AlphaMadera's AlphaVal page classifies Honda Motor Co., Ltd. as a Cyclical & Capital-Intensive business and values it using Normalized Earnings × Cycle Multiple, then compares the result to the current market price to flag HMC as undervalued, fairly valued, or overvalued.

What is Honda Motor Co., Ltd.'s fair value?

Fair value for HMC comes from a Normalized Earnings × Cycle Multiple model -- the approach AlphaVal selected for this company's Cyclical & Capital-Intensive classification. The live AlphaVal page shows bear, base, and bull scenarios alongside the key assumption behind each.

How does AlphaMadera value HMC?

AlphaVal routes each company to one of ten valuation archetypes based on its business model. HMC was classified as Cyclical & Capital-Intensive and is valued using Normalized Earnings × Cycle Multiple, built from HMC's most recent reported fundamentals.

HMC - Honda Motor Co., Ltd.

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $34.00 DETAILS

AlphaVal

Deterministic, archetype-aware fair value

Cyclical & Capital-Intensive 80% confidence

Primary model: Normalized Earnings × Cycle Multiple

Valuation Signal Overvalued Moderate

Trading 38.9% above fair value

Current Price $34.58

Bear Case $18.34 46.9% downside ($18.34 - $34.58) / $34.58 = -46.9% $2.62 × 7x

Fair Value $24.90 28.0% downside ($24.90 - $34.58) / $34.58 = -28.0% $2.62 × 10x

Bull Case $31.45 9.1% downside ($31.45 - $34.58) / $34.58 = -9.1% $2.62 × 12x

Adjust Assumptions

Cycle P/E Multiple

9.5x

Normalized EPS

2.62$

Key Value Driver

Through-cycle normalized EPS ($2.62)

Terminal Value % of EV

Implied Market Multiple 13.2x

Market is pricing in (growth)

Plain-Language Summary

Using 7-year normalized EPS of $2.62 at a 10x cycle multiple, the base-case value is $24.90 per share. P/TBV cross-check: 0.6x.

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above -- shown only as an outside comparison.

Average Target (18 analysts) $34.00

Analyst Range $34.00 – $34.00

Divergence from AlphaVal 27%

Warnings

⚠ This company has a built-in lending arm whose debt is mixed in with the main business. We capped the debt adjustment to avoid overstating what the core business owes.

ℹ Price-to-book value of 0.6x is below the typical low point. This could be a bargain, but check whether asset write-downs are coming.

ℹ Wall Street's average price target is $34.00 (from 18 analysts). Our estimate is 27% below the consensus -- consider that gap carefully.

ℹ Financial statements were converted from JPY into USD using USDJPY at 0.0064 USD per JPY.

Key Risks

Standard 10-year DCF produces unreliable terminal values for cyclicals
'Cheap' P/E at cycle peak is the most common value trap — normalize first
Captive finance subsidiaries have different risk profiles from manufacturing