Switch to:
Honda Motor Co Ltd (NYSE:HMC)
P/B Ratio
1.10 (As of Today)

As of today, Honda Motor Co Ltd's share price is $34.56. Honda Motor Co Ltd's Book Value per Share for the quarter that ended in Dec. 2013 was $30.90. Hence, Honda Motor Co Ltd's P/B Ratio of today is 1.10.

Good Sign:

Honda Motor Co Ltd stock P/B Ratio (=1.07) is close to 1-year low of 1.07

HMC' s 10-Year P/B Ratio Range
Min: 0.7   Max: 1.97
Current: 1.1

0.7
1.97

During the past 13 years, Honda Motor Co Ltd's highest P/B Ratio was 1.97. The lowest was 0.70. And the median was 1.35.

HMC's P/B Ratiois ranked higher than
69% of the 1154 Companies
in the Global Auto Manufacturers industry.

( Industry Median: 1.41 vs. HMC: 1.10 )

Honda Motor Co Ltd's Book Value per Share for the quarter that ended in Dec. 2013 was $30.9.

During the past 12 months, Honda Motor Co Ltd's average Book Value Per Share Growth Rate was 23.00% per year. During the past 3 years, the average Book Value Per Share Growth Rate was 5.40% per year. During the past 5 years, the average Book Value Per Share Growth Rate was 5.10% per year. During the past 10 years, the average Book Value Per Share Growth Rate was 5.10% per year.

During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of Honda Motor Co Ltd was 41.10% per year. The lowest was -13.20% per year. And the median was 11.20% per year.


Definition

Honda Motor Co Ltd's P/B ratio for today is calculated as follows:

P/B Ratio=Share Price/Book Value per Share (Q: Dec. 2013 )
=34.56/30.9
=1.12

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

It can also be calculated from the numbers for the whole company:

A closely related ratio is called Price-to-Tangible-Book Ratio. The difference between Price-to-Tangible-Book Ratio and Price-to-Book Ratio is that book value other than intangibles are used in the calculation.


Explanation

Unlike valuation ratios relative to the earning power such as P/E ratio, P/S ratio or Price-to-Free-Cash-Flow ratio, the Price-to-Book Ratio measures the valuation of the stock relative to the underlying asset of the company.

The Price-to-Book Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.


Be Aware

Some businesses have very light assets, such as software companies or insurance agencies. The Price-to-Book Ratio does not work well for these companies. Some companies even have negative equity, so the Price-to-Book Ratio cannot be applied to them.


Related Terms

Book Value per Share, Market Cap, Total Equity, Preferred Stock, P/E ratio, P/S ratio, Price-to-Free-Cash-Flow ratio, Price-to-Tangible-Book Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Honda Motor Co Ltd Annual Data

Mar04Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13
pb 1.631.571.601.691.181.061.381.261.281.34

Honda Motor Co Ltd Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
pb 0.941.001.281.111.001.261.341.261.231.34
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide