7267.T · Intrinsic value
Is Honda Motor Co., Ltd. (7267.T) overvalued or undervalued?
Honda Motor Co., Ltd. (7267.T) trades at the delayed market price of ¥1,807.50 a share. That price already implies revenue growth of −1.0% a year for 5 years. TickerWorth's fair value is ¥3,419.39 a share (47% below fair value), as of Oct 19, 2026. It is a model estimate, and every input behind it is sourced below.
Model by Miraaj Patel · generated from market data · Updated Oct 19, 2026 · How these pages are made
Is 7267.T undervalued?
- Fair value
- ¥3,419.39
- Market price
- ¥1,807.50
- Upside to fair value
- +89.2%
- Verdict
- 47% below fair value
Reverse DCF: Today's price implies revenue growth of −1.0% a year for 5 years; our model assumes 8.7% a year on average over the same horizon.
What is 7267.T's TickerWorth Score?
Cheap against our estimate — but a weaker business
Compared with Consumer Cyclical companies in Japan
Its strongest point: trades below our estimate of what it's worth. Its weakest: profitability is weak.
- Value · 73 of 100
Cheaper than 73% of Consumer Cyclical companies worldwide
- Price vs worth · 100 of 100
- Quality · 22 of 100
More profitable than 22% of Consumer Cyclical companies worldwide
- Financial health · 37 of 100
Financially stronger than 37% of Consumer Cyclical companies worldwide
- Growth · 80 of 100
Growing faster than 80% of Consumer Cyclical companies worldwide
- Momentum · 94 of 100
Outperformed 94% of Consumer Cyclical companies worldwide over the past year
Confidence: Medium confidence · Scored
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7267.T DCF valuation: where the gap comes from
At a recent price of ¥1,808, Honda Motor Co., Ltd. (7267.T) trades 47% below TickerWorth's blended fair value of ¥3,419 per share — a discounted-cash-flow model cross-checked against peer multiples and asset value — meaning the market currently prices 7267.T undervalued vs our estimate of what the business is intrinsically worth. Our fair value sits above the market, an implied +89.2% move to close the gap if the business performs in line with our assumptions. This is an educational model, not a price target or a recommendation — the value moves with the inputs, which you can test yourself using the WACC slider below.
Read the full reasoning
One of the lenses behind that blended figure is a discounted-cash-flow model, which on its own values 7267.T at about ¥4,097 per share. The rest of this page walks through that DCF — its assumptions, reverse-DCF and discount-rate sensitivity — because it is the auditable anchor of the blend.
The valuation discounts Honda Motor Co., Ltd.'s projected free cash flows at a weighted-average cost of capital (WACC) of 6.1%, with a long-run terminal growth rate of 2.5%. About 85% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is unusually high — most of the answer comes from a single assumption about the far future, so treat this figure as low-confidence and lean on the multiples alongside it.
Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly -1.0% annual revenue growth for 7267.T. Our base case instead compounds to about 8.7% a year over the same forecast, so the market is pricing in slower growth than our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, 7267.T's modeled DCF value ranges from about ¥1,584 to ¥18,043 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what Honda Motor Co., Ltd. would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of 7267.T's intrinsic value. Figures update as new filings and prices come in.
Every input behind 7267.T's DCF
| Input | Value |
|---|---|
| Base-year revenueLive feed — totalRevenue (TTM) | ¥22,517,855,030,000 |
| Base EBIT marginComputed — reported operating margin exceeded the EBITDA margin (impossible); held to 3.7% so D&A stays positive | 3.7% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | 14% → 11% → 9% → 6% → 4% |
| Risk-free rateLive feed — US 10-year Treasury yield (^TNX) | 5.1% |
| BetaLive feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5) | 0.40 |
| Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC | 2.5% |
| Diluted sharesLive feed — sharesOutstanding | 3,893M |
| Market priceLast known price · as of 2026-10-19 20:14 UTC | ¥1,808 |
Change 7267.T's assumptions
The discount-rate dial and the editable model
ProChange growth, margin and WACC yourself — Pro (7-day free trial, card required).
What does Honda Motor Co., Ltd. do?
What does it do?
Honda Motor Co., Ltd. engages in the development, manufacturing, and distribution of motorcycles, automobiles, and power products in Japan, North America, Europe, Asia, and internationally. It operates in the Auto Manufacturers industry (Consumer Cyclical sector), headquartered in Japan. The company employs roughly 195,109 people.
How does it make money?
The business turns 22.5T in annual revenue into profit. Out of every $100 of sales, about $9 is left as operating profit (operating margin of 8.8%), after a 17% gross margin on the products/services it sells. After all costs, taxes and interest, -0.8% of revenue becomes bottom-line net profit.
Is it financially healthy?
Financially it looks stretched: carries moderate debt (1.1× equity), can just cover its short-term bills (1.3× current ratio), and is currently lossmaking.
7267.T insider trading
Insider filings are available for US-listed companies only.
Common questions
What is 7267.T's intrinsic value?
TickerWorth's blended fair value for Honda Motor Co., Ltd. (7267.T) is ¥3,419 per share, versus a market price of ¥1,808 (47% below fair value).
Is 7267.T overvalued or undervalued?
On our blended fair value 7267.T looks undervalued vs fair value at ¥1,808. This is an educational estimate, not advice.
What discount rate is used for 7267.T?
A WACC of 6.1% and a terminal growth rate of 2.5%.
Is Honda Motor stock undervalued?
TickerWorth's fair value for Honda Motor Co., Ltd. (7267.T) is ¥3,419.39 against a market price of ¥1,807.50. Our read: 47% below fair value. This is a model estimate, not investment advice.
Honda Motor (7267.T) DCF valuation and fair value
Our fair value for Honda Motor Co., Ltd. (7267.T) is ¥3,419.39, built on a 6.1% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into Honda Motor stock?
Today's price implies revenue growth of −1.0% a year for 5 years; our model assumes 8.7% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of ¥1,807.50. A model estimate, not investment advice.
Honda Motor (7267.T) insider trading
We have no recent SEC Form 4 insider filings on file for Honda Motor Co., Ltd. (7267.T). Form 4 covers US-listed companies only.
More stocks below our fair value
Not investment advice. TickerWorth Score is a model output.
Educational tool. Every output reflects the assumptions shown — not a prediction and not investment advice. TickerWorth is not a licensed investment adviser, and these figures are estimates from public filings and market data that can be wrong.