behind it is. 26 models, 37 quality factors, updated daily, free.

  1. Compare price with fair valuebelow fair value = cheap, above = expensive
  2. Check the quality50 and up solid, 75 and up strong
  3. Watch it or check another stockalert when fair value or trend changes

Consumer Cyclical · US · Market cap $42.1B · ISIN US4381283088

At a glance

HM Honda Motor Co Ltd ADR logo Honda Motor Co Ltd ADR HMC · US
Price$31.62
Fair Value$50.08
Upside+58.4%
Quality42/100

Below-average quality, trading 37% below our fair value of $50.08.

As of Sep 8, 2026, the fair value of Honda Motor Co Ltd ADR is $50.08 per share against a price of $31.62, so the fair value sits 58% above the price. A model estimate from reported figures, not an analyst target.

!Mixed Growth (revenue 5y +11.9 %/yr)
!Loss-making · -2.0% net margin
Moderate debt · generates free cash flow
·5.07% dividend yield
!Mixed vs. peers (5/12)
!Narrow moat 19/100
!Evidence only medium, so the estimate is less certain
Evidence: Medium Range $35.08 to $65.78

Fair value as of: Sep 8, 2026

From 11 valuation models · updated 3 days ago

Fair value updated Sep 8, 2026, revised from $45.13 to $50.08 (+11.0%) since Aug 31, 2026. Share price −0.3% over the past month.

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What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The large discount to fair value meets weak quality (42/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case ($35.08). The market is more pessimistic than our downside scenario.
  • A fairly wide model range ($35.08 to $65.78) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

$34.03 $18.65 Fair Value $50.08 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 8, 2026.

How to read this chart

60‑month range $18.65 – $34.03 · fair‑value band $35.08 – $65.78 · the $31.62 price screens below the $50.08 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 8, 2026.

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Analysis

Honda Motor Co Ltd ADR (HMC) currently trades at $31.62, while our model-based Fair Value estimate is $50.08, implying the stock looks roughly 36.9% undervalued today. The Quality Score stands at 42/100 (below-average quality), in the Consumer Cyclical sector. Bull case: the Asset-Based group reads highest at a median of $39.84 per share, and 8 of the 11 models we run sit above the $31.62 price. Bear case: the Multiples group reads lowest at $26.79, and 3 of the 11 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Honda Motor Co Ltd ADR generated revenue of $21.8T at a net margin of −2.0%. Revenue grew 8.6% year over year. It earns a return on equity of −2.9%. Net debt stands at $8.4T. Fundamentals as of Sep 8, 2026

Scenario range: $35.08 (bear) to $65.78 (bull), the price of $31.62 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target. The share trades about 5% below its 52-week high and 36% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at −18% fair-value upside, at 58%, HMC screens cheaper than that median.

Fair Value models

Each model values the company its own way; the fair value above is the evidence-weighted blend. Evidence (0 to 100) shows how complete a model's inputs are. How we calculate →

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF $21.90 $38.75 $64.19 78
Growth DCF $22.50 $37.52 $58.88 77
5Y EBITDA Exit $26.11 $48.34 $74.06 74
All 11 models by family
DCF Models
FCF DCF $21.90 $38.75 $64.19 78
Owner Earnings $6.62 $15.22 $28.22 72
5Y Revenue Exit $17.23 $31.86 $50.28 71
5Y EBITDA Exit $26.11 $48.34 $74.06 74
10Y Revenue Exit $17.88 $31.58 $49.51 65
10Y EBITDA Exit $24.28 $42.98 $67.54 67
Multiples
EV/EBITDA $33.15 $47.32 $61.49 67
EV/Revenue $15.95 $26.79 $37.63 52
Asset-Based
NCAV (Graham) $29.73 $39.84 $59.46 54
Growth DCF
Growth DCF $22.50 $37.52 $58.88 77
Rev-Margin DCF $17.23 $32.03 $48.92 71

Widest divergence: Asset-Based ($39.84) versus Multiples ($26.79). Highest evidence: FCF DCF (78).

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Key figures & financial health

EPS (TTM) $−1.98
Dividend yield 5.1%
Net margin −1.9% FY2026
Return on equity −2.9% TTM
Return on assets (EBIT) 2.8% avg 5y
Operating margin −17.3% TTM
More key figures
Growth
Revenue (TTM) $21.8T TTM
Revenue growth (YoY) +8.6% 3y avg +11.0%
EPS growth (YoY) −41.2%
Balance sheet & cash flow
Free cash flow $555B FY2026
Net debt $8.4T FY2026 · ≈ 15.2 yrs of FCF

Figures from reported company fundamentals · as of Sep 8, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 42/100

Of which business quality 41 · Market factors (momentum, volatility) 64

Profitability 18
Margins and returns on capital today
Quality Growth 18
Are margins and returns improving?
Cashflow 24
Earnings quality: real cash, not paper profit
Fin. Strength 37
Balance sheet, leverage, solvency risk
Investment 77
Disciplined investing over empire-building
Low Volatility 85
Calm price path (market factor)
Momentum 55
Price trend over the last 3–12 months (market factor)
52W Momentum 56
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Honda Motor Co., Ltd. engages in the development, manufacturing, and distribution of motorcycles, automobiles, and power products in Japan, North America, Europe, Asia, and internationally. It operates through four segments: Motorcycle Business, Automobile Business, Financial Services Business, and Power Product and Other Businesses.

Full company description

Honda Motor Co., Ltd. engages in the development, manufacturing, and distribution of motorcycles, automobiles, and power products in Japan, North America, Europe, Asia, and internationally. It operates through four segments: Motorcycle Business, Automobile Business, Financial Services Business, and Power Product and Other Businesses. The Motorcycle Business segment produces motorcycles, including sports, business, and commuter models; and various off-road vehicles, such as all-terrain vehicles and side-by-sides. The Automobile Business segment offers passenger cars, light trucks, and mini vehicles. The Financial Services Business segment provides various financial services, including retail lending and leasing services to customers, as well as wholesale financing services to dealers. The Power Product and Other Businesses manufactures and sells power products, such as general-purpose engines, lawn mowers, generators, water pumps, brush cutters, and tillers. This segment also offers HondaJet aircraft. The company also sells spare parts; and provides after-sales services through retail dealers directly, as well as through independent distributors and licensees. Honda Motor Co., Ltd. was founded in 1946 and is headquartered in Tokyo, Japan.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Honda Motor Co Ltd ADR reported revenue of ¥23.1T in FY2026 versus ¥14.6T in FY2022, a compound +12.3%/yr. Reported net income was −¥450B in FY2026.

Growth Quality 57/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2026)
$23.1T
Latest YoY
+6.6%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+11.0%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+11.9%
Avg. revenue growth/yr (40Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.3%
EBIT margin (trend) Operating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.
5.0% (2021) → −1.9% (2026)
Value creation/yr We only publish this rate when it is defensible. Reason: fiscal 2026 is a loss year, no rate is defined from a loss
not computed
Revenue +12.3%/yr
FY22 ¥14.6T
FY23 ¥16.9T
FY24 ¥20.4T
FY25 ¥21.7T
FY26 ¥23.1T
Net income
FY22 ¥707B
FY23 ¥651B
FY24 ¥1.1T
FY25 ¥836B
FY26 −¥450B
Character of growth · EPS growth decomposed (2015-2026) +9.9 % p.a.
Revenue per share +6.7 %

of which total revenue +5.1 % · buybacks/dilution +1.4 %

EBIT margin +2.8 %
Tax rate +0.8 %
Residual (interest, one-offs) −0.4 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Honda Motor Co Ltd ADR Fair Value". https://www.fairvalue-calculator.com/stock/HMC

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Auto Manufacturers · 114 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Valuation
Quality Score 42 · Below median
Fair Value upside +62% · Top 25%
Profitability
Return on assets −1% · Below median
Net margin (TTM) −2% · Below median
Operating margin (TTM) −17% · Bottom 25%
Growth and dividend
Revenue growth 9% · Above median
Dividend yield (TTM) 5.1% · Top 25%
Balance sheet
Debt / equity 0.59× · Highest 25%

Valuation Multiples vs Auto Manufacturers median · lower = cheaper

P/FCF 0.1× · Cheapest 25%
EV/EBITDA 2.1× · Cheapest 25%
PEG 3.45× · Priciest 25%

Context: sector, industry, market

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 26
FUTURE43 · sector 30
PAST0 · sector 21
HEALTH71 · sector 94
DIVIDEND100 · sector 50

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Auto Manufacturers stocks, each showing price versus our Fair Value estimate (as of Sep 8, 2026).

Stock Price Fair Value vs Fair Value
Toyota Motor Corporation TM $188.78 $235.50 +25%
BYD Company 81211 HK$73.50 HK$46.64 −37%
Hyundai Motor Company 005380 418,500 KRW 567,393 KRW +36%
Ferrari N.V RACE €346.00 €167.67 −52%
General Motors Company GM $87.76 $52.69 −40%
Ford Motor Company F $14.00 $11.51 −18%
Mercedes-Benz Group MBG €47.69 €106.16 +123%
Dr. Ing. h.c. F. Porsche AG P911 €43.91 €17.34 −61%
Maruti Suzuki India Limited MARUTI ₹12,694 ₹8,236 −35%
Volkswagen AG VOW €81.65 €248.34 +204%

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Frequently asked questions

Is Honda Motor Co Ltd ADR (HMC) overvalued or undervalued?
As of Sep 8, 2026, our model estimates a fair value of $50.08 versus a price of $31.62, about +58% upside (undervalued).
What is the fair value of HMC?
Our model-based fair value for Honda Motor Co Ltd ADR is $50.08 (as of Sep 8, 2026), built from audited fundamentals. The current price: $31.62.
What is the quality score of HMC?
Honda Motor Co Ltd ADR has a Quality Score of 42/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Honda Motor Co Ltd ADR (HMC)?
Our model-based price target is the fair value of $50.08 (as of Sep 8, 2026) from 11 valuation models. Cautious scenario $35.08, optimistic scenario $65.78. It is a calculation from audited fundamentals, not an analyst target.
What is the Honda Motor Co Ltd ADR stock forecast for 2026?
Our models put fair value at $50.08, about +58% upside versus a price of $31.62 (undervalued). Cautious scenario $35.08, optimistic scenario $65.78. The calculation is refreshed regularly with new filings.
What is the revenue of Honda Motor Co Ltd ADR (HMC)?
Honda Motor Co Ltd ADR reported trailing-twelve-month revenue of about $21.8T (latest available figure, as of Sep 8, 2026).
What is the net profit margin of HMC?
The net profit margin of Honda Motor Co Ltd ADR is about −2.0%, meaning it is currently running at a net loss. Based on the latest reported figures.
Does Honda Motor Co Ltd ADR pay a dividend?
Honda Motor Co Ltd ADR currently shows a dividend yield of about 5.07% relative to its recent price (as of Sep 8, 2026).
What is the intrinsic value of Honda Motor Co Ltd ADR (HMC)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Honda Motor Co Ltd ADR it is $50.08 per share (as of Sep 8, 2026), against a price of $31.62. It is the blended result of 11 valuation models (cash flow, earnings, asset, dividend).
Is Honda Motor Co Ltd ADR stock overvalued or undervalued in 2026?
As of Sep 8, 2026, HMC trades below its calculated fair value: price $31.62, fair value $50.08, a gap of about +58% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of HMC?
No. The price is what the market pays today ($31.62); the fair value is what the company's own numbers justify ($50.08). For Honda Motor Co Ltd ADR the two are $18.46 per share apart. That gap is exactly why we show both numbers side by side.
How much is Honda Motor Co Ltd ADR worth?
The market values Honda Motor Co Ltd ADR at about $42.1B (market capitalisation, as of Sep 8, 2026). Per share that is $31.62; our models calculate a fair value of $50.08 per share.
What do the bullish and bearish scenarios say about HMC?
Our models span a range for Honda Motor Co Ltd ADR: cautious scenario $35.08, base $50.08, optimistic $65.78 per share (as of Sep 8, 2026, price $31.62). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the PEG ratio of HMC?
The PEG ratio of Honda Motor Co Ltd ADR is 3.45 (P/E divided by earnings growth, as of Sep 8, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Honda Motor Co Ltd ADR (HMC)?
Balance-sheet figures for Honda Motor Co Ltd ADR (as of Sep 8, 2026): return on equity −2.9%, debt of 0.59 per unit of equity. They feed the Quality Score of 42/100, which measures business quality independently of the share price.
How far is HMC from its 52-week high?
Honda Motor Co Ltd ADR trades at $31.62, about 5% below its 52-week high of $33.29 and 36% above the low of $23.25 (as of Sep 8, 2026). Distance from the high says nothing about value: that is what the fair value of $50.08 is for.
Which stocks are comparable to Honda Motor Co Ltd ADR?
From the same area (Consumer Cyclical) we also value Toyota Motor Corporation, BYD Company, Hyundai Motor Company, Ferrari N.V, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Honda Motor Co Ltd ADR stock attractive at the current price?
The data as of Sep 8, 2026: price $31.62, calculated fair value $50.08 (+58%), Quality Score 42/100, from 11 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of HMC calculated?
We run Honda Motor Co Ltd ADR through 11 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $50.08, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 32.6 % above its aggregate fair value. Honda Motor Co Ltd ADR currently trades 58 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on <a href="/is-it-worth-investing-now/">is it worth investing now</a>.
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