HON
Honeywell International Inc.
$226.42
Stable Earnings Power
65%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Fair Value
Trading 8.9% below fair value
You pay
$226.42
Bear
$198.90
Fair
$248.62
Bull
$298.34
Bear
$198.90
-12.2%
$16.45 × 12x P/E
Fair
$248.62
+9.8%
$16.45 × 15x P/E
Bull
$298.34
+31.8%
$16.45 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
13.8x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $254.00 from 28 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $248.62 per share.
Warnings
Dividend-based valuation: $121.03 (below our primary estimate by 51%). Large gaps may signal the dividend doesn't reflect full earning power.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples