Honeywell International Inc. (HON) Fair Value & PE Analysis
Industrial - Machinery · NASDAQ
Current Price
$219.26
PE Ratio (TTM)
9.9x
Intrinsic Value
$259.6
+15.5% margin of safety
What Is Honeywell International Inc.'s Fair Value?
As of 2026-10-28, applying a 9.9x earnings multiple to Honeywell International Inc.'s (HON) earnings per share of $22.18 yields a fair value estimate of $259.6 per share, versus a market price of $219.26.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $193.6 to $336.77. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How the PE model works · Recalculate in PE mode · HON intrinsic value (DCF view)
Is Honeywell International Inc. (HON) Overvalued?
At $219.26, HON trades about 15.5% below its PE-based fair value estimate, a modest discount to its earnings power, though not enough to call it cheap outright.
COMPETITIVE MOAT
INVESTMENT RISKS
Base case
HON base case PE valuation
Intrinsic Value
$259.6
Margin of safety
+15.5%
Expected annual return
+3.4%
Base case assumptions: 4.0% annual earnings growth, 9.89x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-28.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the HON PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Honeywell International Inc. respond.
Open PE 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 PE Stock Valuation Data
PE Ratio (TTM)
9.9x
PEG Ratio
0.63
Earnings Yield
10.11%
ROE (TTM)
36.2%
Revenue/Share (TTM)
$96.74
Dividend Yield
2.02%
Debt/Equity
0.73x
Frequently Asked Questions
What is the PE ratio of HON?
The trailing twelve-month PE ratio of HON reflects how much investors pay per dollar of Honeywell International Inc.'s earnings. This metric is most useful when compared to Industrial - Machinery peers and the company's own historical range.
Is HON overvalued based on PE ratio?
HON's PE of 9.9x combined with a PEG ratio of 0.63 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Industrial - Machinery, a DCF analysis may be more appropriate.
How do I value HON stock using PE ratio?
To value Honeywell International Inc. using PE: (1) Compare the current PE (9.9x) against the Industrial - Machinery median to assess relative pricing, (2) check the PEG ratio (0.63) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of HON?
HON's PEG ratio is 0.63, calculated by dividing the PE ratio (9.9x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for HON stock valuation?
PE ratio gives a quick relative read — how HON is priced versus Industrial - Machinery peers. DCF provides an absolute value based on projected free cash flows. For HON, with a strong ROE of 36.2%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See HON DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Industrials valuationsP/E and DCF value HON with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-28. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.