P/E ratio for Honda (HMC)
P/E ratio as of May 2023 (TTM): 9.08
According to Honda's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 9.08059. At the end of 2020 the company had a P/E ratio of 12.2.
P/E ratio history for Honda from 2001 to 2022
PE ratio at the end of each year
| Year | P/E ratio | Change |
|---|---|---|
| 2020 | 12.2 | 6.58% |
| 2019 | 11.4 | 61% |
| 2018 | 7.09 | 7.87% |
| 2017 | 6.57 | -49.26% |
| 2016 | 12.9 | -0.36% |
| 2015 | 13.0 | 35.34% |
| 2014 | 9.60 |
P/E ratio for similar companies or competitors
| Company | P/E ratio | P/E ratio differencediff. | Country |
|---|---|---|---|
 Toyota TM | 8.93 | -1.71% | 🇯🇵 Japan |
 General Motors GM | 4.96 | -45.38% | 🇺🇸 USA |
 Ford F | -31.9 | -451.82% | 🇺🇸 USA |
 Tata Motors TATAMOTORS.NS | -18.3 | -301.72% | 🇮🇳 India |
How to read a P/E ratio?
The Price/Earnings ratio measures the relationship between a company's stock price and its earnings per share. A low but positive P/E ratio stands for a company that is generating high earnings compared to its current valuation and might be undervalued. A company with a high negative (near 0) P/E ratio stands for a company that is generating heavy losses compared to its current valuation.
Companies with a P/E ratio over 30 or a negative one are generaly seen as "growth stocks" meaning that investors typically expect the company to grow or to become profitable in the future.
Companies with a positive P/E ratio bellow 10 are generally seen as "value stocks" meaning that the company is already very profitable and unlikely to strong growth in the future.