Honeywell International Inc. (HON) DCF Valuation
Transparent DCF models put Honeywell International Inc. (HON)'s fair value in a range of $88.90 – $225.04 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $215.70 sits within that range — roughly fairly valued on these assumptions.
Reverse DCF: at today's $215.70, the market is pricing in roughly +14.6%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of -4.5%. The price is betting on acceleration above its track record.
Current Price
$215.70
Fair-Value Range
$88.90 – $225.04
Market-Implied Growth
+14.6%/yr
vs -4.5% 5Y actual
HON DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $4.8B · 0.63B shares · net debt $22.1B
Estimated Fair Value
$88.90
-58.8% vs $215.70
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $215.70; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $119 | $127 | $136 | $147 | $161 |
| 9.0% | $97.25 | $103 | $109 | $116 | $125 |
| 10.0% | $80.72 | $84.56 | $88.90 | $93.87 | $99.60 |
| 11.0% | $67.73 | $70.54 | $73.68 | $77.22 | $81.23 |
| 12.0% | $57.26 | $59.37 | $61.70 | $64.30 | $67.20 |
About Honeywell International Inc.
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.
- Sector
- Industrials
- Industry
- Conglomerates
- CEO
- Vimal Kapur