Conglomerates · NASDAQ
Current Price
$210.30
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Honeywell International Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Honeywell International Inc. operates as a diversified technology and manufacturing company worldwide. Its Aerospace segment offers auxiliary power units, propulsion engines, integrated avionics, environmental control and electric power systems, engine controls, flight safety, communications, navigation hardware, data and software applications, radar and surveillance systems, aircraft lighting, advanced systems and instruments, satellite and space components, and aircraft wheels and brakes; spare parts; repair, overhaul, and maintenance services; thermal systems, as well as wireless connectivity and management services. The company's Honeywell Building Technologies segment offers software applications for building control and optimization; sensors, switches, control systems, and instruments for energy management; access control; video surveillance; fire products; and installation, maintenance, and upgrades of systems. Its Performance Materials and Technologies segment offers automation control, instrumentation, and software and related services; catalysts and adsorbents, equipment, and consulting; and materials to manufacture end products, such as bullet-resistant armor, nylon, computer chips, and pharmaceutical packaging, as well as provides reduced and low global-warming-potential materials based on hydrofluoro-olefin technology. The company's Safety and Productivity Solutions segment provides personal protection equipment, apparel, gear, and footwear; gas detection technology; cloud-based notification and emergency messaging; mobile devices and software; supply chain and warehouse automation equipment, and software solutions; custom-engineered sensors, switches, and controls; and data and asset management productivity software solutions. The company was founded in 1906 and is headquartered in Charlotte, North Carolina.
ROIC (TTM)
8.2%
ROE (TTM)
23.6%
FCF Yield
3.13%
Based on trailing twelve-month data, HON shows a free cash flow per share of N/A and a ROIC of 8.2%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 3.13% are important context metrics when evaluating HON's stock valuation relative to peers.
The intrinsic value of HON depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether HON is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $210.30. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Honeywell International Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Conglomerates industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting HON's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Honeywell International Inc., this means projecting how much free cash flow the Conglomerates will produce over the next 5-10 years, then discounting those amounts to today's dollars. HON's ROIC of 8.2% shows moderate capital returns.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For HON, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
