Honeywell International Inc. (HON) Intrinsic Value & DCF Valuation
Industrial - Machinery · NASDAQ
Current Price
$218.81
Intrinsic Value
Outside reliable range
What Is Honeywell International Inc.'s Intrinsic Value?
The base-case DCF model produces an intrinsic value estimate for Honeywell International Inc. (HON) that falls outside its reliable range, so treat any single number with extra caution. This usually happens with unusual cash flow patterns or rapid recent changes in the business.
How the DCF works · Recalculate with your own assumptions · What is intrinsic value?
Is Honeywell International Inc. (HON) Undervalued?
Because the model output for HON is outside the reliable range, no undervalued or overvalued read is given here. Use the calculator below to test your own assumptions instead.
COMPETITIVE MOAT
INVESTMENT RISKS
Base case
HON base case valuation
Base case assumptions: 4.0% annual growth, 10.0% discount rate, 30x exit multiple, 5 year projection. Data as of 2026-10-27.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the HON valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Honeywell International Inc. respond.
Open DCF Calculator for HONCompany Overview
Honeywell International Inc., which operates as Honeywell Technologies, is a global automation company serving the building, industrial, and process sectors. It operates through three segments: Building Automation, Process Automation and Technology, and Industrial Automation. The Building Automation segment provides fire detection and life safety systems, building controls and optimization software, energy management systems, access control, and video management software, along with installation, maintenance, and upgrade services. The Process Automation and Technology segment offers end-to-end process automation solutions, including control and safety systems, software, and services, as well as licensed process technologies, catalysts, adsorbents, equipment, and engineering services for the refining, petrochemical, gas processing, and liquefied natural gas industries. The Industrial Automation segment provides sensing and safety technologies, industrial measurement and process control instrumentation, thermal solutions, and smart energy and utility solutions. Its offerings are supported by the Honeywell Technologies Forge software and analytics platform. Honeywell International Inc. was founded in 1906 and is headquartered in Charlotte, North Carolina.
Financial Metrics — HON Stock Valuation Data
Revenue/Share (TTM)
$96.74
FCF/Share (TTM)
$4.02
ROIC (TTM)
7.5%
ROE (TTM)
36.2%
P/FCF
54.5x
EV/EBITDA
7.0x
FCF Yield
1.83%
Debt/Equity
0.73x
On a trailing twelve-month basis, HON generates free cash flow per share of $4.02 alongside a ROIC of 7.5%, both central inputs for a DCF valuation. Its P/FCF ratio of 54.5x and FCF yield of 1.83% then frame how HON is priced against peers on a cash flow basis.
Frequently Asked Questions
What is the intrinsic value of HON?
Honeywell International Inc. currently generates $4.02 in free cash flow per share. At the current price of $218.81, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is HON undervalued?
HON trades at a P/FCF ratio of 54.5x with a free cash flow yield of 1.83%. A high P/FCF means investors are paying more per dollar of free cash flow, which usually reflects expectations of future growth. However, whether HON is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value HON stock using DCF?
To perform a DCF valuation on Honeywell International Inc.: (1) Start with the trailing free cash flow per share ($4.02) as the base, (2) project future FCF growth over 5-10 years based on Industrial - Machinery industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting HON's risk profile — with a debt-to-equity of 0.73x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to HON?
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 company will produce over the next 5-10 years, shaped by Industrial - Machinery trends, then discounting those amounts to today's dollars. HON's ROIC of 7.5% means the company's return on invested capital sits below the level that typically clears its cost of capital.
How does WACC affect HON stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For HON, with a debt-to-equity ratio of 0.73x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 7.0x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See HON PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Industrials valuationsDCF and P/E value HON with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-10-27. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.