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Honeywell International Inc (HON) Fair Value & Analysis

Industrials · US · Market cap $71.7B · ISIN US4385162056

What is Honeywell International Inc really worth?

HI Honeywell International Inc logo Honeywell International Inc HON · US
Price$207.63
Fair Value$218.95
Upside+5.5%
Quality67/100

A solid business, currently priced close to our fair value of $218.95.

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Strengths

Healthy Growth (revenue 5y +2.8 %/yr)
Solidly profitable · 10.9% net margin
Wide moat 73/100

Risks

!High debt · generates free cash flow
!Mixed vs. peers (7/15)
!Weak on future: 12 out of 100
!Weak on balance sheet: 12 out of 100

For context

·4.47% dividend yield
Evidence: High Range $138.62 – $391.81

Fair value as of: Aug 30, 2026

From 12 valuation models · updated 6 days ago

Share price −16.5% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The model range is unusually wide ($138.62 to $391.81). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.

Price vs Fair Value (5 years)

$258.71 $152.37 Fair Value $218.95 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 30, 2026.

How to read this chart

60‑month range $152.37 – $258.71 · fair‑value band $138.62 – $391.81 · the $207.63 price screens below the $218.95 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 30, 2026.

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Analysis

Honeywell International Inc (HON) currently trades at $207.63, while our model-based Fair Value estimate is $218.95, implying the stock looks roughly 5.2% fairly valued today. The Quality Score stands at 67/100 (solid quality), in the Industrials sector. Bull case: the DCF Models group reads highest at a median of $220.25 per share, and 4 of the 12 models we run sit above the $207.63 price. Bear case: the Asset-Based group reads lowest at $32.65, and 8 of the 12 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Honeywell International Inc generated revenue of $37.7B at a net margin of 10.9%. Revenue grew 2.4% year over year. It earns a return on equity of 24.3%. Net debt stands at $22.1B. Fundamentals as of Aug 30, 2026

Our scenario range runs from $138.62 (bear case) to $391.81 (bull case); at $207.63, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. 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 16% below its 52-week high and 12% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at 11% fair-value upside, at 5%, HON screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $2.20 per share, which is 1.0 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model 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. Evidence
Highest evidence
Growth DCF best evidence $136.18 $202.73 $297.73 78
Owner Earnings $121.51 $187.94 $287.36 76
Rev-Margin DCF $106.32 $178.18 $256.67 72
All 12 models by family
DCF Models
Owner Earnings $121.51 $187.94 $287.36 76
5Y P/E Exit $147.70 $247.39 $349.24 70
10Y P/E Exit $139.43 $220.25 $306.81 64
Earnings-Based
Graham-Dodd $101.50 $203.15 $255.25 66
Dividend Discount
Gordon GGM $86.25 $123.85 $162.69 69
DDM Multi-Stage $86.25 $121.42 $162.19 67
Multiples
P/E Multiple $235.09 $313.45 $391.81 63
P/B Multiple $164.47 $219.30 $274.12 55
Asset-Based
NCAV (Graham) $24.37 $32.65 $48.73 54
Growth DCF
Growth DCF best evidence $136.18 $202.73 $297.73 78
Rev-Margin DCF $106.32 $178.18 $256.67 72
Economic Profit
Residual Income $91.48 $113.73 $467.41 64

Widest divergence: DCF Models ($220.25) versus Asset-Based ($32.65). Highest evidence: Growth DCF (78).

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Key figures & financial health

P/E ratio 33.2
P/S ratio 4.20 P/E × margin
EPS (TTM) $6.25 price ÷ EPS = P/E 33.2
Dividend yield 4.5% payout 148%
Net margin 12.6% FY2025
Return on equity 24.3% TTM
More key figures
Profitability
Return on assets (EBIT) 9.8% avg 5y
Operating margin 21.0% TTM
Growth
Revenue (TTM) $37.7B TTM
Revenue growth (YoY) +2.4% 3y avg +1.8%
EPS growth (YoY) −41.9%
Balance sheet & cash flow
Free cash flow $5.4B FY2025
Net debt $22.1B FY2025 · ≈ 4.1 yrs of FCF

Figures from reported company fundamentals · as of Aug 30, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 67/100

Of which business quality 62 · Market factors (momentum, volatility) 44

Profitability 54
Margins and returns on capital today
Quality Growth 43
Are margins and returns improving?
Cashflow 67
Earnings quality: real cash, not paper profit
Fin. Strength 40
Balance sheet, leverage, solvency risk
Investment 89
Disciplined investing over empire-building
Low Volatility 70
Calm price path (market factor)
Momentum 36
Price trend over the last 3–12 months (market factor)
52W Momentum 27
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

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.

Full company description

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. 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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

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.

Growth Quality 74/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
$37.4B
Latest YoY
+7.8%
Avg. revenue growth/yr (3Y) 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.
+1.8%
Avg. revenue growth/yr (5Y) 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.
+2.8%
Avg. revenue growth/yr (40Y) 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.
+3.6%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+3.1% (−1.4 + 4.5)
Revenue +2.1%/yr
FY21 $34.4B
FY22 $35.5B
FY23 $36.7B
FY24 $34.7B
FY25 $37.4B
Net income −3.9%/yr
FY21 $5.5B
FY22 $5.0B
FY23 $5.7B
FY24 $5.7B
FY25 $4.7B
Character of growth · EPS growth decomposed (2014-2025) +3.8 % p.a.
Revenue per share +1.1 %

of which total revenue −0.9 % · buybacks/dilution +2.0 %

EBIT margin +1.9 %
Tax rate +1.0 %
Residual (interest, one-offs) −0.2 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Honeywell International Inc Fair Value". https://www.fairvalue-calculator.com/stock/HON

Peer Group

Conglomerates · 375 stocks

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.

Quality Score 67 · Top 25%
Fair Value upside +6% · Above median
Return on equity (TTM) 24% · Top 25%
Return on assets 6% · Top 25%
Net margin (TTM) 11% · Top 25%
Operating margin (TTM) 21% · Top 25%
Revenue growth 2% · Below median
Dividend yield (TTM) 4.5% · Top 25%
Debt / equity 1.76× · Higher than 75% of peers

Valuation Multiples vs Conglomerates median · lower = cheaper

P/E (TTM) 33.2× · Pricier than 75% of peers
P/B 4.64× · Pricier than 75% of peers
P/S (TTM) 1.90× · Pricier than median
P/FCF 13.3× · Pricier than 75% of peers
EV/EBITDA 10.1× · Pricier than median
PEG 8.32× · Pricier than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE41 · sector 25
FUTURE12 · sector 17
PAST97 · sector 17
HEALTH12 · sector 89
DIVIDEND45 · sector 42

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

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Frequently asked questions

Is Honeywell International Inc (HON) overvalued or undervalued?
As of Aug 30, 2026, our model estimates a fair value of $218.95 versus a price of $207.63, about +5% upside (fairly valued).
What is the fair value of HON?
Our model-based fair value for Honeywell International Inc is $218.95 (as of Aug 30, 2026), built from audited fundamentals. The current price: $207.63.
What is the quality score of HON?
Honeywell International Inc has a Quality Score of 67/100. 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 revenue of Honeywell International Inc (HON)?
Honeywell International Inc reported trailing-twelve-month revenue of about $37.7B (latest available figure, as of Aug 30, 2026).
What is the net profit margin of HON?
The net profit margin of Honeywell International Inc is about 10.9%, meaning it keeps roughly 10.9% of revenue as net income. Based on the latest reported figures.
Does Honeywell International Inc pay a dividend?
Honeywell International Inc currently shows a dividend yield of about 4.47% relative to its recent price (as of Aug 30, 2026).
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