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Honda Motor CoFRA:HDM +3.11%72 5-Year Yield-on-Cost % is 11.41 as of Jul. 17, 2026, which is 33% above its 10-year median of 8.59. GuruFocus rates FRA:HDM with a GF Score™ of 72/100 and a GF Value™ of €10.33 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 868 Vehicles & Parts companies, Honda Motor Co ranks better than 84.79% on this metric.
Honda Motor Co's yield on cost for the quarter that ended in Mar. 2026 was 11.41.
The historical rank and industry rank for Honda Motor Co's 5-Year Yield-on-Cost % or its related term are showing as below:
FRA:HDM'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 4.98 Med: 8.59 Max: 14.29
Current: 11.41
During the past 13 years, Honda Motor Co's highest Yield on Cost was 14.29. The lowest was 4.98. And the median was 8.59.
FRA:HDM's 5-Year Yield-on-Cost % is ranked better than 84.79% of 868
companies
in the Vehicles & Parts industry
Industry Median: 3.08
vs FRA:HDM: 11.41
Honda Motor Co (FRA:HDM) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Honda Motor Co 5-Year Yield-on-Cost % Related Terms
FRA:HDM vs TSLA, GM, F: 5-Year Yield-on-Cost % Comparison
For the Auto Manufacturers subindustry, Honda Motor Co's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Honda Motor Co's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Honda Motor Co's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of Honda Motor Co is calculated as
Honda Motor Co (FRA:HDM) has a 5-Year Yield-on-Cost % of 11.41 as of Jul. 17, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Honda Motor Co and its competitors. This is 33% above median its historical median of 8.59. Over the past decade, Honda Motor Co's 5-Year Yield-on-Cost % has ranged from 4.98 to 14.29. According to the industry distribution chart, Honda Motor Co ranks #132 out of 868 companies in the Vehicles & Parts industry, placing it in the top 15.2%.
Is Honda Motor Co's 5-Year Yield-on-Cost % too high?
Honda Motor Co's current 5-Year Yield-on-Cost % of 11.41 is 33% above median its 10-year median of 8.59. Over the past 10 years, this metric has ranged from a low of 4.98 to a high of 14.29. The Vehicles & Parts industry median 5-Year Yield-on-Cost % is 3.08. Honda Motor Co's value of 11.41 is 270.5% above this industry median. Based on the distribution chart, Honda Motor Co ranks #132 out of 868 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Honda Motor Co has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Honda Motor Co's 5-Year Yield-on-Cost % compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Honda Motor Co ranks #132 out of 868 companies for 5-Year Yield-on-Cost %. This places Honda Motor Co in the top 15% of its industry — outperforming the majority of peers. The industry median 5-Year Yield-on-Cost % is 3.08. Honda Motor Co's value of 11.41 is 270.5% above this benchmark. Historically, Honda Motor Co's own 5-Year Yield-on-Cost % has ranged from 4.98 to 14.29 over the past decade. While the company's 10-year median is 8.59 vs. the industry median of 3.08, Honda Motor Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for a Vehicles & Parts company?
The median 5-Year Yield-on-Cost % among Vehicles & Parts companies is 3.08, based on 868 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Honda Motor Co's current 5-Year Yield-on-Cost % of 11.41 is 270.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Honda Motor Co and its competitors. For the Vehicles & Parts industry, the median 5-Year Yield-on-Cost % is 3.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Honda Motor Co's current 5-Year Yield-on-Cost % is 11.41, which is 33% above median its own 10-year median of 8.59. 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 €10.33, compared to a current price of €8.33 — trading 19.4% below its estimated fair value. The current 5-Year Yield-on-Cost % is 11.41, which is 33% above median its 10-year median of 8.59 and 270.5% above the Vehicles & Parts industry median of 3.08. Honda Motor Co's overall GF Score™ is 72/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Honda Motor Co (FRA:HDM), the current 5-Year Yield-on-Cost % is 11.41 as of Jul. 17, 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 €8.33 is trading 19.4% below its estimated GF Value™ of €10.33.
GuruFocus considers Honda Motor Co to be Modestly Undervalued.
Key valuation signals for FRA:HDM:
5-Year Yield-on-Cost %: 11.41 (33% above median its 10-year median of 8.59)
GF Value™: €10.33 vs. price of €8.33 (19.4% below fair value)
Industry Position: 270.5% above the Vehicles & Parts median (#132 of 868)
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.
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.
72GF Score
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5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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