General Motors Company (GM) is overvalued and Honda Motor ADR (HMC) is fairly valued.
Both trade above our estimate of their intrinsic value. HMC is the closer of the two: -5%, against -40% for GM.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 8.1% (average of 3 methods) values the shares at $59.50; the price of $83.45 is 40% above that value, and 79% of that value comes from beyond year five.
Leak Score 42/100 on 10 of 12 signals
A 0.7x revenue multiple, discounted for its losses, values the shares at $31.00; the price of $32.42 is 5% above that value.
Leak Score 0/100 on 2 of 12 signals
| Metric | GM | HMC |
|---|---|---|
| Verdict | Overvalued | Fairly valued |
| Price | $83.45 | $32.42 |
| Intrinsic value | $59.50 | $31.00 |
| Margin of safety | -40% | -5% |
| Leak Score | 42/100 (10/12) | 0/100 (2/12) |
| Market cap | $73.2B | $42.1B |
| Revenue growth, 5 years | 8.6% | 3.1% |
| Operating margin | 1.0% | -0.5% |
| Net margin | 1.0% | -0.7% |
| Return on equity | 3.0% | -1.4% |
| Debt to equity | 2.06 | 1.14 |
| P/E | 42.1x | — |
| Forward P/E | 5.5x | 7.8x |
| P/B | 1.2x | 0.6x |
| Dividend yield | 0.9% | 4.2% |