Honda Motor Co (FRA:HDM) EV-to-EBIT: -22.57 (As of Aug. 02, 2026)

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FRA:HDM Honda Motor Co Ltd FRA:HDM
77 GF Score
Price €8.75
GF Value €10.46
Valuation Modestly Undervalued
! 8 Warning Signs
View Full Analysis

What is Honda Motor Co EV-to-EBIT?

Honda Motor Co FRA:HDM -1.01% 77 EV-to-EBIT is -22.57 as of Aug. 02, 2026. GuruFocus rates FRA:HDM with a GF Score™ of 77/100 and a GF Value™ of €10.46 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 1,080 Vehicles & Parts companies, Honda Motor Co ranks worse than 92592.5% on this metric.

EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Honda Motor Co's Enterprise Value is €33,635 Mil. Honda Motor Co's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 was €-1,490 Mil. Therefore, Honda Motor Co's EV-to-EBIT for today is -22.57.

The historical rank and industry rank for Honda Motor Co's EV-to-EBIT or its related term are showing as below:

FRA:HDM' s EV-to-EBIT Range Over the Past 10 Years
Min: -19.47   Med: 3.15   Max: 7.61
Current: -19.42

During the past 13 years, the highest EV-to-EBIT of Honda Motor Co was 7.61. The lowest was -19.47. And the median was 3.15.

FRA:HDM's EV-to-EBIT is ranked worse than
100% of 1080 companies
in the Vehicles & Parts industry
Industry Median: 13.175 vs FRA:HDM: -19.42

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt) %. Honda Motor Co's Enterprise Value for the quarter that ended in Mar. 2026 was €25,866 Mil. Honda Motor Co's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 was €-1,490 Mil. Honda Motor Co's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was -5.76%.


Honda Motor Co  (FRA:HDM) EV-to-EBIT Explanation

This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt) %.

Honda Motor Co's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

Earnings Yield (Joel Greenblatt) % (Q: Mar. 2026 ) =EBIT / Enterprise Value (Q: Mar. 2026 )
=-1489.965/25866.4088
=-5.76 %

Honda Motor Co's Enterprise Value for the quarter that ended in Mar. 2026 was €25,866 Mil.
Honda Motor Co's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €-1,490 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Honda Motor Co EV-to-EBIT Related Terms


Honda Motor Co EV-to-EBIT Historical Data

* Premium members only.

The historical data trend for Honda Motor Co's EV-to-EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Honda Motor Co EV-to-EBIT Chart

Honda Motor Co Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
EV-to-EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.00 5.83 4.87 4.24 -14.94

Honda Motor Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EV-to-EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.24 1.62 1.20 1.36 -14.94

FRA:HDM vs TSLA, GM, F: EV-to-EBIT Comparison

For the Auto Manufacturers subindustry, Honda Motor Co's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Honda Motor Co EV-to-EBIT vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Honda Motor Co's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Honda Motor Co's EV-to-EBIT falls into.


FRA:HDM
77GF Score
Honda Motor Co Ltd FRA:HDM
EV-to-EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Honda Motor Co EV-to-EBIT Calculation

Honda Motor Co's EV-to-EBIT for today is calculated as:

EV-to-EBIT=Enterprise Value (Today)/EBIT (TTM)
=33635.150/-1489.965
=-22.57

Honda Motor Co's current Enterprise Value is €33,635 Mil.
Honda Motor Co's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €-1,490 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EV-to-EBIT →
What does a EV-to-EBIT of -22.57 mean?
Honda Motor Co (FRA:HDM) has a EV-to-EBIT of -22.57 as of Aug. 02, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Honda Motor Co and its competitors. According to the industry distribution chart, Honda Motor Co ranks #999999 out of 1080 companies in the Vehicles & Parts industry.
Is Honda Motor Co's EV-to-EBIT too high?
Honda Motor Co's current EV-to-EBIT is -22.57. Based on the distribution chart, Honda Motor Co ranks #999999 out of 1080 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Honda Motor Co has a GF Score™ of 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Honda Motor Co's EV-to-EBIT compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Honda Motor Co ranks #999999 out of 1080 companies for EV-to-EBIT. This places Honda Motor Co in the lower half of its industry. The industry median EV-to-EBIT is 13.18. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBIT for a Vehicles & Parts company?
The median EV-to-EBIT among Vehicles & Parts companies is 13.18, based on 1,080 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Honda Motor Co and its competitors. For the Vehicles & Parts industry, the median EV-to-EBIT is 13.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Honda Motor Co's current EV-to-EBIT is -22.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Honda Motor Co stock overvalued right now?
Based on GuruFocus' analysis, Honda Motor Co (FRA:HDM) is currently considered Modestly Undervalued. The stock's GF Value™ is €10.46, compared to a current price of €8.75 — trading 16.3% below its estimated fair value. The current EV-to-EBIT is -22.57. Honda Motor Co's overall GF Score™ is 77/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Honda Motor Co (FRA:HDM), the current EV-to-EBIT is -22.57 as of Aug. 02, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Honda Motor Co (FRA:HDM) Overvalued in 2026?

Based on GuruFocus' analysis, Honda Motor Co stock appears to be undervalued. The current stock price of €8.75 is trading 16.3% below its estimated GF Value™ of €10.46. GuruFocus considers Honda Motor Co to be Modestly Undervalued.

Key valuation signals for FRA:HDM:

  • EV-to-EBIT: -22.57
  • GF Value™: €10.46 vs. price of €8.75 (16.3% below fair value)
  • GF Score™: 77/100 with 8 warning signs

No single metric tells the full story. See the FRA:HDM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Honda Motor Co Business Description

Address Toranomon 2-chome, No.2-3, Minato-ku, Tokyo, JPN, 105-8404
Incorporated in 1948, Honda Motor was originally a motorcycle manufacturer. Today, the firm makes automobiles, motorcycles, and power products such as boat engines, generators, and lawnmowers. Including joint ventures, Honda sold 3.4 million light vehicles and 22.1 million motorcycles in fiscal 2026, and consolidated sales were JPY 21.8 trillion. Automobiles constitute 64% of revenue and motorcycles 18%, with the rest split between power products and financial services. Honda also makes robots and private jets.
77GF Score

Get the complete analysis for FRA:HDM

EV-to-EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€8.75
Price
€10.46
GF Value