Public Research Note

The Equity Note

Honeywell (HON) Stock Analysis: Revenue Growth, Net Income and Price Target

This HON report focuses on Honeywell revenue growth, net income trend, long-term growth prospects, target price, and valuation assumptions.

Honeywell International Inc. screens HOLD with a DCF-based target price of $202.92, versus a current price of $213.97 and modeled upside of -5.2%.

HOLDIndustrialsDCF-led valuation

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Current View
HOLD$202.92 target vs $213.97

Current Price

$213.97

Target Price

$202.92

Market Cap

$135.6B

Published

June 8, 2026

Market Data

Jun 5, 2026
DCF Value / Share iDCFDiscounted cash flow values a business by forecasting future free cash flow and discounting it back to the present.Value/share = (PV of forecast FCF + PV of terminal value - net debt) / diluted shares$202.92

WACC 7.9% | g 2.5%

Comparable MidpointN/A

Insufficient peer coverage for a publishable comps set.

Upside / Downside-5.2%

Enterprise value $140.1B

Diluted Shares iDiluted sharesShare count adjusted for options and other securities that could convert into common stock.Value/share = equity value / diluted shares642,800,000

Net debt $9.7B

HON Valuation Focus

The search terms investors use for this type of report usually center on valuation, intrinsic value, WACC, peer multiples, and the target price.

Stock Valuation

Honeywell International Inc. (HON) is valued here with a $202.92 target price versus a current price of $213.97.

Intrinsic Value

The base DCF intrinsic value is $202.92 per share using a 7.9% WACC and 2.5% terminal growth assumption.

Peer Multiples

Comparable valuation is not blended into the published target because the available peer set was not strong enough for a reliable range.

Growth and Investment Outlook

This section keeps the long-term growth, investment outlook, and historical revenue/net income trend visible before the detailed valuation tables.

Long-Term Growth Prospects

The model starts from 3.1% revenue growth and fades toward 3.5% steady-state growth under a platform forecast profile.

Investment Outlook

The current public outlook is HOLD, with a $202.92 target price and -5.2% modeled upside/downside. The main valuation cross-check is the DCF value of $202.92 per share.

Analyst Estimate Coverage

Analyst estimate inputs are used where available for forecast years 1, 2, 3. This page is not an external analyst-ratings feed; it is a public valuation note built from the available report data.

Fiscal yearRevenueRevenue growthNet incomeNet income growth
2023$33.0B-6.9%$5.7B13.9%
2024$34.7B5.2%$5.7B0.8%
2025$37.4B7.8%$4.7B-17.1%

Investment Summary

The call, the valuation anchor, and the main risk in one view.

Recommendation

HOLD Honeywell International Inc. is rated HOLD with a target price of $202.92 versus the current price of $213.97.

Valuation Anchor

The DCF implies $202.92 per share. Comparable valuation is excluded here because the available peer set was not strong enough for a reliable range.

Key Risk

First, revenue growth could decelerate faster than the model fade path, especially if current market demand is cyclical.

Key Data

Quick facts investors usually scan first.

Sector
Industrials
Industry
Conglomerates
Exchange
NASDAQ
Market Cap
$135.6B
Revenue
$37.4B
Free Cash Flow
$5.4B

Latest Update / What Changed

Updates focus on what changed in the rating, target price, valuation assumptions, peer context, and main risks.

Rating

Still HOLD

Target Change

+$0.00 versus the prior published target of $202.92.

Prior Version

Last captured on 6/7/2026 with -5.2% modeled upside.

Pro includes the full change log, watchlist alerts, and weekly digest for readers following multiple names.

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.

Last 5 years of monthly price observations (60 points).

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$202.92
Comparable MidpointN/A
Published Target$202.92

Base-case DCF and the center cell should reconcile closely because both use the same blended terminal-value method (7.9% WACC / 2.5% g). The published target currently equals the DCF output because comparable coverage was insufficient.

Base-case cell: $203.03 using 7.9% WACC and 2.5% terminal growth.

WACC \ g1.5%2%2.5%3%3.5%
5.9%$241.13$255.11$273.22$297.59$332.17
6.9%$211.76$220.49$231.20$244.67$262.11
7.9%$190.17$196.05$203.03$211.44$221.76
8.9%$173.29$177.48$182.33$188.01$194.73
9.9%$159.52$162.63$166.17$170.21$174.88

Peer Multiples

Simple comparable valuation cross-check using selected public-market peers.

Comparable valuation is not shown because fewer than three suitable peers had usable valuation data after screening for industry, size, and exchange.

Pro Toolkit

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Revision History

Pro keeps the revision trail for refreshed reports so changes in target price, rating, and assumptions are easy to inspect.

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How to Read the Valuation

Plain-English definitions for the main inputs and outputs.

Discount Rate iWACCWeighted average cost of capital is the discount rate used to value future cash flows, blending the cost of equity and debt.WACC = (E/V) x Re + (D/V) x Rd x (1 - T)

The base-case valuation discounts forecast cash flows using a WACC of 7.9%. The cost of equity starts from a 10-year Treasury yield of 4.6% as of Jun 5, 2026. Higher discount rates reduce present value, while lower ones increase it.

Terminal Assumption iTerminal growthThe long-run growth assumption used after the explicit forecast period to estimate continuing value.TV = FCF x (1 + g) / (WACC - g)

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.

Forecast Curve

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.

Cross-Checks iEV/EBITDAEnterprise value divided by EBITDA, a common multiple for comparing companies with different capital structures.EV/EBITDA = enterprise value / EBITDA iP/EPrice-to-earnings compares the stock price to earnings per share and is a common equity valuation multiple.P/E = share price / earnings per share

Peer multiples anchor a market-based valuation range and help test whether the DCF output looks reasonable relative to similar businesses. If the available peer set is not strong enough, the published target stays DCF-only.

Honeywell International Inc. (HON)

Company Snapshot

  • Sector: Industrials
  • Industry: Conglomerates
  • Exchange: NASDAQ
  • Current Price: $213.97
  • Target Price: $202.92
  • Recommendation: HOLD
  • Market Cap: $135.6B

Honeywell International Inc. screens HOLD with a DCF-based target price of $202.92, versus a current price of $213.97 and modeled upside of -5.2%.

Investment Thesis

Honeywell International Inc. screens as a HOLD because the automated valuation stack points to -5.2% upside versus the current market price. The DCF carries most of the target price and is supported by a business that still compounds from a $37.4B revenue base while sustaining 18.2% EBIT margins.

Business Overview

Honeywell International Inc. operates in conglomerates within the industrials sector. The company is modeled as a US-listed business with revenue in USD and exchange exposure through NASDAQ. The current report structure is built for equity research use cases: company snapshot, thesis, financial analysis, valuation, and risk framing.

Financial Analysis

Historical statements indicate a business with improving operating leverage and positive free cash flow generation. Our rules-based forecast extends that pattern over five years using normalized revenue growth, margin stabilization, capital intensity, and working capital behavior. DCF fair value lands at $202.92 per share, while the blended target price after applying comparable valuation support is $202.92. Comparable valuation is treated as unavailable because the available peer set is not strong enough for a reliable public range.

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 $202.92
Forecast Profile platform
Starting Growth 3.1%
Steady-State Growth 3.5%
Risk-Free Rate 4.6%
Equity Risk Premium 4.5%
WACC 7.9%
Terminal Growth 2.5%
Exit Multiple 16x
Enterprise Value $140.1B
Equity Value $130.4B
Upside / Downside -5.2%

Comparable Valuation

Metric Value
Comparable Coverage Insufficient
Peer Set Support 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 suitable peers with usable valuation data.

Risks

Key risks remain deterministic rather than narrative-only. First, revenue growth could decelerate faster than the model fade path, especially if current market demand is cyclical. Second, margin normalization may prove too optimistic if price competition, mix shift, or incremental operating expense dilute returns. Third, valuation is sensitive to the discount rate: WACC at 7.9% and terminal growth at 2.5% are reasonable base assumptions, but even modest moves in either direction can materially shift intrinsic value.

Research Notes and Disclaimer

Important context around timing, methodology, and usage.

Freshness

Published June 8, 2026. Market data is shown as of Jun 5, 2026 and financial statements run through Dec 31, 2025.

Methodology

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 financial-modeling-prep.

Not Investment Advice

This report is provided for information only and does not take into account your objectives, risk tolerance, or financial circumstances.

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