What is Honeywell International Inc. (HON) DCF Fair Value and Intrinsic Value in 2026?

Honeywell International Inc. (HON) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is Honeywell International Inc.'s historical Return on Invested Capital (ROIC) and Moat Rating?

Honeywell International Inc. operates in the Industrials sector (Conglomerates) with an economic moat rating of WIDE. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is Honeywell International Inc.'s financial health rating and Piotroski F-Score?

Honeywell International Inc.'s balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor Honeywell International Inc. (HON) for quarterly SEC filing thesis breaks?

LocalAlpha audits Honeywell International Inc.'s 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksHON

HON

Honeywell International Inc.Industrials / ConglomeratesINTACT

Honeywell International Inc. engages in the industrial automation, building automation, and energy and sustainability solutions businesses in the United States, Europe, and internationally. The Industrial Automation segment provides automation control and instrumentation products and services; smart energy products; sensing technologies, including custom-engineered sensors and related services; gas detection technologies and personal protective equipment; and system design automation equipment, as well as software and analytics for manufacturing, distribution, and fulfillment operations. The Building Automation segment provides software applications for building control and optimization; sensors, switches, control systems, and instruments for energy management; access control; video surveillance; fire products; and installation, maintenance, and system upgrade services. The Energy and Sustainability Solutions segment, through its UOP business, delivers licensed process technology, equipment, engineering, catalysts, adsorbents, and services for refining, petrochemicals, low-carbon energy, gas and LNG, and industrial solutions, as well as connectivity, data integration, and software solutions. The company was formerly known as AlliedSignal, Inc. Honeywell International Inc. was founded in 1885 and is headquartered in Charlotte, North Carolina.

Share Price

$202.90

52W: $195.87 - $260.28

DCF Fair Value

$110.24

-84.1% Premium

Thesis Hub

P/E (TTM)

7.8x

ROIC

15.2%

Operating Margin

20.2%

FCF Yield

4.1%

Debt / Equity

1.85x

Piotroski Score

7/9

Altman Z-Score

3.13

Market Cap

$64.3B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($110.24)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$110.24

MOS Buy Target (-25%)

$82.68

Valuation Overlays: DCF Fair Value ($110.24) 25% MOS Buy Target ($82.68) Revised Graham ($564.85) Graham Number ($184.97)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$202.90

DCF Fair Value

$109.83

-84.7% Premium

Starting Free Cash Flow ($M)$2,610M

$100M$2,610M (Reported)$50,000M

Stage 1 Growth (Years 1-5)10.1%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)$25,800M

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$25.6B

PV of Terminal Value

$35.1B

Implied Enterprise Value

$60.6B

Implied Equity Value

$34.8B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$2,874	$3,164	$3,483	$3,835	$4,223	$4,413	$4,611	$4,819	$5,036	$5,262
Present Value (PV)	$2,636	$2,663	$2,690	$2,717	$2,744	$2,631	$2,522	$2,418	$2,318	$2,223

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-9.7% Premium

$184.98

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $26.00BVPS: $58.49

Revised Graham Formula+64.1% MoS

$564.85

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings3.9% Yield

$7.82 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $2.5BYield: 3.9%

Reverse DCF: Market Growth Expectation

FAIR BARRIER

8.4% CAGR (Next 10 Yrs)

At the current price of $202.90, the market is assuming the business will compound Free Cash Flow at 8.4% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

ℹ Fair expectations: Requires steady execution.

Autonomous Thesis Underwriting

Surveil HON with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Honeywell International Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 20.2% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: Honeywell International Inc. (HON) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Honeywell International Inc..

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Honeywell International Inc. has an estimated DCF intrinsic fair value of $110.24 per share compared to its current market price of $202.90. This represents an estimated 84.1% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $184.97.