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The 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk over the past year. As of today (2026-08-08), Honda Motor Co's 1-Year Sharpe Ratio is -0.14.
Honda Motor Co (NYSE:HMC) 1-Year Sharpe Ratio Explanation
The 1-Year Sharpe Ratio inidicates the risk-adjusted return of an investment over the past year. It is calculated as the annualized result of the average monthly excess return divided by its standard deviation over the past year. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.
The greater a portfolio's Sharpe Ratio, the better its risk-adjusted performance. A negative Sharpe Ratio means the risk-free rate is greater than the portfolio’s historical or projected return, or else the portfolio's return is expected to be negative.
Honda Motor Co 1-Year Sharpe Ratio Related Terms
HMC vs TSLA, GM, F: 1-Year Sharpe Ratio Comparison
For the Auto Manufacturers subindustry, Honda Motor Co's 1-Year Sharpe Ratio, along with its competitors' market caps and 1-Year Sharpe Ratio 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 1-Year Sharpe Ratio vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Honda Motor Co's 1-Year Sharpe Ratio distribution charts can be found below:
* The bar in red indicates where Honda Motor Co's 1-Year Sharpe Ratio falls into.
The 1-Year Sharpe Ratio measures the performance of an investment such as a stock or portfolio compared to a risk-free asset. A stock / portfolio's 1-Year Sharpe Ratio can be calculated by dividing the difference between the one-year returns of the investment and the risk-free rate, by the standard deviation of the investment returns over one year.
Honda Motor Co (HMC) has a 1-Year Sharpe Ratio of -0.14 as of Aug. 08, 2026. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Honda Motor Co and its competitors.
Is Honda Motor Co's 1-Year Sharpe Ratio too high?
Honda Motor Co's current 1-Year Sharpe Ratio is -0.14. Overall, Honda Motor Co has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Honda Motor Co's 1-Year Sharpe Ratio compare to TSLA and GM?
Honda Motor Co's 1-Year Sharpe Ratio of -0.14 can be compared against companies in the Vehicles & Parts industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 1-Year Sharpe Ratio for a Vehicles & Parts company?
A good 1-Year Sharpe Ratio depends on the Vehicles & Parts industry context. However, 1-Year Sharpe Ratio 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 1-Year Sharpe Ratio mean?
A high 1-Year Sharpe Ratio can signal that a stock is expensive relative to its fundamentals. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Honda Motor Co and its competitors. Honda Motor Co's current 1-Year Sharpe Ratio is -0.14. 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 (HMC) is currently considered Fairly Valued. The stock's GF Value™ is $33.42, compared to a current price of $31.82 — trading 4.8% below its estimated fair value. The current 1-Year Sharpe Ratio is -0.14. Honda Motor Co's overall GF Score™ is 71/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 1-Year Sharpe Ratio calculated?
1-Year Sharpe Ratio is calculated from a company's financial statements. For Honda Motor Co (HMC), the current 1-Year Sharpe Ratio is -0.14 as of Aug. 08, 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 (HMC) Overvalued in 2026?
Based on GuruFocus' analysis, Honda Motor Co stock appears to be undervalued.
The current stock price of $31.82 is trading 4.8% below its estimated GF Value™ of $33.42.
GuruFocus considers Honda Motor Co to be Fairly Valued.
Key valuation signals for HMC:
1-Year Sharpe Ratio: -0.14
GF Value™: $33.42 vs. price of $31.82 (4.8% below fair value)
No single metric tells the full story. See the HMC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
71GF Score
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1-Year Sharpe Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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