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Honeywell International Inc. — Intrinsic Value & Fair Price

HON
NASDAQIndustrialsConglomeratesCIK 0000773840honeywell.comAbout HON
Last close · Oct 16, 2026211.41+0.91 (+0.43%)
Market cap$67.0B
Model value · DCF · Perpetuity growth · 5y
72.91
Honeywell closed at $211.41 — overvalued by 190% vs model.
36.96the model's range227.83

DCF · Perpetuity growth · 5y leads for dividend payer — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
51.11 – 198.71
Wall St. target
255.00 17% below
Above model, 1y
21 of 21 days

Price and model value

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What the marks mean
Daily close

Dividends

Quarterly · as of Oct 16, 2026
Yield, trailing 12 months
2.10%
Past 2 years
low 1.87%high 2.56%
Dividends per share, a year at a time
$3.90Aug ’21$4.11Aug ’22$4.32Aug ’23$4.53Aug ’24$4.74Aug ’25$4.44TTM
Dividends / free cash flow, FY2025
54.9%
Raised
15 years in a row
Growth, 5 yrs
2.6% a year
Last change
−43.9% · Aug 2026
Every payment, with ex-dates · latest $0.70, paid Sep 4, 2026

Research on HON

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How it is valued

Valued asDividend Payer
Low/slowing growth (~1% recent)Moderate margins (13% net margin)Strong dividend yieldHighly cyclical earningsHigh leverage (D/E 2.5x)Strong FCF yield (8.1%)
What growth the price implies: the reverse DCF

Key figures

FY2025
P/E
28.7×
EV / EBITDA
10.9×
FCF yield
8.0%
Dividend yield, TTM
2.10%
Beta
0.89
Cost of capital (WACC)
7.30%
Full financials

Analyst actions

third-party, quoted
10-15Mizuho Securities · target255.00
09-24Wells Fargo · target231.00
08-31Morgan Stanley · target250.00
07-28B of A Securities · “Neutral” from “Underperform”upgrade
Ratings, targets and estimates

The weekly

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About Honeywell

Honeywell International Inc. functions as a global leader in diversified technology and manufacturing. Its Aerospace division furnishes a comprehensive array of products and services for the aviation and space industries. This includes crucial components like auxiliary power units, propulsion systems, integrated avionics, environmental control mechanisms, and electrical power solutions. The segment also supplies engine controls, flight safety systems, communication and navigation hardware, and advanced data and software applications. Additionally, it provides radar, surveillance systems, aircraft lighting, sophisticated instruments, satellite and space components, and aircraft wheels and brakes. Essential support services cover spare parts, repairs, overhauls, maintenance, thermal systems, and wireless connectivity management. The Honeywell Building Technologies unit focuses on creating smarter, safer, and more efficient structures. It develops software for optimizing and controlling building functions, alongside sensors, switches, control systems, and instrumentation for energy management. Offerings extend to access control systems, video surveillance, fire detection products, and the installation, upkeep, and upgrading of these systems. Within its Performance Materials and Technologies division, the company delivers solutions for automation control, instrumentation, and associated software and services. It also provides catalysts, adsorbents, specialized equipment, and consulting expertise. This segment supplies materials essential for manufacturing diverse end products, such as bullet-resistant armor, nylon, computer chips, and pharmaceutical packaging. Furthermore, it produces environmentally friendly materials with reduced and low global-warming potential, utilizing hydrofluoro-olefin technology. The Safety and Productivity Solutions group equips workers and industries with a wide range of products. These comprise personal protective equipment, apparel, gear, and footwear, alongside advanced gas detection technology. It offers cloud-based notification and emergency messaging systems, mobile devices and software, and solutions for supply chain and warehouse automation, including both equipment and software. Custom-engineered sensors, switches, and controls, as well as data and asset management productivity software solutions, also fall under this division. Established in 1906, Honeywell is headquartered in Charlotte, North Carolina.

CEO
Vimal Kapur
Headquarters
Charlotte, NC
Employees
101,000
IPO
2001-02-21
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.