Honda Motor Co Stock Market Value
| HMC Stock | USD 34.45 0.26 0.75% |
| Symbol | Honda |
Honda Motor Price To Book Ratio
Is Honda's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Honda. If investors know Honda will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Honda listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.081 | Dividend Share 49 | Earnings Share 3.71 | Revenue Per Share 11.8 K | Quarterly Revenue Growth 0.214 |
The market value of Honda Motor is measured differently than its book value, which is the value of Honda that is recorded on the company's balance sheet. Investors also form their own opinion of Honda's value that differs from its market value or its book value, called intrinsic value, which is Honda's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Honda's market value can be influenced by many factors that don't directly affect Honda's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Honda's value and its price as these two are different measures arrived at by different means. Investors typically determine if Honda is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Honda's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Honda 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Honda's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Honda.
| 04/25/2023 |
| 04/19/2024 |
If you would invest 0.00 in Honda on April 25, 2023 and sell it all today you would earn a total of 0.00 from holding Honda Motor Co or generate 0.0% return on investment in Honda over 360 days. Honda is related to or competes with GM, Stellantis, Ferrari NV, Ford, Porsche Automobile, Toyota, and Volkswagen. Honda Motor Co., Ltd. develops, manufactures, and distributes motorcycles, automobiles, power products, and other produc... More
Honda Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Honda's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Honda Motor Co upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.17 | |||
| Information Ratio | 0.0403 | |||
| Maximum Drawdown | 5.29 | |||
| Value At Risk | (2.04) | |||
| Potential Upside | 2.33 |
Honda Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Honda's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Honda's standard deviation. In reality, there are many statistical measures that can use Honda historical prices to predict the future Honda's volatility.| Risk Adjusted Performance | 0.0655 | |||
| Jensen Alpha | 0.0507 | |||
| Total Risk Alpha | (0.01) | |||
| Sortino Ratio | 0.0408 | |||
| Treynor Ratio | 0.112 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Honda's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Honda Motor Backtested Returns
We consider Honda very steady. Honda Motor holds Efficiency (Sharpe) Ratio of 0.0832, which attests that the entity had a 0.0832% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Honda Motor, which you can use to evaluate the volatility of the firm. Please check out Honda's Downside Deviation of 1.17, market risk adjusted performance of 0.122, and Risk Adjusted Performance of 0.0655 to validate if the risk estimate we provide is consistent with the expected return of 0.0962%. Honda has a performance score of 6 on a scale of 0 to 100. The company retains a Market Volatility (i.e., Beta) of 0.95, which attests to possible diversification benefits within a given portfolio. Honda returns are very sensitive to returns on the market. As the market goes up or down, Honda is expected to follow. Honda Motor right now retains a risk of 1.16%. Please check out Honda total risk alpha, downside variance, daily balance of power, as well as the relationship between the maximum drawdown and skewness , to decide if Honda will be following its current trending patterns.
Auto-correlation | 0.73 |
Good predictability
Honda Motor Co has good predictability. Overlapping area represents the amount of predictability between Honda time series from 25th of April 2023 to 22nd of October 2023 and 22nd of October 2023 to 19th of April 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Honda Motor price movement. The serial correlation of 0.73 indicates that around 73.0% of current Honda price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.73 | |
| Spearman Rank Test | 0.7 | |
| Residual Average | 0.0 | |
| Price Variance | 5.4 |
Honda Motor lagged returns against current returns
Autocorrelation, which is Honda stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Honda's stock expected returns. We can calculate the autocorrelation of Honda returns to help us make a trade decision. For example, suppose you find that Honda has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Honda regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Honda stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Honda stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Honda stock over time.
Current vs Lagged Prices |
| Timeline |
Honda Lagged Returns
When evaluating Honda's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Honda stock have on its future price. Honda autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Honda autocorrelation shows the relationship between Honda stock current value and its past values and can show if there is a momentum factor associated with investing in Honda Motor Co.
Regressed Prices |
| Timeline |
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Try AI Portfolio ArchitectCheck out Honda Correlation, Honda Volatility and Honda Alpha and Beta module to complement your research on Honda. You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Complementary Tools for Honda Stock analysis
When running Honda's price analysis, check to measure Honda's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Honda is operating at the current time. Most of Honda's value examination focuses on studying past and present price action to predict the probability of Honda's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Honda's price. Additionally, you may evaluate how the addition of Honda to your portfolios can decrease your overall portfolio volatility.
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Honda technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.