HON Relative Valuation
HON's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, HON is overvalued; if below, it's undervalued.
Historical Valuation
Honeywell International Inc (HON) is now in the Undervalued zone, suggesting that its current forward PE ratio of 19.08 is considered Undervalued compared with the five-year average of 21.52. The fair price of Honeywell International Inc (HON) is between 229.67 to 286.48 according to relative valuation methord. Compared to the current price of 204.04 USD , Honeywell International Inc is Undervalued By 11.16%.
Relative Value
Fair Zone
229.67-286.48
Current Price：204.04
11.16%
Undervalued
19.08
PE
1Y
3Y
5Y
14.98
EV/EBITDA
Honeywell International Inc. (HON) has a current EV/EBITDA of 14.98. The 5-year average EV/EBITDA is 15.57. The thresholds are as follows: Strongly Undervalued below 12.79, Undervalued between 12.79 and 14.18, Fairly Valued between 16.97 and 14.18, Overvalued between 16.97 and 18.36, and Strongly Overvalued above 18.36. The current Forward EV/EBITDA of 14.98 falls within the Historic Trend Line -Fairly Valued range.
17.11
EV/EBIT
Honeywell International Inc. (HON) has a current EV/EBIT of 17.11. The 5-year average EV/EBIT is 17.89. The thresholds are as follows: Strongly Undervalued below 13.90, Undervalued between 13.90 and 15.90, Fairly Valued between 19.89 and 15.90, Overvalued between 19.89 and 21.88, and Strongly Overvalued above 21.88. The current Forward EV/EBIT of 17.11 falls within the Historic Trend Line -Fairly Valued range.
3.19
PS
Honeywell International Inc. (HON) has a current PS of 3.19. The 5-year average PS is 3.61. The thresholds are as follows: Strongly Undervalued below 2.85, Undervalued between 2.85 and 3.23, Fairly Valued between 3.99 and 3.23, Overvalued between 3.99 and 4.38, and Strongly Overvalued above 4.38. The current Forward PS of 3.19 falls within the Undervalued range.
19.77
P/OCF
Honeywell International Inc. (HON) has a current P/OCF of 19.77. The 5-year average P/OCF is 21.52. The thresholds are as follows: Strongly Undervalued below 16.36, Undervalued between 16.36 and 18.94, Fairly Valued between 24.09 and 18.94, Overvalued between 24.09 and 26.67, and Strongly Overvalued above 26.67. The current Forward P/OCF of 19.77 falls within the Historic Trend Line -Fairly Valued range.
21.47
P/FCF
Honeywell International Inc. (HON) has a current P/FCF of 21.47. The 5-year average P/FCF is 24.99. The thresholds are as follows: Strongly Undervalued below 18.40, Undervalued between 18.40 and 21.70, Fairly Valued between 28.28 and 21.70, Overvalued between 28.28 and 31.57, and Strongly Overvalued above 31.57. The current Forward P/FCF of 21.47 falls within the Undervalued range.
Honeywell International Inc (HON) has a current Price-to-Book (P/B) ratio of 7.41. Compared to its 3-year average P/B ratio of 7.76 , the current P/B ratio is approximately -4.54% higher. Relative to its 5-year average P/B ratio of 7.81, the current P/B ratio is about -5.07% higher. Honeywell International Inc (HON) has a Forward Free Cash Flow (FCF) yield of approximately 4.96%. Compared to its 3-year average FCF yield of 3.65%, the current FCF yield is approximately 35.64% lower. Relative to its 5-year average FCF yield of 3.57% , the current FCF yield is about 39.03% lower.
7.41
P/B
Median3y
7.76
Median5y
7.81
4.96
FCF Yield
Median3y
3.65
Median5y
3.57
Competitors Valuation Multiple
The average P/S ratio for HON's competitors is 3.52, providing a benchmark for relative valuation. Honeywell International Inc Corp (HON) exhibits a P/S ratio of 3.19, which is -9.29% above the industry average. Given its robust revenue growth of 6.99%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of HON decreased by 10.34% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 14.55 to 17.86.
The secondary factor is the Revenue Growth, contributed 6.99%to the performance.
Overall, the performance of HON in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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Frequently Asked Questions
Is Honeywell International Inc (HON) currently overvalued or undervalued?
Honeywell International Inc (HON) is now in the Undervalued zone, suggesting that its current forward PE ratio of 19.08 is considered Undervalued compared with the five-year average of 21.52. The fair price of Honeywell International Inc (HON) is between 229.67 to 286.48 according to relative valuation methord. Compared to the current price of 204.04 USD , Honeywell International Inc is Undervalued By 11.16% .
What is Honeywell International Inc (HON) fair value?
HON's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Honeywell International Inc (HON) is between 229.67 to 286.48 according to relative valuation methord.
How does HON's valuation metrics compare to the industry average?
The average P/S ratio for HON's competitors is 3.52, providing a benchmark for relative valuation. Honeywell International Inc Corp (HON) exhibits a P/S ratio of 3.19, which is -9.29% above the industry average. Given its robust revenue growth of 6.99%, this premium appears unsustainable.
What is the current P/B ratio for Honeywell International Inc (HON) as of Jan 08 2026?
As of Jan 08 2026, Honeywell International Inc (HON) has a P/B ratio of 7.41. This indicates that the market values HON at 7.41 times its book value.
What is the current FCF Yield for Honeywell International Inc (HON) as of Jan 08 2026?
As of Jan 08 2026, Honeywell International Inc (HON) has a FCF Yield of 4.96%. This means that for every dollar of Honeywell International Inc’s market capitalization, the company generates 4.96 cents in free cash flow.
What is the current Forward P/E ratio for Honeywell International Inc (HON) as of Jan 08 2026?
As of Jan 08 2026, Honeywell International Inc (HON) has a Forward P/E ratio of 19.08. This means the market is willing to pay $19.08 for every dollar of Honeywell International Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Honeywell International Inc (HON) as of Jan 08 2026?
As of Jan 08 2026, Honeywell International Inc (HON) has a Forward P/S ratio of 3.19. This means the market is valuing HON at $3.19 for every dollar of expected revenue over the next 12 months.