---
title: Honeywell Aerospace (HONA) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/hona
ticker: HONA
as_of: 2026-10-18
sector: Industrials
industry: Aerospace & Defense
---
# Honeywell Aerospace (HONA)

Honeywell Aerospace (HONA) closed at $168.09 on Oct 16, 2026, undervalued by 34% vs its model value of $253.60 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $168.09 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $253.60 |
| Price vs model | undervalued by 34% vs model |
| Range of that model | $143.75 – $558.28 |
| Market value | $53.3B |
| P/E (fiscal 2025) | 29.9 |
| Net margin (fiscal 2025) | 10.2% |
| Free cash flow (fiscal 2025) | $3.2B |
| Dividend yield (trailing twelve months) | 0.00% |
| Beta | 0.08 |
| Cost of capital (WACC) | 6.70% |
| Business classification | Mature & Stable (Moderate growth (~12% recent), Moderate margins (10% net margin), Moderately volatile earnings, Strong FCF yield (6.0%)) |

## On the stock lists

| List | Place | Figure | Page |
| --- | ---: | ---: | --- |
| Insider buying | #23 | $998,400 | https://sweetvaluelab.com/lists/insider-buying |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 18, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $253.60 | $143.75 | $558.28 |
| DCF · Perpetuity growth · 10y | cross check | $281.14 | $162.54 | $625.41 |
| DCF · EBITDA exit · 5y | cross check | $378.87 | $303.97 | $466.35 |
| DCF · EBITDA exit · 10y | cross check | $399.22 | $300.55 | $528.33 |
| P/E · peers | cross check | $276.90 | $261.93 | $327.82 |
| P/E · own history | cross check | $0.00 | $0.00 | $0.00 |
| PEG | sanity check | $158.24 | $158.24 | $158.24 |
| EV/EBITDA · peers | cross check | $340.81 | $313.70 | $406.24 |
| EV/Revenue · peers | cross check | $435.87 | $359.37 | $533.69 |
| Earnings power value | cross check | $150.28 | $122.77 | $193.66 |
| Dividend discount | cross check | $0.00 | $0.00 | $0.00 |

## Insider activity (SEC Form 4)

Past 90 days: 1 open-market buy ($998,400) and 0 open-market sales ($0); 10b5-1 plan sales included.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Sep 1, 2026 | ARNOLD CRAIG | Director | Open-market buy | 6,400 | $998,400 |
| Aug 3, 2026 | ARNOLD CRAIG | Director | Grant / award | 980 | $0 |
| Aug 3, 2026 | Lautar William Michael | VP, Controller & CAO | Grant / award | 1,469 | $0 |
| Aug 3, 2026 | Marinick David Andrew | Pres. & CEO, E & P Systems | Grant / award | 7,344 | $0 |
| Aug 3, 2026 | Marinick David Andrew | Pres. & CEO, E & P Systems | Grant / award | 5,020 | $0 |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Aug 5, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/2089271/000208927126000021/hona-20260627.htm |
| Aug 5, 2026 | 8-K | 2.02 Results of Operations (Earnings); 5.02 Departure/Election of Directors or Officers; 8.01 Other Events; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/2089271/000208927126000020/hona-20260723.htm |
| Jul 6, 2026 | S-4 | Merger registration | https://www.sec.gov/Archives/edgar/data/2089271/000119312526296207/d132076ds4.htm |
| Jun 29, 2026 | S-8 | Employee stock plan registration | https://www.sec.gov/Archives/edgar/data/2089271/000162828026045987/honeywell-sx8stockincentiv.htm |
| Jun 29, 2026 | S-8 | Employee stock plan registration | https://www.sec.gov/Archives/edgar/data/2089271/000162828026045985/honeywell-sx8401kandprsavi.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Soros | 2026-06-30 | 162,940 | $36.0M |
| Mairs & Power | 2026-06-30 | 100,041 | $22.1M |
| Dodge & Cox | 2026-06-30 | 4,009 | $886,310 |

3 tracked managers in all.

## About

Honeywell Aerospace, Inc. engages in the provision of aerospace and defense critical systems and technologies. It operates through the following segments: Electronic Solutions, Engines & Power Systems, and Control Systems. The Electronic Solutions segment supplies aerospace electronic systems and technologies such as avionics and navigation sensors and electromagnetic defensive solutions. The Engine & Power Systems segment manufactures propulsion systems, APUs, and electric power solutions. The Control Systems segment handles the supply of thermal and motion control systems that enable flight, life support, and safety for the aircraft. The company was founded in 1914 and is headquartered in Phoenix, AZ.

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Source: https://sweetvaluelab.com/stocks/hona (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.