Honeywell International Inc. (HON) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+105.7%

$462.93

vs $225.02 price

Levered DCF

$357.50

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

2.56

Grey zone

Rating

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	13.82×	12.74×	12.15×	14.45×	12.87×	15.48×	10.27×	7.18×
P/B	4.23×	3.9×	4.33×	4.3×	3.84×	4.22×	3.41×	2.67×
P/S	1.75×	2.09×	2.08×	2.02×	2.07×	2.27×	1.72×	1.16×
EV / EBITDA	10.66×	11.17×	10.36×	10.33×	9.21×	11.25×	7.85×	6.18×
Gross margin	36.9%	38.5%	37.5%	37.0%	35.9%	32.1%	33.7%	30.5%
Operating margin	17.5%	19.2%	18.5%	18.1%	18.0%	17.5%	18.7%	16.0%
Net margin	12.6%	16.4%	17.1%	14.0%	16.1%	14.6%	16.7%	16.2%
Current ratio	1.32×	1.31×	1.27×	1.25×	1.3×	1.47×	1.34×	1.29×
Debt / equity	2.24×	1.73×	1.36×	1.23×	1.11×	1.32×	0.9×	0.89×
Interest coverage	4.89×	6.36×	8.16×	15.52×	18.08×	15.87×	19.19×	18.27×
Dividend yield	4.6%	4.0%	4.2%	3.8%	3.7%	3.5%	3.9%	4.7%
Payout ratio	62.9%	50.9%	50.5%	54.8%	47.4%	54.2%	39.8%	33.6%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	30.6%	30.6%	35.7%	29.7%	29.8%	27.2%	33.2%	37.2%
Return on invested capital	9.2%	8.9%	10.3%	10.7%	9.5%	8.9%	12.4%	13.5%
Return on assets	6.4%	7.6%	9.2%	8.0%	8.6%	7.4%	10.5%	11.7%
Free cash flow yield	8.3%	7.2%	6.7%	6.3%	7.2%	7.2%	9.6%	11.6%
Earnings yield	7.2%	7.9%	8.2%	6.9%	7.8%	6.5%	9.7%	13.9%
Enterprise value	$87.5B	$94.3B	$82.3B	$82.6B	$81B	$83B	$70.7B	$55.4B
Net debt / EBITDA	2.69×	2.56×	1.71×	1.36×	1.1×	1.21×	0.85×	0.77×
Cash conversion cycle (days)	72	75	71	64	50	56	55	49