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Honeywell International Inc (HON) Fair Value & Analysis

Industrials · US · Market cap $71.7B

HI Honeywell International Inc logo Honeywell International Inc HON · US
Price$240.74
Fair Value$219.30
Upside-8.9%
Quality66/100
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Healthy Growth
Solidly profitable · 10.9% net margin
High debt · generates free cash flow
4.16% dividend yield
Mixed vs. peers (7/15)
Wide moat 73/100
Evidence: High Range $164.47 – $274.12 Share as image

Fair value as of: Jul 17, 2026

From 24 valuation models · updated 21 days ago

Fair value updated Jul 17, 2026, revised from $109.65 to $219.30 (+100.0%) since Jun 26, 2026. Share price +7.0% over the past month.

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

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • Our model range runs from $164.47 (bear) to $274.12 (bull), base $219.30. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 66/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

$258.71 $152.37 Fair Value $219.30 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 17, 2026.

How to read this chart

60‑month range $152.37 – $258.71 · fair‑value band $164.47 – $274.12 · the $240.74 price screens above the $219.30 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 17, 2026.

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Analysis

Honeywell International Inc (HON) currently trades at $240.74, while our model-based Fair Value estimate is $219.30, implying the stock looks roughly 8.9% fairly valued today. We read business quality at 66/100 (solid quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: 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 Jul 17, 2026

Our scenario range runs from $164.47 (bear case) to $274.12 (bull case); at $240.74, 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 2% below its 52-week high and 30% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -14% fair-value upside, at -9%, HON screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.

Model BearBaseBull Evidence
Highest evidence
Growth DCF $136.18 $202.73 $297.73 80
Residual Income $91.48 $113.73 $467.41 76
Rev-Margin DCF $129.63 $218.42 $314.87 74
All 24 models by family
DCF Models
FCF DCF $130.07 $199.90 $304.40 38
Owner Earnings $121.51 $187.94 $287.36 31
5Y Revenue Exit $129.63 $215.98 $325.38 39
5Y EBITDA Exit $153.03 $256.64 $375.41 41
5Y P/E Exit $141.57 $236.73 $333.93 38
10Y Revenue Exit $122.96 $199.27 $290.02 36
10Y EBITDA Exit $142.73 $226.43 $325.22 37
10Y P/E Exit $135.63 $213.13 $296.04 35
Earnings-Based
Graham-Dodd $101.50 $203.15 $255.25 54
EPV $120.85 $148.70 $173.07 59
Dividend Discount
Gordon GGM $86.25 $123.85 $162.69 70
DDM Multi-Stage $86.25 $121.42 $162.19 61
Multiples
P/E Multiple $223.89 $298.52 $373.15 63
P/S Multiple $190.31 $253.74 $317.18 58
P/B Multiple $109.65 $146.20 $182.75 55
EV/EBIT $233.57 $326.84 $420.11 53
EV/EBITDA $198.55 $280.16 $361.76 54
EV/Revenue $142.37 $223.20 $304.04 43
Asset-Based
NCAV (Graham) $24.37 $32.65 $48.73 50
Growth DCF
Growth DCF $136.18 $202.73 $297.73 80
Rev-Margin DCF $129.63 $218.42 $314.87 74
Economic Profit
Residual Income $91.48 $113.73 $467.41 76
ROIC Compounder $125.71 $161.90 $199.60 72
Growth Earnings
Growth-Adj P/E $162.70 $232.43 $302.16 68

Widest divergence: Multiples ($253.74) versus Asset-Based ($32.65). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $37.7B
Revenue growth (YoY) +2.4%
Net margin 10.9%
Return on equity 24.3%
Free cash flow $5.4B FY2025
P/E ratio 34.8
More key figures
Operating margin 21.0%
EPS (TTM) $6.25
Dividend yield 2.1%
EPS growth (YoY) -41.9%
Net debt $22.1B FY2025

Figures from reported company fundamentals · as of Jul 17, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 66/100

Of which business quality 62 · Market factors (momentum, volatility) 59

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 71
Calm price path (market factor)
Momentum 49
Price trend over the last 3–12 months (market factor)
52W Momentum 61
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.

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. growth/yr (3Y)
+1.8%
Avg. growth/yr (5Y)
+2.8%
Avg. growth/yr (40Y)
+3.6%
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

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

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Conglomerates · 371 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 66 · Top 25%
Fair Value upside −9% · 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) 4.2% · Top 25%
Debt / equity 1.76× · Higher than 75% of peers

Valuation Multiples vs Conglomerates median · lower = cheaper

P/E (TTM) 18.1× · Pricier than median
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

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.

VALUE 21 · sector 19
FUTURE 12 · sector 16
PAST 97 · sector 20
HEALTH 12 · sector 89
DIVIDEND 83 · sector 40

Insider activity: 44/100

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Conglomerates stocks, each showing price versus our Fair Value estimate (as of Jul 17, 2026).

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SRF Limited SRF ₹2,875 ₹1,053 -63%
Empresas Copec S.A COPEC 6,330 CLP 10,879 CLP +72%
Posco International Corporation 047050 50,900 KRW 61,248 KRW +20%
Tube Investments of India Limited TIINDIA ₹2,940 ₹559.30 -81%
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Thermax Limited THERMAX ₹4,809 ₹1,087 -77%

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Frequently asked questions

Is Honeywell International Inc (HON) overvalued or undervalued?
As of Jul 17, 2026, our model estimates a fair value of $219.30 versus a price of $240.74, about −9% (fairly valued).
What is the fair value of HON?
Our model-based fair value for Honeywell International Inc is $219.30 (as of Jul 17, 2026), built from audited fundamentals. The current price is $240.74.
What is the quality score of HON?
Honeywell International Inc has a Quality Score of 66/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals 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 Jul 17, 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 2.08% relative to its recent price (as of Jul 17, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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