Latest Ratios: P/E Ratio -13.7x · EV/EBITDA 15.3x · ROE -3.6%. (1997–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $37.0B | $32.4B | $42.2B | $60.8B | $44.9B | $48.6B | $52.1B | $39.4B | $47.8B | $62.3B | $54.5B |
| Enterprise Value | $89.2B | $8.48T | $-64314126421 | $5.19T | $3.87T | $4.43T | $4.03T | $4.78T | $4.88T | $4.60T | $4.76T |
| P/E Ratio → | -13.68 | — | 0.05 | 0.05 | 0.07 | 0.07 | 0.08 | 0.09 | 0.08 | 0.06 | 0.09 |
| P/S Ratio | 0.26 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| P/B Ratio | 0.50 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 | 0.00 | 0.01 | 0.01 | 0.01 |
| P/FCF | 10.79 | 0.06 | — | 0.44 | 0.03 | 0.04 | 0.10 | 0.10 | 0.28 | 0.15 | 0.22 |
| P/OCF | 4.97 | 0.03 | 22.04 | 0.08 | 0.02 | 0.03 | 0.05 | 0.04 | 0.06 | 0.06 | 0.06 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.37 | -0.00 | 0.25 | 0.23 | 0.30 | 0.31 | 0.32 | 0.31 | 0.30 | 0.34 |
| EV / EBITDA | 15.32 | 9.00 | -0.03 | 2.38 | 2.57 | 1.88 | 1.93 | 2.28 | 2.23 | 2.01 | 2.19 |
| EV / EBIT | — | — | -0.05 | 3.05 | 4.22 | 5.00 | 6.16 | 5.86 | 4.92 | 4.08 | 4.67 |
| EV / FCF | — | 15.29 | — | 37.45 | 2.58 | 3.60 | 7.74 | 12.63 | 29.04 | 11.09 | 19.21 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 16.5% | 16.5% | 21.5% | 21.6% | 19.7% | 20.5% | 20.7% | 20.6% | 20.8% | 21.9% | 22.4% |
| Operating Margin | -1.9% | -1.9% | 5.6% | 6.8% | 4.6% | 6.0% | 5.0% | 4.2% | 4.6% | 5.4% | 6.0% |
| Net Profit Margin | -1.9% | -1.9% | 3.9% | 5.4% | 3.9% | 4.9% | 5.0% | 3.1% | 3.8% | 6.9% | 4.4% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -3.6% | -3.6% | 6.5% | 9.0% | 5.8% | 7.0% | 7.4% | 5.4% | 7.3% | 13.4% | 8.4% |
| ROA | -1.4% | -1.4% | 2.8% | 4.1% | 2.7% | 3.1% | 3.1% | 2.2% | 3.1% | 5.5% | 3.3% |
| ROIC | -2.0% | -2.0% | 5.9% | 6.2% | 3.8% | 4.6% | 3.8% | 3.6% | 4.2% | 5.0% | 5.2% |
| ROCE | -1.9% | -1.9% | 5.6% | 7.0% | 4.3% | 5.1% | 4.3% | 4.4% | 5.2% | 6.1% | 6.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.11 | 1.11 | 0.35 | 0.78 | 0.66 | 0.75 | 0.72 | 0.89 | 0.86 | 0.83 | 0.90 |
| Debt / EBITDA | 14.36 | 14.36 | 2.26 | 4.63 | 5.07 | 3.43 | 3.23 | 3.54 | 3.34 | 2.97 | 3.13 |
| Net Debt / Equity | — | 0.69 | -0.01 | 0.39 | 0.33 | 0.41 | 0.42 | 0.57 | 0.56 | 0.55 | 0.62 |
| Net Debt / EBITDA | 8.96 | 8.96 | -0.05 | 2.36 | 2.54 | 1.86 | 1.91 | 2.26 | 2.20 | 1.99 | 2.16 |
| Debt / FCF | — | 15.23 | — | 37.01 | 2.55 | 3.56 | 7.64 | 12.53 | 28.76 | 10.94 | 18.99 |
| Interest Coverage | -4.96 | -4.96 | 25.00 | 28.54 | 25.36 | 52.44 | 5007.45 | 3587.38 | 75.10 | 86.97 | 81.75 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.28 | 1.28 | 1.36 | 1.43 | 1.44 | 1.47 | 1.33 | 1.26 | 1.23 | 1.23 | 1.21 |
| Quick Ratio | 1.03 | 1.03 | 1.07 | 1.13 | 1.11 | 1.15 | 1.06 | 0.99 | 0.96 | 0.96 | 0.96 |
| Cash Ratio | 0.50 | 0.50 | 0.55 | 0.62 | 0.61 | 0.65 | 0.53 | 0.49 | 0.44 | 0.44 | 0.42 |
| Asset Turnover | — | 0.69 | 0.70 | 0.69 | 0.69 | 0.61 | 0.60 | 0.73 | 0.78 | 0.79 | 0.74 |
| Inventory Turnover | 7.59 | 7.59 | 6.89 | 6.56 | 6.26 | 6.03 | 6.75 | 7.59 | 7.93 | 7.88 | 7.97 |
| Days Sales Outstanding | — | 68.65 | 65.91 | 67.87 | 63.89 | 64.98 | 22.22 | 61.41 | 63.06 | 62.76 | 68.91 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 4.9% | 100.0% | 5.4% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
| Payout Ratio | — | — | 0.3% | 21.8% | 32.8% | 26.6% | 22.1% | 43.2% | 31.8% | 16.4% | 26.3% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | 1978.6% | 1820.1% | 1449.7% | 1454.7% | 1260.8% | 1158.2% | 1276.6% | 1701.1% | 1130.5% |
| FCF Yield | 9.3% | 1712.6% | — | 227.9% | 3330.4% | 2531.4% | 999.6% | 961.0% | 351.8% | 666.7% | 454.0% |
| Buyback Yield | 11.9% | 100.0% | 11.2% | 0.0% | 0.0% | 100.0% | 0.0% | 100.0% | 100.0% | 100.0% | 0.0% |
| Total Shareholder Yield | 16.8% | 100.0% | 16.6% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
| Shares Outstanding | — | $1.3B | $1.6B | $1.6B | $1.7B | $1.7B | $1.7B | $1.8B | $1.8B | $1.8B | $1.8B |
Margin compression and EV transition
According to recent market data, Honda trades at a P/B of 0.47, which, when compared to Toyota's 0.88, suggests that investors are heavily discounting the company's future earnings potential due to the ongoing negative margin environment and the capital-intensive nature of its current electric vehicle transition strategy.
The negative TTM P/E ratio highlights the current earnings volatility, rendering traditional earnings-based valuation metrics temporarily uninformative for assessing long-term value. Investors should monitor whether the forward P/E of 0.10 reflects a genuine expectation of a rapid earnings recovery or merely a market reaction to depressed current-period profitability.
As reported in financial statements, Honda's gross margin contracted to 6.4% in 2026Q4, a significant deviation from the 20% levels maintained in prior quarters, indicating that the company's traditional pricing power is currently being overwhelmed by rising input costs and the heavy burden of R&D investment.
The shift to a negative operating margin of -17.3% suggests that the company is struggling to absorb the fixed costs associated with its global manufacturing footprint during this period of strategic transition. This deterioration warrants further investigation into whether these costs are structural or if they represent temporary, non-recurring charges related to the '0 Series' platform rollout.
Based on reported figures, Honda's ROIC fell to -3.6% in 2026Q4, marking a sharp reversal from the positive, albeit modest, returns observed in previous years, which suggests that the company is currently failing to generate adequate returns on its significant investments in new automotive manufacturing architectures.
The decline in ROIC reflects both the compression of operating margins and the expansion of the capital base required for electrification. This trend implies that the company's capital allocation strategy is currently in a value-destructive phase, necessitating a successful pivot to higher-margin EV models to restore historical compounding capabilities.
According to quarterly filings, Honda's cash conversion cycle extended to 77 days in 2026Q4, up from 40 days in 2024Q3, indicating that the company is experiencing increased friction in its inventory management and a potential slowdown in the velocity of its global supply chain operations.
The rise in DIO to 40 days and the lengthening of the overall cycle suggest that the company may be holding excess inventory, which could lead to future margin pressure if discounting is required to clear stock. Investors should monitor whether this efficiency loss is a temporary byproduct of the '0 Series' transition or a more permanent structural challenge.
Based on an analysis of industry metrics, the P/E ratio is the most commonly misapplied metric for Honda, as it fails to account for the significant non-cash charges and R&D intensity that currently distort the company's bottom-line earnings during its aggressive transition to electric vehicle platforms.
Using P/E to value a company undergoing such a massive structural pivot obscures the underlying cash-generating capacity of the motorcycle segment, which remains a critical, high-margin stabilizer. Analysts should instead prioritize EV/EBITDA or P/FCF to better capture the true operational performance of the business while excluding the noise of accounting-heavy R&D and impairment charges.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying HMC stock.
Honda Motor Co., Ltd.'s current P/E ratio is -13.7x. The historical average is 0.1x.
Honda Motor Co., Ltd.'s current EV/EBITDA is 15.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 2.8x.
Honda Motor Co., Ltd.'s return on equity (ROE) is -3.6%. The historical average is 10.2%.
Based on historical data, Honda Motor Co., Ltd. is trading at a P/E of -13.7x. Compare with industry peers and growth rates for a complete picture.
Honda Motor Co., Ltd.'s current dividend yield is 4.91%.
Honda Motor Co., Ltd. has 16.5% gross margin and -1.9% operating margin.
Honda Motor Co., Ltd.'s Debt/EBITDA ratio is 14.4x, indicating high leverage. A ratio above 4x may signal elevated financial risk.