How Much Can Gaining Market Share In Japan Add To Honda’s Stock Price?

-4.95%
Downside
34.14
Market
32.45
Trefis
HMC: Honda Motor logo
HMC
Honda Motor

Honda Motor Co. ‘s (NYSE: HMC) market share in Japan has stayed around 13%-14% for the last few years. Japan is the second biggest automotive market for the company after the U.S. This makes it highly important for the company. The table below models a scenario in which the company increases its market at a rate of 20 basis points per year over the next six years. This could result in an 11% increase in our valuation for the Japanese auto maker.

honda nihon impact

 

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com

2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Honda Motor

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