Honda Motor Co Ltd ADR (HMC) Fair Value & Analysis
Consumer Cyclical · US · Market cap $34.1B · ISIN US4381283088
What is Honda Motor Co Ltd ADR really worth?
Honda Motor Co Ltd ADR
HMC · US
Below-average quality, trading 36% below our fair value of $51.25.
Strengths
Risks
For context
Fair value as of: Aug 31, 2026
From 11 valuation models · updated 5 days ago
Fair value updated Aug 31, 2026, revised from $45.86 to $51.25 (+11.7%) since Aug 27, 2026. Share price +9.7% over the past month.
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 ($35.91). The market is more pessimistic than our downside scenario.
- A fairly wide model range ($35.91 to $67.32) leaves room in how you read the outcome.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 31, 2026.
How to read this chart
60‑month range $18.65 – $34.03 · fair‑value band $35.91 – $67.32 · the $33.04 price screens below the $51.25 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 31, 2026.
Analysis
Honda Motor Co Ltd ADR (HMC) currently trades at $33.04, while our model-based Fair Value estimate is $51.25, implying the stock looks roughly 35.5% 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 $37.99 per share, and 6 of the 11 models we run sit above the $33.04 price. Bear case: the Multiples group reads lowest at $25.55, and 5 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 Aug 31, 2026
Our scenario range runs from $35.91 (bear case) to $67.32 (bull case); at $33.04, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 1% below its 52-week high and 42% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at −17% fair-value upside, at 55%, HMC screens cheaper than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.
All 11 models by family
Widest divergence: Asset-Based ($37.99) versus Multiples ($25.55). Highest evidence: FCF DCF (78).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 31, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 41 · Market factors (momentum, volatility) 68
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.
of which total revenue +5.1 % · buybacks/dilution +1.4 %
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).
Watch HMC: get an alert when its fair value changes →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Why Toyota and Honda would get hit hardest by Trump's Canadian auto tariffs
- Honda (TSE:7267) Stock May Be 25% Undervalued As Software Deal Nears
- Honda Gains as Nissan Software Pact Targets 2029 Cars
- Honda Motor (HMC) Just Flashed Golden Cross Signal: Do You Buy?
Peer Group
Auto Manufacturers · 115 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 Multiples vs Auto Manufacturers median · lower = cheaper
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.
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Auto Manufacturers stocks, each showing price versus our Fair Value estimate (as of Aug 31, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Toyota Motor Corporation TM | $188.78 | $228.25 | +21% |
| BYD Company 81211 | HK$76.90 | HK$48.59 | −37% |
| Hyundai Motor Company 005380 | 418,500 KRW | 567,393 KRW | +36% |
| Ferrari N.V RACE | €355.50 | €167.67 | −53% |
| General Motors Company GM | $86.27 | $52.69 | −39% |
| Ford Motor Company F | $13.88 | $11.51 | −17% |
| Mercedes-Benz Group MBG | €46.95 | €106.16 | +126% |
| 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 VOW3 | €77.42 | €248.34 | +221% |
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