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GuruFocus has detected 4 Warning Signs with Honda Motor Co Ltd $HMC.
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Honda Motor Co Ltd (NYSE:HMC)
Enterprise Value
$93,614 Mil (As of Today)

Think of enterprise value as the theoretical takeover price. It is more comprehensive than market capitalization (market cap), which only includes common equity. Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash and cash equivalents.

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Honda Motor Co Ltd's enterprise value is $93,614 Mil. Honda Motor Co Ltd's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $9,417 Mil. Therefore, Honda Motor Co Ltd's EV/EBIT ratio for today is 9.94.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Honda Motor Co Ltd's enterprise value is $93,614 Mil. Honda Motor Co Ltd's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2017 was $15,613 Mil. Therefore, Honda Motor Co Ltd's EV/EBITDA ratio for today is 6.00.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Honda Motor Co Ltd's enterprise value is $93,614 Mil. Honda Motor Co Ltd's revenue for the trailing twelve months (TTM) ended in Mar. 2017 was $128,523 Mil. Therefore, Honda Motor Co Ltd's EV/Revenue ratio for today is 0.73.


Definition

Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash and cash equivalents.

Honda Motor Co Ltd's Enterprise Value for the fiscal year that ended in Mar. 2017 is calculated as

Enterprise Value (A: Mar. 2017 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=54536.9928+0+35620.9234257
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+24681.3176108+2429.49436088-19974.0781905
=97,295

Honda Motor Co Ltd's Enterprise Value for the quarter that ended in Mar. 2017 is calculated as

Enterprise Value (Q: Mar. 2017 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=54536.9928+0+35620.9234257
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+24681.3176108+2429.49436088-19974.0781905
=97,295

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

When an investor buy a company, the investor needs to pay not only the common shares, he/she also needs to pay the shareholders of Preferred Stocks. He also assumes the debt of the company, and receives the cash on the company's balance sheet.

If a company has more cash than debt, the investor actually pays less than the Market Cap because he immediately owns the cash once the transaction goes through.

The market value of Preferred Stock needs to be added to the market value of common stocks in the calculation of enterprise value.

For the companies with the same Market Cap, the smaller the Enterprise Value is, the cheaper the company is.

Enterprise Value can be negative when the company's net cash is more than its Market Cap. In this case the investor is basically getting the company for free and get paid for that.

1. EV/EBIT ratio is calculated as enterprise value divided by its EBIT.

Honda Motor Co Ltd's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=93613.740/9416.92867824
=9.94

Honda Motor Co Ltd's current Enterprise Value is $93,614 Mil.
Honda Motor Co Ltd's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 2767.74094953 (Jun. 2016 ) + 2688.67595494 (Sep. 2016 ) + 2271.83031446 (Dec. 2016 ) + 1688.68145931 (Mar. 2017 ) = $9,417 Mil.

2. EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA.

Honda Motor Co Ltd's EV/EBITDA for today is:

Honda Motor Co Ltd's current Enterprise Value is $93,614 Mil.
Honda Motor Co Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2017 was 4353.63153044 (Jun. 2016 ) + 4270.57021564 (Sep. 2016 ) + 3684.84483798 (Dec. 2016 ) + 3303.45875049 (Mar. 2017 ) = $15,613 Mil.

3. EV/Revenue ratio is calculated as enterprise value divided by its Revenue.

Honda Motor Co Ltd's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=93613.740/128523.110172
=0.73

Honda Motor Co Ltd's current Enterprise Value is $93,614 Mil.
Honda Motor Co Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2017 was 32953.9662215 (Jun. 2016 ) + 32057.6749066 (Sep. 2016 ) + 30182.1150519 (Dec. 2016 ) + 33329.3539917 (Mar. 2017 ) = $128,523 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Related Terms

Market Cap, Preferred Stock, Long-Term Debt & Capital Lease Obligation, Cash and Cash Equivalents, Current Portion of Long-Term Debt


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Honda Motor Co Ltd Annual Data

Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15Mar16Mar17
ev 87,15984,71698,588104,098105,839108,400110,349104,47492,98397,295

Honda Motor Co Ltd Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev 102,192104,474102,63598,430101,38692,98389,29796,76797,44397,295
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