Honeywell Stock Valuation

HON Stock  USD 204.04  1.35  0.67%   
What is the intrinsic value of Honeywell stock? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Honeywell International, is its stock price multiplied by the total number of shares outstanding, calculating Honeywell International's enterprise value requires a different approach. It uses Honeywell International's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
As of 7th of February 2023, Free Cash Flow is likely to drop to about 5.7 B. In addition to that, Enterprise Value is likely to drop to about 151.7 B.
Honeywell International retains a regular Real Value of $205.98 per share. The prevalent price of the firm is $204.04. At this time, the firm appears to be fairly valued. Our model calculates the value of Honeywell International from evaluating the firm fundamentals such as Return On Equity of 0.30 %, current valuation of 153.38 B, and Return On Asset of 0.07 % as well as inspecting its technical indicators and Probability Of Bankruptcy. In general, we encourage obtaining undervalued assets and abandoning overvalued assets since, at some point, asset prices and their ongoing real values will come together.
  
Honeywell International Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Honeywell International's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Honeywell Most Recent Valuation Data

Dividend Share
3.92
Beta
1.1346
Fiscal Year End
December
Property Plant And Equipment Net
5.5 B
Enterprise Value
153.4 B
Fairly Valued
Today 204.04
Please note that Honeywell International's price fluctuation is very steady at this time. Calculation of the real value of Honeywell International is based on 3 months time horizon. Increasing Honeywell International's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Honeywell International is useful when determining the fair value of the Honeywell stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Honeywell International. Since Honeywell International is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Honeywell Stock. However, Honeywell International's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
183.64
Downside
205.98
Real Value
207.31
Upside
Estimating the potential upside or downside of Honeywell International helps investors to forecast how Honeywell stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Honeywell International more accurately as focusing exclusively on Honeywell International's fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
199.56207.73215.90
Details
Hype
Prediction
LowEstimated ValueHigh
202.71204.04205.37
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
2.542.582.62
Details
16 Analysts
Consensus
LowTarget PriceHigh
221.00237.92265.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Honeywell International's intrinsic value based on its ongoing forecasts of Honeywell International's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Honeywell International's closest peers. When choosing an evaluation method for Honeywell International, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Honeywell International Investments

2.33 Billion

Honeywell Valuation Drivers Correlation

Many accounts on the financial statements of Honeywell International are highly interrelated and sometimes correlated. Consequently, when conducting Honeywell's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Honeywell
Click cells to compare fundamentals

Honeywell Valuation Trend

Knowing Honeywell International's actual value is paramount for traders to make sound investment determinations. Honeywell International's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Honeywell International's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Honeywell International's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Honeywell Market Cap

Honeywell International is one of the top stocks in market capitalization category among related companies. Market capitalization of Industrials industry is currently estimated at about 140.73 Billion. Honeywell International totals roughly 136.27 Billion in market capitalization claiming about 97% of equities under Industrials industry.
Capitalization  Workforce  Valuation  Total debt  Revenue

Honeywell International Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Honeywell International's current stock value. Our valuation model uses many indicators to compare Honeywell International value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Honeywell International competition to find correlations between indicators driving Honeywell International's intrinsic value. More Info.
Honeywell International is one of the top stocks in price to earning category among related companies. It is one of the top stocks in annual yield category among related companies . The ratio of Price to Earning to Annual Yield for Honeywell International is about  1,416 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Honeywell International by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Honeywell International's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Honeywell International's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Honeywell International's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Honeywell International and how it compares across the competition.

About Honeywell International Valuation

The stock valuation mechanism determines the current worth of Honeywell International on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Honeywell International. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Honeywell International based exclusively on its fundamental and basic technical indicators. By analyzing Honeywell International's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Honeywell International's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Honeywell International. We calculate exposure to Honeywell International's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Honeywell International's related companies.
Fiscal Year End
December
Industry
Conglomerates
Concentration
Industrial Conglomerates
Full Time Employees
99 K
Service Category
Industrial Conglomerates
Last ReportedProjected for 2023
Gross Profit12.6 B13.1 B
Profit Margin 14.50  12.27 

8 Steps to conduct Honeywell International's Valuation Analysis

Company's valuation is the process of determining the worth of a company in monetary terms. It estimates a company's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Honeywell International's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Honeywell International's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Honeywell International's revenue streams: Identify Honeywell International's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Honeywell International's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Honeywell International's growth potential: Evaluate Honeywell International's management, business model, and growth potential.
  • Determine Honeywell International's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Honeywell International's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
Honeywell International's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Honeywell International's value is low or high relative to the company's performance and growth projections. Determining the market value of Honeywell International can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Honeywell International represents a small ownership stake in the entity. As a stockholder of Honeywell, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Honeywell International Dividends Analysis For Valuation

As of 7th of February 2023, Dividend Yield is likely to grow to 0.0173, while Payment of Dividends and Other Cash Distributions is likely to drop (2.5 B). . As of 7th of February 2023, Price to Earnings Ratio is likely to grow to 30.38, while Accumulated Retained Earnings Deficit are likely to drop about 42.5 B.
Last ReportedProjected for 2023
Payment of Dividends and Other Cash Distributions-2.4 B-2.5 B
Dividend Yield 0.0162  0.0173 
Dividends per Basic Common Share 4.34  3.75 
There are various types of dividends Honeywell International can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Honeywell shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Honeywell International directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Honeywell pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Honeywell International by the value of the dividends paid out.

Honeywell International Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Honeywell International does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quarterly Earnings Growth Y O Y0.267

Honeywell International Current Valuation Indicators

Valuation refers to the process of determining the present value of Honeywell International and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Honeywell we look at many different elements of the entity such as Honeywell's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Honeywell International's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Honeywell International's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Honeywell International, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Honeywell International's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Honeywell International's worth.
Please check Risk vs Return Analysis. You can also try Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

Complementary Tools for analysis

When running Honeywell International price analysis, check to measure Honeywell International's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Honeywell International is operating at the current time. Most of Honeywell International's value examination focuses on studying past and present price action to predict the probability of Honeywell International's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Honeywell International's price. Additionally, you may evaluate how the addition of Honeywell International to your portfolios can decrease your overall portfolio volatility.
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Is Honeywell International's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Honeywell International. If investors know Honeywell will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Honeywell International listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.267
Market Capitalization
136.3 B
Quarterly Revenue Growth
0.056
Return On Assets
0.0734
Return On Equity
0.2956
The market value of Honeywell International is measured differently than its book value, which is the value of Honeywell that is recorded on the company's balance sheet. Investors also form their own opinion of Honeywell International's value that differs from its market value or its book value, called intrinsic value, which is Honeywell International's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Honeywell International's market value can be influenced by many factors that don't directly affect Honeywell International's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Honeywell International's value and its price as these two are different measures arrived at by different means. Investors typically determine Honeywell International value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Honeywell International's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.