Honeywell International Inc.

NasdaqGS:HON Stock Report

Market Cap: US$141.7b

Honeywell International Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 ($214.61) is trading below our estimate of fair value ($294.61)

Significantly Below Fair Value: HON is trading below fair value by more than 20%.


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

HON key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.2x
Enterprise Value/EBITDA17.6x
PEG Ratio2.7x

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 Average31.6x
BBU Brookfield Business Partners
9.1x89.7%US$4.3b
RTX RTX
39.6x15.5%US$139.4b
ETN Eaton
36.3x10.7%US$124.5b
GE General Electric
41.5x12.2%US$171.5b
HON Honeywell International
24.4x9.0%US$141.7b

Price-To-Earnings vs Peers: HON is good value based on its Price-To-Earnings Ratio (24.4x) compared to the peer average (31.6x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a28.7%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a28.7%
n/an/an/a
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Price-To-Earnings vs Industry: HON is expensive based on its Price-To-Earnings Ratio (24.4x) compared to the Global Industrials industry average (12.5x).


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 Ratio24.4x
Fair PE Ratio26.8x

Price-To-Earnings vs Fair Ratio: HON is good value based on its Price-To-Earnings Ratio (24.4x) compared to the estimated Fair Price-To-Earnings Ratio (26.8x).


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$214.61
US$230.20
+7.3%
6.9%US$281.00US$195.00n/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$175.00n/a24
Oct ’24US$184.74
US$219.04
+18.6%
7.9%US$265.00US$180.00n/a25
Sep ’24US$188.39
US$219.40
+16.5%
8.0%US$265.00US$180.00n/a25
Aug ’24US$193.48
US$220.12
+13.8%
7.9%US$265.00US$180.00n/a25
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
Oct ’23US$166.97
US$205.71
+23.2%
6.6%US$232.00US$183.00US$184.7424
Sep ’23US$190.73
US$205.58
+7.8%
6.7%US$232.00US$183.00US$188.3924
Aug ’23US$191.99
US$207.53
+8.1%
6.7%US$232.00US$183.00US$193.4824
Jul ’23US$175.11
US$219.37
+25.3%
7.8%US$262.00US$183.00US$207.5023

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


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