HON
Honeywell International Inc. (HON)
Last Price$214.51.5%
Market Cap$139.6B
DCF value
$184.0
Overvalued (DCF value)
(14.2%)
Discount Rate
7.6%
Long-Term Growth Rate
2.0%
Stock quality
6/10
Good

HON DCF Model

Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
Dec'20 ActualDec'21 ActualDec'22 ActualDec'23 ActualDec'24 ActualDec'25 EstimateDec'26 EstimateDec'27 EstimateDec'28 EstimateDec'29 EstimateDec'30 EstimateDec'31 EstimateDec'32 EstimateDec'33 EstimateDec'34 EstimateDec'35 Terminal
% growth
32,637.0
(11.1%)
34,392.0
5.4%
35,466.0
3.1%
36,662.0
3.4%
38,498.0
5.0%
41,279.4
7.2%
43,409.4
5.2%
45,440.8
4.7%
47,415.1
4.3%
49,316.3
4.0%
51,128.6
3.7%
52,836.2
3.3%
54,423.8
3.0%
55,876.9
2.7%
57,181.6
2.3%
58,325.3
2.0%
6,371.0
19.5%
7,578.0
22.0%
6,793.0
19.2%
7,554.0
20.6%
7,213.0
18.7%
8,400.8
20.4%
8,834.2
20.4%
9,247.6
20.4%
9,649.4
20.4%
10,036.3
20.4%
10,405.2
20.4%
10,752.7
20.4%
11,075.8
20.4%
11,371.5
20.4%
11,637.0
20.4%
11,869.8
20.4%
NOPAT
% effective tax rate
5,155.5
15.8%
5,876.0
17.1%
5,289.4
14.9%
5,985.0
16.3%
5,705.0
14.8%
6,644.4
16.1%
6,987.3
16.1%
7,314.3
16.1%
7,632.1
16.1%
7,938.1
16.1%
8,229.8
16.1%
8,504.6
16.1%
8,760.2
16.1%
8,994.1
16.1%
9,204.1
16.1%
9,388.2
16.1%
% of revenue
1,002.0
3.1%
1,223.0
3.6%
1,204.0
3.4%
1,176.0
3.2%
1,334.0
3.5%
1,385.3
3.4%
1,456.8
3.4%
1,524.9
3.4%
1,591.2
3.4%
1,655.0
3.4%
1,715.8
3.4%
1,773.1
3.4%
1,826.4
3.4%
1,875.2
3.4%
1,918.9
3.4%
1,957.3
3.4%
% of revenue
(906.0)
(2.8%)
(895.0)
(2.6%)
(766.0)
(2.2%)
(1,039.0)
(2.8%)
(1,164.0)
(3.0%)
(1,103.2)
(2.7%)
(1,160.1)
(2.7%)
(1,214.4)
(2.7%)
(1,267.1)
(2.7%)
(1,318.0)
(2.7%)
(1,366.4)
(2.7%)
(1,412.0)
(2.7%)
(1,454.4)
(2.7%)
(1,493.3)
(2.7%)
(1,528.1)
(2.7%)
(1,558.7)
(2.7%)
1,363.0
4.2%
288.0
0.8%
(745.0)
(2.1%)
361.0
1.0%
0.0
0.0%
(153.6)
(0.4%)
(161.5)
(0.4%)
(169.0)
(0.4%)
(176.4)
(0.4%)
(183.4)
(0.4%)
(190.2)
(0.4%)
(196.5)
(0.4%)
(202.4)
(0.4%)
(207.8)
(0.4%)
(212.7)
(0.4%)
(217.0)
(0.4%)
Free Cash Flow to Firm (FCFF)
% of revenue
6,614.5
20.3%
6,492.0
18.9%
4,982.4
14.0%
6,483.0
17.7%
5,875.0
15.3%
6,773.0
16.4%
7,122.5
16.4%
7,455.8
16.4%
7,779.7
16.4%
8,091.7
16.4%
8,389.0
16.4%
8,669.2
16.4%
8,929.7
16.4%
9,168.1
16.4%
9,382.2
16.4%
9,569.8
16.4%
% of FCFF used in calculation
81.9%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Discount period
0.50
1.50
2.50
3.50
4.50
5.50
6.50
7.50
8.50
9.50
Discount factor
0.96
0.90
0.83
0.77
0.72
0.67
0.62
0.58
0.54
0.50
Discounted FCFF (DFCFF)
5,349.0
6,382.2
6,209.5
6,022.2
5,821.8
5,609.9
5,388.3
5,158.6
4,922.7
4,682.2

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HON DCF Value

DCF Value Calculation

as of Mar 07, 2025
Sum of DFCFF
% share of EV
55.5B
39.4%
Terminal Value (TV)
171.2B
Discounted TV
% share of EV
85.4B
60.6%
Total Debt
32.2B
Shares outstanding
650.6M
FX rate
1.0
14.2% overvalued

Equity Value Bridge

HON DCF Financials

Revenue
$38.5B -> $57.2B 4.0% CAGR
Operating Income
$7,213.0M -> $11.6B 4.9% CAGR
FCFF
$5,875.0M -> $9,382.2M 4.8% CAGR

HON DCF sensitivity

DCF value
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
7.0%
$184.0
$196.0
$210.0
$227.0
$248.0
7.5%
$167.0
$176.0
$188.0
$201.0
$217.0
7.6%
$164.0
$173.0
$184.0
$197.0
$213.0
8.5%
$140.0
$146.0
$154.0
$162.0
$173.0
9.0%
$129.0
$134.0
$140.0
$147.0
$156.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
7.0%
(14.0%)
(9.0%)
(2.0%)
6.0%
16.0%
7.5%
(22.0%)
(18.0%)
(12.0%)
(6.0%)
1.0%
7.6%
(24.0%)
(19.0%)
(14.0%)
(8.0%)
(1.0%)
8.5%
(35.0%)
(32.0%)
(28.0%)
(24.0%)
(19.0%)
9.0%
(40.0%)
(38.0%)
(35.0%)
(31.0%)
(27.0%)

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FAQ

What is Honeywell International Inc. DCF (discounted cash flow) valuation?

As of Mar 07, 2025, Honeywell International Inc.'s Discounted Cash Flow (DCF) valuation estimates its share price at $184.0. This suggests it may be overvalued by (14.2%) compared to its current price of around $214.5, using a WACC of 7.6% and growth rates of 2.0%.

What is Honeywell International Inc. WACC?

As of Mar 07, 2025, Honeywell International Inc.'s Weighted Average Cost of Capital (WACC) is approximately 7.6%.

What is Honeywell International Inc. Enterprise Value?

As of Mar 07, 2025, Honeywell International Inc.'s Enterprise Value (EV) is approximately $141.0B. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.