Honeywell International Inc.

WBAG:HON Stock Report

Market Cap: €143.0b

Honeywell International Valuation

Is HON undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of HON when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HON (€219.75) is trading below our estimate of fair value (€251.22)

Significantly Below Fair Value: HON is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HON?

Key metric: As HON is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for HON. This is calculated by dividing HON's market cap by their current earnings.
What is HON's PE Ratio?
PE Ratio26.4x
EarningsUS$5.68b
Market CapUS$149.95b

Price to Earnings Ratio vs Peers

How does HON's PE Ratio compare to its peers?

The above table shows the PE ratio for HON vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.2x
SIE Siemens
17.1x5.9%€140.5b
6501 Hitachi
25.3x12.2%JP¥17.0t
MMM 3M
13.6x-2.1%US$71.0b
IHC International Holding Company PJSC
32.9xn/aد.إ885.5b
HON Honeywell International
26.4x10.0%€149.9b

Price-To-Earnings vs Peers: HON is expensive based on its Price-To-Earnings Ratio (26.4x) compared to the peer average (22.2x).

Price to Earnings Ratio vs Industry

How does HON's PE Ratio compare vs other companies in the European Industrials Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
HON 26.4xIndustry Avg. 17.0xNo. of Companies6PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HON is expensive based on its Price-To-Earnings Ratio (26.4x) compared to the European Industrials industry average (17.1x).

Price to Earnings Ratio vs Fair Ratio

What is HON's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HON PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26.4x
Fair PE Ratio18.3x

Price-To-Earnings vs Fair Ratio: HON is expensive based on its Price-To-Earnings Ratio (26.4x) compared to the estimated Fair Price-To-Earnings Ratio (18.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst HON forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€219.75
€225.23
+2.5%
9.7%€284.29€187.94n/a23
Nov ’25€192.60
€208.45
+8.2%
7.0%€253.40€182.19n/a23
Oct ’25€186.40
€206.10
+10.6%
6.4%€247.53€185.20n/a24
Sep ’25€187.34
€206.66
+10.3%
6.2%€246.11€185.48n/a23
Aug ’25€187.16
€211.38
+12.9%
6.8%€259.62€189.40n/a23
Jul ’25€197.70
€212.28
+7.4%
7.5%€258.90€181.60n/a23
Jun ’25€184.04
€205.42
+11.6%
8.2%€232.23€162.56n/a23
May ’25€180.10
€207.07
+15.0%
8.0%€234.20€163.94n/a24
Apr ’25€190.70
€203.98
+7.0%
8.1%€230.28€161.19n/a24
Mar ’25€182.28
€202.25
+11.0%
8.5%€231.03€161.72n/a23
Feb ’25€179.18
€201.43
+12.4%
9.0%€230.00€161.00n/a23
Jan ’25€189.14
€196.12
+3.7%
8.1%€227.75€159.43n/a24
Dec ’24€180.94
€194.11
+7.3%
9.1%€241.23€159.30n/a24
Nov ’24€172.60
€201.66
+16.8%
9.0%€250.80€165.62€192.6024
Oct ’24€176.08
€208.50
+18.4%
7.9%€252.25€171.34€186.4025
Sep ’24€174.20
€202.81
+16.4%
8.0%€244.97€166.39€187.3425
Aug ’24€176.38
€200.18
+13.5%
7.9%€240.99€163.69€187.1625
Jul ’24€189.98
€202.86
+6.8%
7.4%€242.79€169.50€197.7024
Jun ’24€179.66
€206.79
+15.1%
7.4%€247.96€173.10€184.0424
May ’24€177.74
€200.38
+12.7%
7.7%€241.55€168.63€180.1024
Apr ’24€175.44
€204.58
+16.6%
8.0%€246.77€172.27€190.7023
Mar ’24€181.04
€207.57
+14.7%
8.0%€250.48€174.86€182.2823
Feb ’24€189.52
€201.43
+6.3%
8.7%€243.35€174.48€179.1823
Jan ’24€201.00
€204.32
+1.7%
9.2%€248.04€175.03€189.1424
Dec ’23€207.20
€204.25
-1.4%
7.6%€232.75€177.65€180.9424
Nov ’23€205.25
€212.31
+3.4%
6.3%€237.87€189.28€172.6024

Analyst Forecast: Target price is less than 20% higher than the current share price.

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