Honeywell International Inc.

NasdaqGS:HON Stock Report

Market Cap: US$148.4b

Honeywell International Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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 ($226.67) is trading below our estimate of fair value ($246.95)

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 Ratio25.9x
EarningsUS$5.68b
Market CapUS$148.39b

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 Average23.3x
13.1x-2.1%US$69.8b
BBU Brookfield Business Partners
8.5xn/aUS$5.2b
RTX RTX
33.6x15.4%US$158.3b
ETN Eaton
37.8x10.7%US$143.7b
HON Honeywell International
25.9x10.0%US$148.4b

Price-To-Earnings vs Peers: HON is expensive based on its Price-To-Earnings Ratio (25.9x) compared to the peer average (23.3x).


Price to Earnings Ratio vs Industry

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

9 CompaniesPrice / EarningsEstimated GrowthMarket Cap
HON 25.9xIndustry Avg. 13.3xNo. of Companies24PE01020304050+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HON is expensive based on its Price-To-Earnings Ratio (25.9x) compared to the Global Industrials industry average (13.3x).


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 Ratio25.9x
Fair PE Ratio29.7x

Price-To-Earnings vs Fair Ratio: HON is good value based on its Price-To-Earnings Ratio (25.9x) compared to the estimated Fair Price-To-Earnings Ratio (29.7x).


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
CurrentUS$226.67
US$236.26
+4.2%
9.5%US$298.00US$197.00n/a24
Nov ’25US$209.19
US$225.40
+7.7%
7.0%US$274.00US$197.00n/a23
Oct ’25US$206.07
US$228.13
+10.7%
6.4%US$274.00US$205.00n/a24
Sep ’25US$207.91
US$228.40
+9.9%
6.2%US$272.00US$205.00n/a23
Aug ’25US$204.58
US$228.79
+11.8%
6.8%US$281.00US$205.00n/a23
Jul ’25US$210.95
US$227.94
+8.1%
7.5%US$278.00US$195.00n/a23
Jun ’25US$202.19
US$221.14
+9.4%
8.2%US$250.00US$175.00n/a23
May ’25US$195.30
US$221.04
+13.2%
8.0%US$250.00US$175.00n/a24
Apr ’25US$202.01
US$221.46
+9.6%
8.1%US$250.00US$175.00n/a24
Mar ’25US$198.67
US$218.86
+10.2%
8.5%US$250.00US$175.00n/a23
Feb ’25US$197.31
US$218.95
+11.0%
9.0%US$250.00US$175.00n/a23
Jan ’25US$209.71
US$215.28
+2.7%
8.1%US$250.00US$175.00n/a24
Dec ’24US$197.78
US$213.24
+7.8%
9.1%US$265.00US$175.00n/a24
Nov ’24US$183.99
US$213.08
+15.8%
9.0%US$265.00US$175.00US$209.1924
Oct ’24US$184.74
US$219.04
+18.6%
7.9%US$265.00US$180.00US$206.0725
Sep ’24US$188.39
US$219.40
+16.5%
8.0%US$265.00US$180.00US$207.9125
Aug ’24US$193.48
US$220.12
+13.8%
7.9%US$265.00US$180.00US$204.5825
Jul ’24US$207.50
US$221.42
+6.7%
7.4%US$265.00US$185.00US$210.9524
Jun ’24US$193.86
US$221.00
+14.0%
7.4%US$265.00US$185.00US$202.1924
May ’24US$200.48
US$219.83
+9.7%
7.7%US$265.00US$185.00US$195.3024
Apr ’24US$191.12
US$219.70
+15.0%
8.0%US$265.00US$185.00US$202.0123
Mar ’24US$192.88
US$219.61
+13.9%
8.0%US$265.00US$185.00US$198.6723
Feb ’24US$206.72
US$219.35
+6.1%
8.7%US$265.00US$190.00US$197.3123
Jan ’24US$214.30
US$218.29
+1.9%
9.2%US$265.00US$187.00US$209.7124
Dec ’23US$217.39
US$215.00
-1.1%
7.6%US$245.00US$187.00US$197.7824
Nov ’23US$203.10
US$209.75
+3.3%
6.3%US$235.00US$187.00US$183.9924

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


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