Honda Motor Co., Ltd. (HMC) P/E Ratio History
Historical price-to-earnings valuation from 2006 to 2026
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Valuation Context
How does the current P/E compare to historical and market benchmarks?
P/E Ratio Analysis
As of February 28, 2026, Honda Motor Co., Ltd. (HMC) trades at a price-to-earnings ratio of 8.8x, with a stock price of $30.16 and trailing twelve-month earnings per share of $380.37.
The current P/E is 14331% above its 5-year average of 0.1x. Over the past five years, HMC's P/E has ranged from a low of 0.0x to a high of 0.1x, placing the current valuation at the 100th percentile of its historical range.
Compared to the Consumer Cyclical sector median P/E of 18.8x, HMC trades at a 53% discount to its sector peers. The sector includes 304 companies with P/E ratios ranging from 0.1x to 189.6x.
The PEG ratio of 0.56 (P/E divided by -21% EPS growth) suggests the stock may be undervalued relative to its earnings growth. Peter Lynch popularized the rule that a PEG below 1.0 indicates an attractive entry point.
Relative to the broader market, HMC trades at a notable discount to the S&P 500 median P/E of 26.2x. Investors should consider the company's growth prospects, competitive position, and earnings quality when evaluating whether the current valuation is justified.
For a comprehensive intrinsic value estimate using discounted cash flow analysis, see our HMC DCF Valuation Calculator →
Note: P/E ratio is just one valuation metric. It does not account for balance sheet strength, cash flow quality, or growth sustainability. Always conduct comprehensive due diligence before making investment decisions.
Peer Comparison
P/E metrics vs. Global mass-market automakers peers
| Company | Market Cap | P/E Ratio | PEG Ratio | EPS Growth (1Y) |
|---|---|---|---|---|
TMToyota Motor Corporation | $316B | 10.5 | 0.52Best | -2%Best |
GMGeneral Motors Company | $71B | 24.1 | - | -49% |
HMCHonda Motor Co., Ltd. | $39B | 8.8 | 0.56 | -21% |
STLAStellantis N.V. | $23B | 3.7Lowest | 2.74 | -69% |
Peers sorted by market capitalization. P/E below peers may indicate undervaluation or lower growth expectations. Consider PEG ratio for growth-adjusted comparison.
Historical P/E Data
Quarterly P/E ratios calculated from closing price and TTM EPS
| Quarter | Date | Price | TTM EPS | P/E Ratio | vs Avg |
|---|---|---|---|---|---|
| FY2026 Q3 | Wed Dec 31 2025 00:00:00 GM | $29.48 | $359.73 | 0.1x | -56% |
| FY2026 Q2 | $30.80 | $438.18 | 0.1x | -63% | |
| FY2026 Q1 | Mon Jun 30 2025 00:00:00 GM | $28.83 | $419.19 | 0.1x | -63% |
| FY2025 Q4 | Mon Mar 31 2025 00:00:00 GM | $27.13 | $524.22 | 0.1x | -73% |
| FY2025 Q3 | $28.55 | $651.45 | 0.0x | -77% | |
| FY2025 Q2 | Mon Sep 30 2024 00:00:00 GM | $31.73 | $611.31 | 0.1x | -72% |
| FY2025 Q1 | Sun Jun 30 2024 00:00:00 GM | $32.24 | $702.57 | 0.0x | -76% |
| FY2024 Q4 | Sun Mar 31 2024 00:00:00 GM | $37.23 | $676.20 | 0.1x | -71% |
| FY2024 Q3 | Sun Dec 31 2023 00:00:00 GM | $30.91 | $570.36 | 0.1x | -71% |
| FY2024 Q2 | Sat Sep 30 2023 00:00:00 GM | $33.64 | $558.72 | 0.1x | -68% |
| FY2024 Q1 | Fri Jun 30 2023 00:00:00 GM | $30.31 | $515.10 | 0.1x | -69% |
| FY2023 Q4 | Fri Mar 31 2023 00:00:00 GM | $26.49 | $383.28 | 0.1x | -63% |
Average P/E for displayed period: 0.2x
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Start ComparisonFrequently Asked Questions
Is HMC stock overvalued or undervalued?
HMC trades at 8.8x P/E, above its 5-year average of 0.1x. The 100th percentile ranking indicates a premium to historical valuation.
How does HMC's valuation compare to peers?
Honda Motor Co., Ltd. P/E of 8.8x compares to sector median of 18.8x. The discount suggests lower growth expectations or higher risk.
What is HMC's PEG ratio?
HMC PEG ratio is 0.56. Below 1.0 indicates valuation is supported by earnings growth rate. Historical P/E data spans 2006-2026.