Honda Motor Co Ltd (HMC) Stock by the Numbers

Honda Motor Co Ltd (HMC) receives a strong valuation ranking of 83 from InvestorsObserver data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. HMC has a better value than 83% of stocks based on these valuation analytics. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.

HMC gets a 83 Valuation Rank today. Find out what this means to you and get the rest of the rankings on HMC!

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Metrics Analysis

HMC has a trailing twelve month Price to Earnings (PE) ratio of 6.8 which places it below the histroical average of roughly 15. HMC is currently trading at a good value due to investors paying less than what the stock is worth in relation to its earnings. HMC's trailing-12-month earnings per share (EPS) of 2.95 does justify its share price in the market. Trailing PE ratios do not factor in the company's projected growth rate, thus, some firms will have high PE ratios caused by high growth recruiting more investors even if the underlying company has produced low earnings so far. HMC's 12-month-forward PE to Growth (PEG) ratio of 1.29 is considered a poor value as the market is overvaluing HMC in relation to the company's projected earnings growth due. HMC's PEG comes from its forward price to earnings ratio being divided by its growth rate. A PEG ratio of 1 represents a perfect correlation between earnings growth and share price. Due to their incorporation of more fundamentals of a company's overall health and focusing on the future rather than the past, PEG ratios are one of the most used valuation metrics by analysts today.

Summary

All together these valuation metrics paint a pretty poor picture for HMC at its current price due to a overvalued PEG ratio due to strong growth. The PE and PEG for HMC are worse than the average of the market resulting in a valuation score of 83. Click Here to get the full Report on Honda Motor Co Ltd (HMC) stock.