Honda Motor Co. Ltd. (HMC)

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Honda Motor Co. Ltd., EBITDA calculation

USD $ in millions, translated from JPY ￥

12 months ended	Mar 31, 2012	Mar 31, 2011	Mar 31, 2010	Mar 31, 2009	Mar 31, 2008	Mar 31, 2007
Net income attributable to Honda Motor Co., Ltd.	2,573	6,423	2,885	1,395	5,989	5,018
Net income attributable to noncontrolling interests	129	353	153	142	273	170
Interest expense	126	102	135	229	166	109
Income tax expense (benefit)	1,651	2,487	1,579	1,118	3,867	2,404
Earnings before interest and tax (EBIT)	4,480	9,366	4,751	2,884	10,295	7,702
Depreciation excluding property on operating leases	3,906	4,227	4,318	4,498	4,166	3,064
Depreciation of property on operating leases	2,552	2,551	2,450	1,993	1,008	83
Earnings before interest, tax, depreciation and amortization (EBITDA)	10,937	16,145	11,519	9,375	15,469	10,849

Item	Description	The company
EBITDA	To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital.	Honda Motor Co. Ltd.'s EBITDA increased from 2010 to 2011 but then declined significantly from 2011 to 2012.

Honda Motor Co. Ltd., current EV/EBITDA

	Honda Motor Co. Ltd.	Consumer Goods
Selected Financial Data (USD $ in millions)
Enterprise value (EV)	111,010
Earnings before interest, tax, depreciation and amortization (EBITDA)	10,937
Ratio
EV/EBITDA	10.15	13.30

If company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.

Otherwise, if company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.

Honda Motor Co. Ltd., EV/EBITDA calculation

	Mar 31, 2012	Mar 31, 2011	Mar 31, 2010	Mar 31, 2009	Mar 31, 2008	Mar 31, 2007
Selected Financial Data (USD $ in millions, translated from JPY ￥)
Enterprise value (EV)¹	95,528	101,909	87,098	90,892	96,540	93,461
Earnings before interest, tax, depreciation and amortization (EBITDA)²	10,937	16,145	11,519	9,375	15,469	10,849
EV/EBITDA, Comparison to Industry
Honda Motor Co. Ltd.³	8.73	6.31	7.56	9.69	6.24	8.62
Industry, Consumer Goods	11.58	10.24	9.88	10.99	7.99	–

2012 Calculations

³ EV/EBITDA = EV ÷ EBITDA
= 95,528 ÷ 10,937 = 8.73

Ratio	Description	The company
EV/EBITDA	EV/EBITDA is a valuation indicator for the overall company rather than common stock.	Honda Motor Co. Ltd.'s EV/EBITDA ratio declined from 2010 to 2011 but then increased from 2011 to 2012 exceeding 2010 level.