Honeywell International Inc. (HON) Fair Value & PE Analysis
Conglomerates · NASDAQ
Current Price
$239.87
PE Ratio (TTM)
8.9x
Intrinsic Value
$280.38
+14.4% margin of safety
What Is Honeywell International Inc.'s Fair Value?
As of 2026-07-30, applying a 9.0x earnings multiple to Honeywell International Inc.'s (HON) earnings per share of $25.89 yields a fair value estimate of $280.38 per share, versus a market price of $239.87.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $206.49 to $366.94. 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 $239.87, HON trades about 14.4% below its PE-based fair value estimate, a modest discount to its earnings power, though not enough to call it cheap outright.
COMPETITIVE MOAT
↑Diversified Industrial Conglomerate
Honeywell's broad portfolio across aerospace, building technologies, performance materials, and safety/productivity solutions creates resilience. This diversification reduces reliance on any single market, providing stability.
↑Strong Brand and Customer Relationships
Decades of operation have built significant brand recognition and trust. Long-standing relationships with industrial clients foster loyalty and recurring business across its diverse segments.
↑Technological Innovation and IP Portfolio
Significant investment in R&D fuels a robust patent portfolio and proprietary technologies. This intellectual property creates barriers to entry and supports premium pricing in specialized markets.
INVESTMENT RISKS
↓Economic Sensitivity and Cyclical Downturns
As a major industrial supplier, Honeywell is exposed to global economic cycles. A significant economic slowdown could reduce demand across its diverse product lines, impacting revenue and profitability.
↓Regulatory and Environmental Compliance
Operating in highly regulated industries like aerospace and chemicals exposes Honeywell to evolving compliance requirements. Changes in environmental or safety regulations could necessitate costly adjustments and impact operations.
↓Supply Chain Disruptions and Input Costs
Global supply chain volatility and fluctuating raw material costs can impact Honeywell's manufacturing efficiency and profitability. Managing these external factors is crucial for maintaining margins.
Base case
HON base case PE valuation
Intrinsic Value
$280.38
Margin of safety
+14.4%
Expected annual return
+3.2%
Base case assumptions: 3.5% annual earnings growth, 9x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-30.
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. functions as a global leader in diversified technology and manufacturing. Its Aerospace division furnishes a comprehensive array of products and services for the aviation and space industries. This includes crucial components like auxiliary power units, propulsion systems, integrated avionics, environmental control mechanisms, and electrical power solutions. The segment also supplies engine controls, flight safety systems, communication and navigation hardware, and advanced data and software applications. Additionally, it provides radar, surveillance systems, aircraft lighting, sophisticated instruments, satellite and space components, and aircraft wheels and brakes. Essential support services cover spare parts, repairs, overhauls, maintenance, thermal systems, and wireless connectivity management. The Honeywell Building Technologies unit focuses on creating smarter, safer, and more efficient structures. It develops software for optimizing and controlling building functions, alongside sensors, switches, control systems, and instrumentation for energy management. Offerings extend to access control systems, video surveillance, fire detection products, and the installation, upkeep, and upgrading of these systems. Within its Performance Materials and Technologies division, the company delivers solutions for automation control, instrumentation, and associated software and services. It also provides catalysts, adsorbents, specialized equipment, and consulting expertise. This segment supplies materials essential for manufacturing diverse end products, such as bullet-resistant armor, nylon, computer chips, and pharmaceutical packaging. Furthermore, it produces environmentally friendly materials with reduced and low global-warming potential, utilizing hydrofluoro-olefin technology. The Safety and Productivity Solutions group equips workers and industries with a wide range of products. These comprise personal protective equipment, apparel, gear, and footwear, alongside advanced gas detection technology. It offers cloud-based notification and emergency messaging systems, mobile devices and software, and solutions for supply chain and warehouse automation, including both equipment and software. Custom-engineered sensors, switches, and controls, as well as data and asset management productivity software solutions, also fall under this division. Established in 1906, Honeywell is headquartered in Charlotte, North Carolina.
Financial Metrics — HON PE Stock Valuation Data
PE Ratio (TTM)
8.9x
PEG Ratio
0.17
Earnings Yield
10.79%
ROE (TTM)
41.7%
Revenue/Share (TTM)
$113.90
Dividend Yield
3.92%
Debt/Equity
1.14x
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 Conglomerates peers and the company's own historical range.
Is HON overvalued based on PE ratio?
HON's PE of 8.9x combined with a PEG ratio of 0.17 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 Conglomerates, 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 (8.9x) against the Conglomerates median to assess relative pricing, (2) check the PEG ratio (0.17) 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 0.17, calculated by dividing the PE ratio (8.9x) 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 Conglomerates peers. DCF provides an absolute value based on projected free cash flows. For HON, with a strong ROE of 41.7%, 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 2026-07-30. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.