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Growth expectations and risk play a big role in assessing what constitutes a fair PE ratio. Companies expected to grow faster or with lower risk generally justify higher PE ratios, while uncertainty or slow growth warrants a lower ratio.

Honda currently trades at 9.28x, considerably below the automotive industry average of 18.42x and also below the peer average of 10.74x. At first glance, this points to a potential bargain, but benchmarks like industry and peer averages do not always consider what makes Honda unique.

This is where Simply Wall St’s Fair Ratio comes in. This proprietary metric calculates a tailored PE ratio for Honda based on factors such as earnings growth, sector outlook, profit margins, market cap, and company-specific risks. By weighing these variables, the Fair Ratio provides a more nuanced and individualized valuation benchmark than broad industry comparisons.

Honda’s Fair PE Ratio is 17.42x, well above its current multiple of 9.28x. This comparison suggests that the stock may be significantly undervalued relative to its fundamentals and future potential.

Result: UNDERVALUED

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Earlier we mentioned that there is an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is your own story or perspective on a company, connecting your assumptions about Honda Motor’s future revenue, earnings, and margins to a justified fair value. This makes the numbers meaningful and personal. Narratives bridge Honda’s business story to financial forecasts and, ultimately, to whether a stock is cheap or expensive. This empowers you to move beyond one-size-fits-all comparisons. On Simply Wall St’s Community page, creating or browsing Narratives is easy and accessible, with millions of investors using them to align their decisions with both quantitative data and real-world developments.

By building a Narrative, you can compare your estimated fair value for Honda to the current market price and decide when to buy or sell. Narratives update dynamically as new news or earnings emerge, so you always have the latest context for your decision. For example, one investor might focus on Honda’s expanding motorcycle sales and strategic partnerships, arriving at a robust fair value near ¥1,900. Another might highlight EV challenges and competitive risks, estimating value much lower, around ¥1,400. Narratives let you see these different perspectives, so you can invest with clarity and confidence.

Do you think there’s more to the story for Honda Motor? Head over to our Community to see what others are saying!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include 7267.T.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

UiPath (PATH) stock has recently caught investors’ attention as its share price responded to shifting market sentiment. While the company has delivered steady revenue growth, its performance over the past month has seen some volatility. This has warranted a closer look.

See our latest analysis for UiPath.

UiPath’s share price has surged 28% in the past 90 days, showing real momentum despite a recent 16% pullback over the last month. While some investors reacted to shifting market sentiment in the short term, the stock’s one-year total shareholder return of 13% highlights longer-term resilience.

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With recent price swings and UiPath’s fundamentals in focus, the key question is whether the stock is trading below its intrinsic value or if the market has already factored in all future growth, which could leave little room for upside.

UiPath’s most followed narrative prices the company at $13.71 per share, suggesting it is trading slightly above its calculated fair value compared to the $14.03 last close. Expectations on product partnerships and next-generation AI features play a pivotal role in this perspective.

New product launches such as Agent Builder and Agentic Orchestration, along with strategic partnerships like with Microsoft and Deloitte, are positioned to expand market opportunities, potentially increasing earnings through higher-value deals. UiPath’s commitment to cloud offerings, with over $975 million in cloud ARR, positions the company to capitalize on AI-driven products and services, which could contribute to revenue growth and improved gross margins.

Read the complete narrative.

Curious about the specific metrics that power this slight premium? Find out which ambitious profit margins and bold revenue targets are behind this valuation. You will want to see what financial leaps the narrative expects UiPath to make and which turning points matter most for shareholders.

Result: Fair Value of $13.71 (OVERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, caution around global economic uncertainty and slower than expected adoption of new agentic automation products could quickly challenge these optimistic assumptions.

Find out about the key risks to this UiPath narrative.

While the most-followed narrative sees UiPath as slightly overvalued based on projected growth and peer comparisons, our SWS DCF model points in a different direction. According to this long-term cash flow method, UiPath is actually trading below its estimated fair value, which could present a hidden opportunity for patient investors. Which perspective tells the real story?

Look into how the SWS DCF model arrives at its fair value.

If you see the story differently or want to investigate the numbers for yourself, it only takes a few minutes to craft your own perspective, your way. Do it your way

A great starting point for your UiPath research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

Don’t let new opportunities pass you by. The Simply Wall Street Screener is your gateway to fresh investment angles that can shape your portfolio for the better.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include PATH.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Ondas Holdings, following its third-quarter earnings announcement, is seeing renewed attention from investors due to a major revenue surge led by its autonomous systems business. The company’s revenue growth beat expectations.

See our latest analysis for Ondas Holdings.

The powerful rally following Ondas Holdings’ standout Q3 revenue has caught investor attention, with the share price surging 23.6% over the past week and 9.4% in just one day after earnings. Despite a 24.5% dip over the last month, the stock is still up 86% for the past quarter and boasts a staggering 1-year total shareholder return of over 900%. The combination of new acquisitions, raised revenue forecasts, and a record backlog are fueling bullish sentiment and building momentum well beyond short-term swings.

If all this growth talk has you curious about where the next breakthrough might come from, now is the perfect time to broaden your search and discover fast growing stocks with high insider ownership

But is Ondas Holdings still undervalued after such a dramatic run-up, or have investors already priced in all of its future growth? Is there a real buying opportunity here, or has the market moved ahead of the fundamentals?

The narrative sets Ondas Holdings’ fair value at $9.50, which stands well above the last close of $7.18. This gap spotlights a potential valuation disconnect between narrative projections and the current market price.

“Bullish analysts highlight long-term growth opportunities in Ondas’ Autonomous Systems business, pointing to recent successes and new initiatives in the aerospace and defense sectors.”

Read the complete narrative.

Want to know what makes this number so compelling? The fair value hinges on bold future revenue forecasts and a profit trajectory typically reserved for market leaders. Dig deeper to discover the exact assumptions driving this ambitious price target, where outsized growth aspirations collide with hard financial projections.

Result: Fair Value of $9.50 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, significant risks remain, including volatile margins and reliance on defense contracts. These factors could quickly shift investor sentiment if challenges re-emerge.

Find out about the key risks to this Ondas Holdings narrative.

Looking at Ondas Holdings through the lens of its price-to-book ratio paints a very different picture. The company’s ratio stands at 27.6x, far above the US Communications industry average of 1.9x and its peer average of 1.8x. Such a steep premium suggests that investors are expecting substantial future growth, but it also highlights considerable valuation risk if those high hopes are not met. Does this lofty multiple reflect real opportunity or heighten downside risk?

See what the numbers say about this price — find out in our valuation breakdown.

If you see things differently or want to dig into the numbers yourself, you can craft your own Ondas Holdings narrative in just a few minutes. Shape the story as you see fit. Do it your way

A great starting point for your Ondas Holdings research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include ONDS.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com