* GuruFocus does not store EPV value into our database if Average Maintenance CAPEX is 0.
Margin of Safety is
N/A.
The basic concept of EPV is that one should value a stock based on the current free cash flow of a company and not on future projections which may, or may not, come true. It is arguably a better way to analyze stocks than Discounted Cash Flow analysis that relies on highly speculative growth assumptions many years into the future. Assumption: Current profitability is sustainable.
Honeywell Aerospace (NAS:HONA) Earnings Power Value (EPV) Explanation
Assumption: Current profitability is sustainable.
Earnings power value (EPV) uses a very basic equation which assumes no growth, although it does rely on an assumption about the cost of capital as well as the fact that current earnings are sustainable. It also involves several adjustments to clean up the underlying Earnings figures.
Be Aware
Though using today's earnings in calculating Earnings Power Value, GuruFocus is normalizing these earnings to the business cycle. This eliminates the effects on profitability of valuing the firm at different points in the business cycle. This means that we are considering the average earnings over 5 years.
Honeywell Aerospace Earnings Power Value (EPV) Related Terms
Honeywell Aerospace Earnings Power Value (EPV) Historical Data
* Premium members only.
The historical data trend for Honeywell Aerospace's Earnings Power Value (EPV) can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Honeywell Aerospace Earnings Power Value (EPV) Chart
Honeywell Aerospace Annual Data
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Honeywell Aerospace Quarterly Data
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HONA vs NOC, TDG, LHX: Earnings Power Value (EPV) Comparison
For the Aerospace & Defense subindustry, Honeywell Aerospace's Earnings Power Value (EPV), along with its competitors' market caps and Earnings Power Value (EPV) data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Honeywell Aerospace Earnings Power Value (EPV) vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Honeywell Aerospace's Earnings Power Value (EPV) distribution charts can be found below:
* The bar in red indicates where Honeywell Aerospace's Earnings Power Value (EPV) falls into.
Honeywell Aerospace Earnings Power Value (EPV) Calculation
Earnings Power Value also known as just Earnings Power is a valuation technique popularised by Bruce Greenwald, an authority on value investing at Columbia University. It is arguably a better way to analyze stocks than Discounted Cash Flow analysis that relies on highly speculative growth assumptions many years into the future.
The basic concept of EPV is that one should value a stock based on the current free cash flow of a company and not on future projections which may, or may not, come true. This valuation tool excludes the potential growth that a company may have so that needs to be looked at separately. Since future growth is excluded from the analysis, only the maintenance capital expenditures are subtracted from after-tax EBIT (earnings before interest and taxes) and growth capex is ignored.
What does a Earnings Power Value (EPV) of $-46.86 mean?
Honeywell Aerospace (HONA) has a Earnings Power Value (EPV) of $-46.86 as of Mar26. Bruce Greenwald's earnings power value focuses on current earnings without factoring in future growth. View historical data on Honeywell Aerospace and its competitors.
Is Honeywell Aerospace's Earnings Power Value (EPV) too high?
Honeywell Aerospace's current Earnings Power Value (EPV) is $-46.86. Overall, Honeywell Aerospace has a GF Score™ of 15/100, reflecting its overall financial health beyond just this single metric.
How does Honeywell Aerospace's Earnings Power Value (EPV) compare to NOC and TDG?
Honeywell Aerospace's Earnings Power Value (EPV) of $-46.86 can be compared against companies in the Aerospace & Defense industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Earnings Power Value (EPV) for an Aerospace & Defense company?
A good Earnings Power Value (EPV) depends on the Aerospace & Defense industry context. However, Earnings Power Value (EPV) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Earnings Power Value (EPV) mean?
A high Earnings Power Value (EPV) can signal that a stock is expensive relative to its fundamentals. Bruce Greenwald's earnings power value focuses on current earnings without factoring in future growth. View historical data on Honeywell Aerospace and its competitors. Honeywell Aerospace's current Earnings Power Value (EPV) is $-46.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Honeywell Aerospace stock overvalued right now?
Honeywell Aerospace (HONA) has a current Earnings Power Value (EPV) of $-46.86. The current Earnings Power Value (EPV) is $-46.86. Honeywell Aerospace's overall GF Score™ is 15/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Earnings Power Value (EPV) calculated?
Earnings Power Value (EPV) is calculated from a company's financial statements. For Honeywell Aerospace (HONA), the current Earnings Power Value (EPV) is $-46.86 as of Mar26. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Honeywell Aerospace Inc operates as an aerospace and defense supplier of systems and technologies that enable the production, maintenance, and safe operation of aerospace and defense platforms. Its products support original equipment manufacturer (OEM), government, defense prime contractor, and aircraft operator customers across the Commercial Air Transport, Business Aviation, and Defense and Space end markets. The company has three operating segments: Electronic Solutions (ES), Engines & Power Systems (E&PS), and Control Systems (CS ). The majority of revenue is derived from the Electronic Solutions segment, which offers Avionics, Navigation and Sensors, Electromagnetic Defensive Solutions, and Space systems. Geographically, the maximum revenue is generated from the United States.
15GF Score
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Earnings Power Value (EPV) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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