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Honda Motor (TSE:7267) Valuation Check After a 33% Share Price Gain Over the Past Year

Simply Wall St · 2d ago

Honda Motor (TSE:7267) has quietly put up a solid showing for shareholders, with the stock gaining about 33% over the past year even as the past 3 months have cooled slightly.

See our latest analysis for Honda Motor.

That move has been driven more by a reset in expectations than a sudden surge, with a modestly positive 1 month share price return but a strong 1 year total shareholder return showing longer term momentum is still intact.

If Honda’s steady climb has you thinking about what else might be revving up, now could be a good time to explore other auto manufacturers.

With earnings still growing and shares trading at a noticeable discount to both intrinsic value estimates and analyst targets, is Honda’s current price a rare misfire by the market, or does it already reflect its next leg of growth?

Most Popular Narrative Narrative: 8.6% Undervalued

Honda Motor’s most followed valuation narrative points to a fair value above the last close of ¥1,583, framing the current price as a modest opportunity rather than a stretched bet.

Ongoing cost optimization through price revisions, operational efficiencies, and expanding use of common platforms across models is improving cost structure and profitability, which will likely support higher long-term net margins and earnings stability even amidst short-term pressures from tariffs and currency fluctuations.

Read the complete narrative.

Curious how small margin shifts and steady revenue shape that upside case? The narrative leans on disciplined cost control, cautious growth assumptions, and a future earnings multiple that may surprise you. Want to see exactly how those pieces add up to the implied fair value? Read on and test whether these projections match your own view of Honda’s next chapter.

Result: Fair Value of ¥1,732.16 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this picture could change quickly if EV losses deepen or Chinese competition accelerates, which could squeeze auto margins despite motorcycle strength and cost savings.

Find out about the key risks to this Honda Motor narrative.

Build Your Own Honda Motor Narrative

If this does not quite fit your view or you would rather examine the numbers yourself, you can build a fresh narrative in under three minutes: Do it your way.

A great starting point for your Honda Motor research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.