Honda Motor ADR (HMC) is fairly valued and Toyota Motor Corp ADR (TM) is slightly undervalued.
Against our estimates of intrinsic value, TM trades at the wider discount: a margin of safety of +8%, against -5% for HMC.
Values as of the 22 Sept 2026 close.
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
Discounting its cash flows at 6.8% (average of 3 methods) values the shares at $207.90; the price of $192.06 is 8% below that value, and 84% of that value comes from beyond year five.
Leak Score 30/100 on 3 of 12 signals
| Metric | HMC | TM |
|---|---|---|
| Verdict | Fairly valued | Slightly undervalued |
| Price | $32.42 | $192.06 |
| Intrinsic value | $31.00 | $207.90 |
| Margin of safety | -5% | +8% |
| Leak Score | 0/100 (2/12) | 30/100 (3/12) |
| Market cap | $42.1B | $227.4B |
| Revenue growth, 5 years | 3.1% | 5.6% |
| Operating margin | -0.5% | 7.0% |
| Net margin | -0.7% | 8.6% |
| Return on equity | -1.4% | 12.1% |
| Debt to equity | 1.14 | 1.18 |
| P/E | — | 8.5x |
| Forward P/E | 7.8x | 8.7x |
| P/B | 0.6x | 1.0x |
| Dividend yield | 4.2% | 3.4% |