HMC - Honda Motor Co. Is Priced At A Steep Discount To Intrinsic Value
2024-04-09 08:54:27 ET
Summary
- Honda's stock is deeply undervalued relative to its fundamentals, with a P/TBV ratio of 0.74 and P/FCF ratio of 5.83.
- The company is consistently profitable and FCF-positive, and there's little reason to expect this to change anytime soon.
- With the stock trading at a discount to TBV, the business's current and future profits are a windfall for investors. Additionally, Honda's brand value is an unaccounted-for hidden asset.
- Defying the skeptics, Honda's focus on hybrid vehicles is currently demonstrating success and resilience, with strong sales growth amid ongoing carnage in the fully-electric BEV market.
...
Honda Motor Co. Is Priced At A Steep Discount To Intrinsic Value