Discounted Cash Flow (DCF) Analysis Levered
Honda Motor Co., Ltd. (HMC)
$25.87
+0.17 (+0.66%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 15,361,146 | 15,888,617.03 | 14,931,008.97 | 13,170,518.94 | 14,552,695.89 | 14,411,186.93 | 14,271,053.99 | 14,132,283.68 | 13,994,862.77 | 13,858,778.12 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 987,671 | 775,987.98 | 979,415.06 | 1,072,378.95 | 1,679,621.95 | 1,082,485.35 | 1,071,959.37 | 1,061,535.75 | 1,051,213.48 | 1,040,991.59 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -572,489.94 | -607,806.97 | -601,257.99 | -551,136.96 | -449,226.01 | -543,322.50 | -538,039.29 | -532,807.45 | -527,626.48 | -522,495.89 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 415,181.05 | 168,181.01 | 378,157.07 | 521,241.99 | 1,230,395.95 | 539,162.85 | 533,920.09 | 528,728.30 | 523,587 | 518,495.69 |
Weighted Average Cost Of Capital
| Share price | $ 25.87 |
|---|---|
| Beta | 0.793 |
| Diluted Shares Outstanding | 1,719.96 |
| Cost of Debt | |
| Tax Rate | 33.93 |
| After-tax Cost of Debt | 0.14% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.273 |
| Total Debt | 8,102,556 |
| Total Equity | 44,495.41 |
| Total Capital | 8,147,051.41 |
| Debt Weighting | 99.45 |
| Equity Weighting | 0.55 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 15,361,146 | 15,888,617.03 | 14,931,008.97 | 13,170,518.94 | 14,552,695.89 | 14,411,186.93 | 14,271,053.99 | 14,132,283.68 | 13,994,862.77 | 13,858,778.12 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 987,671 | 775,987.98 | 979,415.06 | 1,072,378.95 | 1,679,621.95 | 1,082,485.35 | 1,071,959.37 | 1,061,535.75 | 1,051,213.48 | 1,040,991.59 |
| Capital Expenditure | -572,489.94 | -607,806.97 | -601,257.99 | -551,136.96 | -449,226.01 | -543,322.50 | -538,039.29 | -532,807.45 | -527,626.48 | -522,495.89 |
| Free Cash Flow | 415,181.05 | 168,181.01 | 378,157.07 | 521,241.99 | 1,230,395.95 | 539,162.85 | 533,920.09 | 528,728.30 | 523,587 | 518,495.69 |
| WACC | ||||||||||
| PV LFCF | 538,194.10 | 532,003.15 | 525,883.42 | 519,834.08 | 513,854.33 | |||||
| SUM PV LFCF | 2,629,769.08 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 0.18 |
| Free cash flow (t + 1) | 528,865.61 |
| Terminal Value | -29,058,549.89 |
| Present Value of Terminal Value | -28,798,429.28 |
Intrinsic Value
| Enterprise Value | -26,168,660.20 |
|---|---|
| Net Debt | 4,427,625 |
| Equity Value | -30,596,285.20 |
| Shares Outstanding | 1,719.96 |
| Equity Value Per Share | -17,788.93 |