Value/share = (PV of forecast FCF + PV of terminal value - net debt) / diluted shares$201.57WACC 8% | g 2.5%
Insufficient peer coverage for a publishable comps set.
Enterprise value $139.2B
Value/share = equity value / diluted shares642,800,000Net debt $9.7B
Investment Summary
The call, the valuation anchor, and the main risk in one view.
HOLD Honeywell International Inc. is rated HOLD with a target price of $201.57 versus the current price of $223.91.
The DCF implies $201.57 per share. Comparable valuation is excluded here because the peer set did not clear the quality threshold.
Specific risks are not detailed in the provided information.
Key Data
Quick facts investors usually scan first.
- Sector
- Industrials
- Industry
- Conglomerates
- Exchange
- NASDAQ
- Market Cap
- $142.3B
- Revenue
- $37.4B
- Free Cash Flow
- $5.4B
Revenue Growth
Historical revenue plus a 5-year forecast shaped by analyst estimates in the early years and a deterministic platform fade after that.
Price History
Use the range selector to compare shorter and longer setups.
DCF Sensitivity Grid
The grid shows DCF-only value per share across WACC and terminal growth assumptions. The published target price can differ because it currently relies on DCF only.
Base-case DCF and the center cell should reconcile closely because both use the same blended terminal-value method (8% WACC / 2.5% g). The published target currently equals the DCF output because comparable coverage was insufficient.
Base-case cell: $201.66 using 8% WACC and 2.5% terminal growth.
| WACC \ g | 1.5% | 2% | 2.5% | 3% | 3.5% |
|---|---|---|---|---|---|
| 6% | $238.97 | $252.42 | $269.74 | $292.90 | $325.43 |
| 7% | $210.33 | $218.78 | $229.13 | $242.08 | $258.77 |
| 8% | $189.15 | $194.88 | $201.66 | $209.81 | $219.78 |
| 9% | $172.53 | $176.63 | $181.36 | $186.88 | $193.42 |
| 10% | $158.93 | $161.98 | $165.44 | $169.39 | $173.95 |
Peer Multiples
Simple comparable valuation cross-check using quality-screened peers.
Comparable valuation is not shown because there were fewer than three high-quality peers after filtering for industry, size, exchange, and usable valuation multiples.
How to Read the Valuation
Plain-English definitions for the main inputs and outputs.
The base-case valuation discounts forecast cash flows using a WACC of 8%. The cost of equity starts from a 10-year Treasury yield of 4.3% as of Apr 21, 2026. Higher discount rates reduce present value, while lower ones increase it.
After year five, the model uses a terminal growth rate of 2.5% to estimate continuing value. In the base case, terminal value is blended with an exit-multiple cross-check rather than relying on perpetuity growth alone.
Revenue starts from 3.1% and fades toward a steady-state growth rate of 3.5% under a platform profile. The first 3 forecast years use analyst estimates where coverage is available.
Peer multiples anchor a market-based valuation range and help test whether the DCF output looks reasonable relative to similar businesses. If the peer set is too weak, the published target stays DCF-only instead of blending in low-quality comparables.
Honeywell International Inc. (HON)
Company Snapshot
- Sector: Industrials
- Industry: Conglomerates
- Exchange: NASDAQ
- Current Price: $223.91
- Target Price: $201.57
- Recommendation: HOLD
- Market Cap: $142.3B
Honeywell International Inc. screens HOLD with a DCF-based target price of $201.57, versus a current price of $223.91 and modeled upside of -10%.
Investment Thesis
We recommend a HOLD rating for Honeywell International Inc. (HON) with a target price of 201.57 USD, suggesting a potential downside of 9.98% from its current price of 223.91 USD. This target is derived from our Discounted Cash Flow (DCF) analysis, which indicates an intrinsic value per share of 201.57 USD.
Business Overview
Honeywell International Inc. is a diversified technology and manufacturing company operating globally. The company's operations are segmented into Aerospace, offering propulsion engines, avionics, and maintenance services; Honeywell Building Technologies, providing software applications, sensors, and control systems for energy management and security; Performance Materials and Technologies, focusing on automation control, catalysts, and advanced materials; and Safety and Productivity Solutions, which supplies personal protection equipment, gas detection technology, and supply chain automation solutions. Founded in 1906, Honeywell is headquartered in Charlotte, North Carolina, and employs 102,000 people.
Financial Analysis
Honeywell International Inc. reported a revenue of 37.44 billion USD, with an EBIT of 6.82 billion USD and EBITDA of 8.21 billion USD. The company generated a free cash flow of 5.39 billion USD. Our Discounted Cash Flow (DCF) model, utilizing a WACC of 7.97%, a terminal growth rate of 2.5%, and a terminal exit multiple of 16, calculates an intrinsic value per share of 201.57 USD. Comparable valuation is unavailable based on the provided data.
Latest Reported Snapshot
| Metric | Value |
|---|---|
| Revenue | $37.4B |
| EBIT | $6.8B |
| EBITDA | $8.2B |
| Free Cash Flow | $5.4B |
| Diluted Shares | 642,800,000 |
DCF Valuation
| Metric | Value |
|---|---|
| Intrinsic Value / Share | $201.57 |
| Forecast Profile | platform |
| Starting Growth | 3.1% |
| Steady-State Growth | 3.5% |
| Risk-Free Rate | 4.3% |
| Equity Risk Premium | 4.5% |
| WACC | 8% |
| Terminal Growth | 2.5% |
| Exit Multiple | 16x |
| Enterprise Value | $139.2B |
| Equity Value | $129.6B |
| Upside / Downside | -10% |
Comparable Valuation
| Metric | Value |
|---|---|
| Comparable Coverage | Insufficient |
| Average Peer Quality | N/A |
| Median EV/EBITDA | N/A |
| Median P/E | N/A |
| Fair Value Low | N/A |
| Fair Value High | N/A |
| Fair Value Mid | N/A |
Comparable valuation is unavailable because there are not enough high-quality peers under the current coverage filters.
Risks
Specific risks are not detailed in the provided information. However, as a diversified technology and manufacturing company, Honeywell International Inc. is generally exposed to risks such as global economic downturns, supply chain disruptions, intense competition across its various segments, and regulatory changes. Additionally, the company's significant international presence exposes it to foreign exchange fluctuations and geopolitical risks.
Research Notes and Disclaimer
Important context around timing, methodology, and usage.
Published April 22, 2026. Market data is shown as of Apr 22, 2026 and financial statements run through Dec 31, 2025.
Valuation outputs are deterministic and rules-based. Narrative sections are generated from structured report data and should be read alongside the valuation tables and sensitivity analysis. The risk-free rate is sourced from cache:financial-modeling-prep.
This report is provided for information only and does not take into account your objectives, risk tolerance, or financial circumstances.
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