Honeywell International Inc (HON) fair value: what the stock is really worth
As of Oct 21, 2026: fair value (intrinsic value) of Honeywell International Inc stock $245, price $215, upside +14.3%, quality 68 out of 100. Rating: undervalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Oct 21, 2026.
How to read this chart
60‑month range $151.92 – $257.94 · fair‑value band $161.62 – $340.53 · the $214.73 price screens below the $245.42 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Oct 21, 2026.
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Honeywell International Inc. engages in the aerospace technologies, industrial automation, building automation, and energy and sustainable solutions businesses in the United States, Europe, and internationally.
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The company's Aerospace Technologies segment offers auxiliary power units, propulsion engines, integrated avionics, connectivity services, electric power systems, management and technical services, environmental control and electric power systems, engine controls, flight safety, communications, navigation hardware, data and software applications, radar and surveillance systems, aircraft lighting, advanced systems and instruments, satellite and space components, and aircraft wheels and brakes; thermal systems; and spare parts; repair, overhaul, and maintenance services.
Its Industrial Automation segment provides automation control and instrumentation products and services; smart energy products; sensing technologies with custom-engineered sensors and services; gas detection technologies and personal protective equipment; and system design automation equipment, as well as software and analytics for manufacturing, distribution, and fulfillment operations.
Its Building Automation segment provides software applications for building control and optimization; sensors, switches, control systems, and instruments for energy management; access control; video surveillance; fire products; and installation, maintenance, and upgrade of systems.
The company's Energy and Sustainability Solutions segment, through its UOP business, delivers licensed process technology, equipment, engineering, catalysts, adsorbents, and services for refining, petrochemicals, low-carbon energy, gas and LNG, and industrial solutions; as well as connectivity, data integration and software solutions.
Honeywell International Inc. was founded in 1885 and is headquartered in Charlotte, North Carolina.
Stock analysis
Honeywell International Inc (HON) currently trades at $214.73, while our model-based Fair Value estimate is $245.42, implying the stock looks roughly 12.5% undervalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of $313.34 per share, and 5 of the 10 models we run sit above the $214.73 price.
Bear case: the Economic Profit group reads lowest at $98.78, and 5 of the 10 models stay below the price. Data coverage for this calculation is high.
Scenario range: $161.62 (bear) to $340.53 (bull), the price of $214.73 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 68/100 (solid quality), in the Industrials sector.
Mixed Growth: Spin-off in 2025: revenue and profit before it include the divested business. Growth is measured afresh from 2025.
Honeywell International Inc reported revenue of $37.4B in FY2025 versus $34.4B in FY2021, a compound +2.1%/yr. Reported net income was $4.7B in FY2025, compounding −3.9%/yr from FY2021.
Key figures
Market cap $68.5B Large · P/E ratio 7.9 · P/S ratio 1.80 · EPS (TTM) $27.09 · Dividend yield 4.4% · Net margin 21.6% · Return on equity 46.6% · Return on assets (EBIT) 9.8%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 80 out of 100 (medium confidence).
What moves the price
Analysts expect earnings well below the last reported figure (earnings in transition, for example expiring patents or contracts); a fair value that looks fair on trailing earnings may then be too optimistic.
The share trades about 17% below its 52-week high and 10% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Industrials peers we cover trades at 6% fair-value upside, at 14%, HON screens cheaper than that median.
Fair Value models
Bear$161.62Fair Value $245.42Bull$340.53
Price $214.73 · Upside +14.3%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($14.30 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.55/100
Spin-off in 2025: revenue and profit before it include the divested business. Growth is measured afresh from 2025.
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+0.3%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−1.1%
Revenue growth 39 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+3.5%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+4.1%
Earnings growth per share plus dividend.
Earnings per share, growth per year−0.3%
Dividend (yield on the price)4.4%
Per share before 2025divided by the spin-off factor 1.061
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−0.3% vs 2.6%, steady
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.18% → 18%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes about as much growth as the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+4.4%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
−10.2%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +1.9% a year for the price and −12.3% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (100 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
AI conclusion: The diversified industrial shows strong pricing power and efficiency through high ROE and margins yet offers only limited signals on ownership and human capital.
Main risk: Possible cyclical exposure in its industrial segments could reduce demand and pressure margins in process technologies and automation.
Honeywell has been selected to provide process technologies for a major refinery project in Kenya, extending its collaboration with Dangote. This comes as the company advances its shift toward more recurring revenue streams in automation. Will these large one-time projects accelerate the transition to services or compete with it for resources and attention?
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Conglomerates · 355 stocks
Beats the industry median on 8/14 measures
A mixed picture versus its industry peers.
Valuation
Quality Score68 · Top 25%
Fair Value upside+14.3% · Above median
Profitability
Return on equity (12 months)46.6% · Top 25%
Return on assets6.4% · Top 25%
Net margin (12 months)21.6% · Top 25%
Operating margin (12 months)20.3% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)4.3% · Below median
Dividend yield (12 months)4.4% · Top 25%
Balance sheet
Debt / equity1.76× · Highest 25%
Valuation Multiplesvs Conglomerates median · lower = cheaper
P/E (12 months)7.9× · Cheapest 25%
P/B4.44× · book value is mostly goodwill ⓘGoodwill and other intangible assets are larger than the equity. The book value mainly reflects prices paid for past acquisitions, so we do not rank this P/B against the peer group.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Honeywell International Inc Fair Value". https://www.fairvalue-calculator.com/stock/HON
Frequently asked questions
Is Honeywell International Inc (HON) overvalued or undervalued?
As of Oct 21, 2026, our model estimates a fair value of $245.42 versus a price of $214.73, about +14% upside (undervalued).
What is the fair value of HON?
Our model-based fair value for Honeywell International Inc is $245.42 (as of Oct 21, 2026), built from audited fundamentals. The current price: $214.73.
What is the quality score of HON?
Honeywell International Inc has a Quality Score of 68/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Honeywell International Inc (HON)?
Our model-based price target is the fair value of $245.42 (as of Oct 21, 2026) from 10 valuation models. Cautious scenario $161.62, optimistic scenario $340.53. It is a calculation from audited fundamentals, not an analyst target.
What is the Honeywell International Inc stock forecast for 2026?
Our models put fair value at $245.42, about +14% upside versus a price of $214.73 (undervalued). Cautious scenario $161.62, optimistic scenario $340.53. The calculation is refreshed regularly with new filings.
What is the revenue of Honeywell International Inc (HON)?
Honeywell International Inc reported trailing-twelve-month revenue of about $38.1B (latest available figure, as of Oct 21, 2026).
Does Honeywell International Inc pay a dividend?
Honeywell International Inc currently shows a dividend yield of 4.38% relative to its recent price (as of Oct 21, 2026).
What growth is priced into Honeywell International Inc (HON)?
For today's price to be fair in a discounted-cash-flow model, Honeywell International Inc would have to grow free cash flow by +4.4 % per year for five years (discount rate 9.0 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +2.8 % per year. As of Oct 21, 2026.
What discount rate (WACC) does the fair value of HON use?
Our models discount Honeywell International Inc at 9.0 %: a base by market capitalisation (large), damped by beta 0.89, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Honeywell International Inc that is +4.4 % per year a year over ten years, using the same discount rate (9.0 %) and the same formula as our fair value.
How much growth has Honeywell International Inc (HON) delivered so far?
Over the past 5 years revenue at Honeywell International Inc grew +2.8 % a year. The price currently implies +4.4 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Honeywell International Inc (HON) growing?
The median revenue growth in the sector is +7.5 % a year. That is the yardstick for the growth priced into Honeywell International Inc (+4.4 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Honeywell International Inc (HON)?
The free-cash-flow yield on the price is 7.87 %: that much free cash flow Honeywell International Inc produces per unit of market value. When it exceeds the discount rate of our models (9.0 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Honeywell International Inc (HON)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Honeywell International Inc it is $245.42 per share (as of Oct 21, 2026), against a price of $214.73. It is the blended result of 10 valuation models (cash flow, earnings, asset, dividend).
Is Honeywell International Inc stock overvalued or undervalued in 2026?
As of Oct 21, 2026, HON trades below its calculated fair value: price $214.73, fair value $245.42, a gap of about +14% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of HON?
No. The price is what the market pays today ($214.73); the fair value is what the company's own numbers justify ($245.42). For Honeywell International Inc the two are $30.69 per share apart. That gap is exactly why we show both numbers side by side.
How much is Honeywell International Inc worth?
The market values Honeywell International Inc at about $68.5B (market capitalisation, as of Oct 21, 2026). Per share that is $214.73; our models calculate a fair value of $245.42 per share.
What do the bullish and bearish scenarios say about HON?
Our models span a range for Honeywell International Inc: cautious scenario $161.62, base $245.42, optimistic $340.53 per share (as of Oct 21, 2026, price $214.73). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of HON?
Honeywell International Inc trades at a price-to-earnings ratio of 7.9 (as of Oct 21, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $245.42 is built from several models across several years. Other multiples: PEG 3.5, P/B 4.4, P/S 1.8, EV/EBITDA 9.8.
What is the PEG ratio of HON?
The PEG ratio of Honeywell International Inc is 3.47 (P/E divided by earnings growth, as of Oct 21, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Honeywell International Inc (HON)?
Balance-sheet figures for Honeywell International Inc (as of Oct 21, 2026): return on equity 46.6%, debt of 1.76 per unit of equity. They feed the Quality Score of 68/100, which measures business quality independently of the share price.
How far is HON from its 52-week high?
Honeywell International Inc trades at $214.73, about 17% below its 52-week high of $257.94 and 10% above the low of $194.68 (as of Oct 21, 2026). Distance from the high says nothing about value: that is what the fair value of $245.42 is for.
Which stocks are comparable to Honeywell International Inc?
From the same area (Industrials) we also value 3M Company, Swire Pacific Limited, SGH Limited, SK Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Honeywell International Inc stock attractive at the current price?
The data as of Oct 21, 2026: price $214.73, calculated fair value $245.42 (+14%), Quality Score 68/100, from 10 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of HON calculated?
We run Honeywell International Inc through 10 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $245.42, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.6 % above its aggregate fair value. Honeywell International Inc currently trades 13 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Honeywell International Inc (HON)?
The closing price on Oct 21, 2026 was $214.73. Our model-based fair value is $245.42, about +14% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Honeywell International Inc right now?
A fairly wide model range ($161.62 to $340.53) leaves room in how you read the outcome. The price sits in the lower half of our model range, the side with the larger margin of safety. The data supports the verdict: every model runs on fully documented inputs.
Where does the earnings growth of Honeywell International Inc (HON) come from?
Earnings per share at Honeywell International Inc grew +3.8 % a year from 2014 to 2025. Broken into its drivers: revenue per share +1.1 %, EBIT margin +1.9 %, tax rate +1.0 %, residual (interest, one-offs) −0.2 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Honeywell International Inc
How large is the market capitalisation of Honeywell International Inc (HON)?
The market capitalisation of Honeywell International Inc is $68.5B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Honeywell International Inc (HON)?
The price-to-sales ratio of Honeywell International Inc is 1.80 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Honeywell International Inc (HON)?
Earnings per share at Honeywell International Inc are $27.09 (price ÷ EPS = P/E 7.9). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Honeywell International Inc (HON)?
The dividend yield of Honeywell International Inc is 4.4% (payout 34.7%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Honeywell International Inc (HON)?
The net margin of Honeywell International Inc is 21.6% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Honeywell International Inc (HON)?
The return on equity (ROE) of Honeywell International Inc is 46.6% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Honeywell International Inc (HON)?
On an EBIT basis the return on assets of Honeywell International Inc is 9.8% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Honeywell International Inc (HON)?
The operating margin of Honeywell International Inc is 20.3% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Honeywell International Inc (HON)?
Revenue at Honeywell International Inc is growing +4.3% versus a year earlier (3y avg +1.8%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Honeywell International Inc (HON)?
Earnings per share at Honeywell International Inc are growing +264% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Honeywell International Inc (HON) carry?
The net debt of Honeywell International Inc is $22.1B (fiscal year 2025, ≈ 4.1 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Oct 21, 2026