Honda Motor Company. Presented By: Zach Bodine March 9, 2006. Price 52-Week High 52-Week Low Average Volume (3 months) Market Capitalization. $29.54 $30.36 $23.75 539,598 $55.55 Bil. Stock Fundamentals. Investment Recommendation. Buy/Hold. Ratios (all per share) P/E Ratio
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Presented By: Zach Bodine
March 9, 2006
Automotive Manufacturers – Major
Over 9 month span
Honda generated 59% of its automobile profit from the North America alone, which was an increase of 2.5% from a year ago.
However, Asia led in Motorcycle sales with 27.5%, while N.A. had 25.5%. This was opposite of a year ago.
Sales for the last 9 months ended Dec 30, 2005 totaled $60.9B, and Sales for all of 2005 totaled $80.5B.
Honda’s principal automobile products include passenger cars under:
Legend, Accord, Civic,
City, Fit Saloon, Acura RL, Acura TL, and Acura TSX brands
Multiwagons, Minivans, Sport utility vehicle, and Sports coupe under:
Elysion, Odyssey, Step Wagon, Edix, FR-V, Stream, Fit, Jazz, Pilot, Element, CR-V, Acura MDX, and Acura RSX brands
Acura TL (Honda)
Infiniti M35 (Nissan)
Toyota Highlander Hybrid
- Research focus on: robotics technology, automotive safety, ultra lightweight products, and fuel cell technology
- Deriving automotive fuel from plants.
Staff composed of 22 personnel. Two director positions and one auditor assigned annually outside the company.
Temporary directors are paid according to how well the Company performs during their tenor.
Beta = .46
Risk Free Rate = .486
Avg. Market Risk = 11%
Re = Rf + B(Equity Risk Premium)
Re = .0486+.46(.11-.0486) =7.68%
Owner earnings= $3.14B
Growth rate = 4%
Second Stage Growth rate = 2.5%
Estimated Intrinsic Value= $39.11