Honda Motor ADR (HMC) is fairly valued and Tesla Inc (TSLA) is overvalued.
Both trade above our estimate of their intrinsic value. HMC is the closer of the two: -5%, against -1287% for TSLA.
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 13.2% (average of 2 methods) values the shares at $27.32; the price of $378.90 is 1287% above that value.
Leak Score 48/100 on 10 of 12 signals
| Metric | HMC | TSLA |
|---|---|---|
| Verdict | Fairly valued | Overvalued |
| Price | $32.42 | $378.90 |
| Intrinsic value | $31.00 | $27.32 |
| Margin of safety | -5% | -1287% |
| Leak Score | 0/100 (2/12) | 48/100 (10/12) |
| Market cap | $42.1B | $1.50T |
| Revenue growth, 5 years | 3.1% | 24.6% |
| Operating margin | -0.5% | 4.6% |
| Net margin | -0.7% | 3.7% |
| Return on equity | -1.4% | 4.6% |
| Debt to equity | 1.14 | 0.19 |
| P/E | — | 352.0x |
| Forward P/E | 7.8x | 164.6x |
| P/B | 0.6x | 17.2x |
| Dividend yield | 4.2% | — |