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 18.85 is considered Undervalued compared with the five-year average of 21.85. The fair price of Honeywell International Inc (HON) is between 318.61 to 363.21 according to relative valuation methord. Compared to the current price of 193.47 USD , Honeywell International Inc is Undervalued By 39.28%.
Relative Value
Fair Zone
318.61-363.21
Current Price：193.47
39.28%
Undervalued
18.71
PE
1Y
3Y
5Y
Trailing
Forward
14.95
EV/EBITDA
Honeywell International Inc. (HON) has a current EV/EBITDA of 14.95. The 5-year average EV/EBITDA is 15.64. The thresholds are as follows: Strongly Undervalued below 12.76, Undervalued between 12.76 and 14.20, Fairly Valued between 17.08 and 14.20, Overvalued between 17.08 and 18.52, and Strongly Overvalued above 18.52. The current Forward EV/EBITDA of 14.95 falls within the Historic Trend Line -Fairly Valued range.
16.36
EV/EBIT
Honeywell International Inc. (HON) has a current EV/EBIT of 16.36. The 5-year average EV/EBIT is 17.98. The thresholds are as follows: Strongly Undervalued below 13.81, Undervalued between 13.81 and 15.89, Fairly Valued between 20.06 and 15.89, Overvalued between 20.06 and 22.15, and Strongly Overvalued above 22.15. The current Forward EV/EBIT of 16.36 falls within the Historic Trend Line -Fairly Valued range.
3.10
PS
Honeywell International Inc. (HON) has a current PS of 3.10. The 5-year average PS is 3.63. The thresholds are as follows: Strongly Undervalued below 2.84, Undervalued between 2.84 and 3.24, Fairly Valued between 4.03 and 3.24, Overvalued between 4.03 and 4.42, and Strongly Overvalued above 4.42. The current Forward PS of 3.10 falls within the Undervalued range.
18.84
P/OCF
Honeywell International Inc. (HON) has a current P/OCF of 18.84. The 5-year average P/OCF is 21.60. The thresholds are as follows: Strongly Undervalued below 16.39, Undervalued between 16.39 and 18.99, Fairly Valued between 24.20 and 18.99, Overvalued between 24.20 and 26.80, and Strongly Overvalued above 26.80. The current Forward P/OCF of 18.84 falls within the Undervalued range.
21.05
P/FCF
Honeywell International Inc. (HON) has a current P/FCF of 21.05. The 5-year average P/FCF is 25.09. The thresholds are as follows: Strongly Undervalued below 18.53, Undervalued between 18.53 and 21.81, Fairly Valued between 28.38 and 21.81, Overvalued between 28.38 and 31.66, and Strongly Overvalued above 31.66. The current Forward P/FCF of 21.05 falls within the Undervalued range.
Honeywell International Inc (HON) has a current Price-to-Book (P/B) ratio of 7.32. Compared to its 3-year average P/B ratio of 7.89 , the current P/B ratio is approximately -7.27% higher. Relative to its 5-year average P/B ratio of 7.89, the current P/B ratio is about -7.18% higher. Honeywell International Inc (HON) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.61%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.54% , the current FCF yield is about -100.00% lower.
7.27
P/B
Median3y
7.89
Median5y
7.89
5.02
FCF Yield
Median3y
3.61
Median5y
3.54
Competitors Valuation Multiple
The average P/S ratio for HON's competitors is , providing a benchmark for relative valuation. Honeywell International Inc Corp (HON) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 6.99%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of HON decreased by 14.45% 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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