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Honda Motor Co. Ltd. (HMC) | Enterprise Value to EBITDA (EV/EBITDA)

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

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Honda Motor Co. Ltd., EBITDA calculation

USD $ in millions, translated from JPY ¥

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  12 months ended Mar 31, 2011 Mar 31, 2010 Mar 31, 2009 Mar 31, 2008 Mar 31, 2007 Mar 31, 2006
chart Net income attributable to Honda Motor Co., Ltd.
chart Add: Net income attributable to noncontrolling interests
chart Add: Interest expense
chart Add: Income tax expense (benefit)
chart Earnings before interest and tax (EBIT)
chart Add: Depreciation
chart Earnings before interest, tax, depreciation and amortization (EBITDA)
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 2009 to 2010 and from 2010 to 2011.

EV to EBITDA Ratio, Current

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Honda Motor Co. Ltd., current EV/EBITDA

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

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.

EV to EBITDA Ratio, Historical

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Honda Motor Co. Ltd., EV/EBITDA calculation

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    Mar 31, 2011 Mar 31, 2010 Mar 31, 2009 Mar 31, 2008 Mar 31, 2007 Mar 31, 2006
  Selected Financial Data (USD $ in millions, translated from JPY ¥)
chart Enterprise value (EV)
chart Earnings before interest, tax, depreciation and amortization (EBITDA)
  EV/EBITDA, Comparison to Industry
chart Honda Motor Co. Ltd.1
  Industry, Consumer Goods

2011 Calculations

1 EV/EBITDA = EV ÷ EBITDA
= ÷ =

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 2009 to 2010 and from 2010 to 2011.

May 23, 2012

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