HON Fair Value Estimate
$125.9542.7% overvalued
Blended fair value estimate based on DCF, Graham Number, and earnings-based models.
Honeywell International Inc
Exchange: NASDAQSector: IndustrialsIndustry: Conglomerates
Honeywell is an integrated operating company serving a broad range of industries and geographies around the world, with a portfolio that is underpinned by our Honeywell Accelerator operating system and Honeywell Forge platform. As a trusted partner, we help organizations solve the world's toughest, most complex challenges, providing actionable solutions and innovations for aerospace, building automation, industrial automation, process automation, and process technology that help make the world smarter and safer as well as more secure and sustainable.
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Profit margin stands at 12.6%.
Current Price
$219.97
-1.01%GoodMoat Value
$125.95
42.7% overvaluedProfile
Valuation (TTM)
Market Cap$139.66B
P/E29.53
EV$163.24B
P/B10.04
Shares Out634.89M
P/Sales3.73
Revenue$37.44B
EV/EBITDA19.05
Honeywell International Inc (HON) Valuation
GoodMoat Analysis
Honeywell appears unfavourable from a value investing perspective, trading at a significant premium to its estimated intrinsic value with a negative margin of safety. Its valuation multiples are high relative to its negative revenue growth and the industrials sector average.
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The GoodMoat Target of $125.95 suggests the stock's current price of $225.79 is deeply overvalued, implying a negative margin of safety of approximately -79%. According to the GoodMoat framework, a margin of safety below 10% is considered unfavourable, and this figure is far outside that range. The forward P/E of 30.3x is significantly higher than the typical industrials sector average (often in the low-to-mid 20s), and this premium is difficult to justify given the company's negative revenue growth of -3.3% YoY. A PEG ratio cannot be calculated due to the negative growth, but the combination of high P/E and declining revenue is a classic warning sign. While Honeywell exhibits some quality metrics like a strong ROE of 34.0% and a solid operating margin of 18.2%, the valuation assessment is overwhelmingly negative. The stock is expensive relative to both its own fair value estimate and its current growth profile, offering no margin of safety for a value-oriented investor. Analysis based on data as of 2024-05-15.
HON Valuation Metrics
FCF$5.45B
FCF Growth Rate-1.85%
EPS Growth (CAGR)-4.27%
WACC10.00%
Fair Value Models
Graham Number, PEG-based, and Earnings-based models
View Fair Value →HON Valuation & Fair Value Analysis
Honeywell International Inc (HON) valuation analysis using multiple fair value methodologies. GoodMoat calculates a blended fair value target using discounted cash flow (DCF) analysis, the Graham Number, and earnings-based valuation models.
The GoodMoat Fair Value target for Honeywell International Inc is $125.95. The current stock price is $219.97, suggesting the stock is 74.7% overvalued.
The price-to-earnings (P/E) ratio is 29.53. Price-to-book ratio is 10.04. Price-to-sales ratio is 3.73. Enterprise value to EBITDA is 19.05. PEG ratio is -0.27.
GoodMoat's valuation models include the Graham Number (based on EPS and book value), an earnings-based model (discounted future EPS), and a PEG-adjusted valuation. The three models are averaged to produce a blended fair value estimate. Use these tools alongside the DCF calculator and reverse DCF to form a comprehensive view of Honeywell International Inc's intrinsic value.