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Honeywell International (Honeywell International) Intrinsic Value: Projected FCF

: $94.40 (As of Today)
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Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2024-04-24), Honeywell International's Intrinsic Value: Projected FCF is $94.40. The stock price of Honeywell International is $196.17. Therefore, Honeywell International's Price-to-Intrinsic-Value-Projected-FCF of today is 2.1.

The historical rank and industry rank for Honeywell International's Intrinsic Value: Projected FCF or its related term are showing as below:

HON' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 1.62   Med: 2.15   Max: 2.4
Current: 2.08

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Honeywell International was 2.40. The lowest was 1.62. And the median was 2.15.

HON's Price-to-Projected-FCF is ranked worse than
77.97% of 404 companies
in the Conglomerates industry
Industry Median: 0.855 vs HON: 2.08

Honeywell International Intrinsic Value: Projected FCF Historical Data

The historical data trend for Honeywell International's Intrinsic Value: Projected FCF 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.

* Premium members only.

Honeywell International Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 85.17 88.76 93.67 94.61 94.40

Honeywell International Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Intrinsic Value: Projected FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 94.61 89.31 90.95 92.09 94.40

Competitive Comparison

For the Conglomerates subindustry, Honeywell International's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF 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 International Price-to-Projected-FCF Distribution

For the Conglomerates industry and Industrials sector, Honeywell International's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Honeywell International's Price-to-Projected-FCF falls into.



Honeywell International Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get Honeywell International's Free Cash Flow(6 year avg) = $5,227.52.

Honeywell International's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Dec23)*0.8)/Shares Outstanding (Diluted Average)
=(9.5203515959648*5227.52+15856*0.8)/661.600
=94.40

* 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 International  (NAS:HON) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

Honeywell International's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=196.17/94.396354859338
=2.08

* 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 International Intrinsic Value: Projected FCF Related Terms

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Honeywell International (Honeywell International) Business Description

Address
855 South Mint Street, Charlotte, NC, USA, 28202
Honeywell traces its roots to 1885 with Albert Butz's firm, Butz-Thermo Electric Regulator, which produced a predecessor to the modern thermostat. Today, Honeywell is a global multi-industry behemoth with one of the largest installed bases of equipment. It operates through four business segments: aerospace, building technologies, performance materials and technologies, and safety and productivity solutions. In recent years, the firm has made several portfolio changes, including the addition of Intelligrated in 2016, as well as the spinoffs of Garrett Technologies and Resideo in 2018. In 2019, the firm launched Honeywell Forge, its enterprise performance management software solution that leverages the firm's domain expertise in buildings, airlines, and critical infrastructure.
Executives
Darius Adamczyk officer: President and CEO, PMT 855 S. MINT STREET, CHARLOTTE NC 28202
James E Currier officer: President & CEO, Aerospace 855 S. MINT STREET, CHARLOTTE NC 28202
Vimal Kapur officer: President & CEO, HBT C/O HONEYWELL 300 S. TRYON STREET, CHARLOTTE NC 07950
Billal Hammoud officer: President & CEO, HBT 855 S. MINT STREET, CHARLOTTE NC 28202
George Koutsaftes officer: President and CEO, SPS 855 S. MINT STREET, CHARLOTTE NC 28202
Karen Mattimore officer: SrVP, HR and Communications 300 SOUTH TRYON STR, CHARLOTTE NC 28202
Lucian Boldea officer: President and CEO, PMT 855 S. MINT STREET, CHARLOTTE NC 28202
Robin Watson director 855 S. MINT STREET, CHARLOTTE NC 28202
Gregory P Lewis officer: SVP & Chief Financial Officer C/O HONEYWELL INTERNATIONAL INC., 300 SOUTH TRYON STREET, CHARLOTTE NC 28202
Kevin Dehoff officer: President and CEO, HCE 855 S. MINT STREET, CHARLOTTE NC 28202
Rose Lee director C/O CROWN HOLDINGS, INC., 770 TOWNSHIP LINE ROAD, YARDLEY PA 19067
Que Dallara officer: Pres/CEO -Connected Enterprise C/O HONEYWELL 300 S. TRYON STREET, CHARLOTTE NC 28202
Doug Wright officer: President & CEO, HBT 855 S. MINT STREET, CHARLOTTE NC 28202
D Scott Davis director 115 TABOR ROAD, MORRIS PLAINS NJ 07950
Rajeev Gautam officer: Pres. and CEO, PMT C/O HONEYWELL, 300 S. TRYON STREET, CHARLOTTE NC 28202