Honda: Fair Value Estimate Under Review

We are placing the fair value estimates for Honda's Tokyo Stock Exchange shares and its New York Stock Exchange American Depository Receipt shares under review due to the company's upcoming 3-1 stock split on the TSE. Honda has previously said the first day of trading with the split will be on Oct. 2, so we expect our TSE fair value estimate to change to JPY 1,700 per share from JPY 5,100 per share absent any additional impact of time value of money or other modeling adjustments. The ADR ratio will change to three TSE shares equal to one ADR from 1:1 currently. We plan to remove the under-review status on Oct. 2 after the NYSE opens that day.