Intrinsic value of Honeywell International - HON

Previous Close

$147.77

  Intrinsic Value

$231.98

stock screener

  Rating & Target

str. buy

+57%

Previous close

$147.77

 
Intrinsic value

$231.98

 
Up/down potential

+57%

 
Rating

str. buy

We calculate the intrinsic value of HON stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 109.7

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  8.30
  7.97
  7.67
  7.41
  7.17
  6.95
  6.75
  6.58
  6.42
  6.28
  6.15
  6.04
  5.93
  5.84
  5.75
  5.68
  5.61
  5.55
  5.50
  5.45
  5.40
  5.36
  5.32
  5.29
  5.26
  5.24
  5.21
  5.19
  5.17
  5.16
Revenue, $m
  43,898
  47,397
  51,034
  54,813
  58,741
  62,822
  67,065
  71,477
  76,066
  80,842
  85,814
  90,994
  96,391
  102,020
  107,891
  114,018
  120,416
  127,100
  134,084
  141,386
  149,023
  157,012
  165,373
  174,125
  183,290
  192,889
  202,945
  213,481
  224,524
  236,099
Variable operating expenses, $m
  27,028
  29,001
  31,051
  33,182
  35,396
  37,698
  40,090
  42,577
  45,165
  47,857
  48,384
  51,304
  54,347
  57,520
  60,831
  64,286
  67,893
  71,661
  75,599
  79,716
  84,022
  88,526
  93,240
  98,175
  103,342
  108,754
  114,424
  120,364
  126,591
  133,117
Fixed operating expenses, $m
  8,613
  8,803
  8,997
  9,194
  9,397
  9,604
  9,815
  10,031
  10,251
  10,477
  10,707
  10,943
  11,184
  11,430
  11,681
  11,938
  12,201
  12,469
  12,744
  13,024
  13,310
  13,603
  13,903
  14,208
  14,521
  14,840
  15,167
  15,501
  15,842
  16,190
Total operating expenses, $m
  35,641
  37,804
  40,048
  42,376
  44,793
  47,302
  49,905
  52,608
  55,416
  58,334
  59,091
  62,247
  65,531
  68,950
  72,512
  76,224
  80,094
  84,130
  88,343
  92,740
  97,332
  102,129
  107,143
  112,383
  117,863
  123,594
  129,591
  135,865
  142,433
  149,307
Operating income, $m
  8,257
  9,594
  10,986
  12,437
  13,948
  15,521
  17,161
  18,869
  20,650
  22,508
  26,723
  28,747
  30,861
  33,069
  35,379
  37,795
  40,323
  42,970
  45,742
  48,646
  51,691
  54,883
  58,230
  61,742
  65,427
  69,294
  73,354
  77,616
  82,092
  86,792
EBITDA, $m
  11,262
  12,657
  14,110
  15,623
  17,199
  18,841
  20,550
  22,332
  24,189
  26,126
  28,147
  30,256
  32,459
  34,762
  37,169
  39,686
  42,320
  45,078
  47,966
  50,992
  54,163
  57,487
  60,974
  64,630
  68,467
  72,494
  76,720
  81,157
  85,816
  90,709
Interest expense (income), $m
  329
  966
  1,152
  1,349
  1,552
  1,764
  1,984
  2,213
  2,451
  2,698
  2,956
  3,223
  3,502
  3,792
  4,095
  4,410
  4,740
  5,083
  5,442
  5,816
  6,208
  6,617
  7,045
  7,493
  7,962
  8,452
  8,966
  9,504
  10,068
  10,658
  11,277
Earnings before tax, $m
  7,291
  8,441
  9,638
  10,884
  12,183
  13,537
  14,947
  16,418
  17,952
  19,552
  23,500
  25,245
  27,068
  28,974
  30,968
  33,055
  35,240
  37,528
  39,925
  42,439
  45,074
  47,837
  50,737
  53,780
  56,975
  60,328
  63,850
  67,548
  71,433
  75,515
Tax expense, $m
  1,969
  2,279
  2,602
  2,939
  3,290
  3,655
  4,036
  4,433
  4,847
  5,279
  6,345
  6,816
  7,308
  7,823
  8,361
  8,925
  9,515
  10,133
  10,780
  11,458
  12,170
  12,916
  13,699
  14,521
  15,383
  16,289
  17,239
  18,238
  19,287
  20,389
Net income, $m
  5,323
  6,162
  7,035
  7,946
  8,894
  9,882
  10,912
  11,985
  13,105
  14,273
  17,155
  18,429
  19,760
  21,151
  22,607
  24,130
  25,725
  27,395
  29,146
  30,980
  32,904
  34,921
  37,038
  39,260
  41,591
  44,040
  46,610
  49,310
  52,146
  55,126

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  64,273
  69,395
  74,720
  80,254
  86,004
  91,980
  98,192
  104,651
  111,371
  118,363
  125,643
  133,226
  141,129
  149,370
  157,966
  166,937
  176,305
  186,091
  196,317
  207,008
  218,189
  229,886
  242,128
  254,942
  268,360
  282,414
  297,137
  312,564
  328,732
  345,680
Adjusted assets (=assets-cash), $m
  64,273
  69,395
  74,720
  80,254
  86,004
  91,980
  98,192
  104,651
  111,371
  118,363
  125,643
  133,226
  141,129
  149,370
  157,966
  166,937
  176,305
  186,091
  196,317
  207,008
  218,189
  229,886
  242,128
  254,942
  268,360
  282,414
  297,137
  312,564
  328,732
  345,680
Revenue / Adjusted assets
  0.683
  0.683
  0.683
  0.683
  0.683
  0.683
  0.683
  0.683
  0.683
  0.683
  0.683
  0.683
  0.683
  0.683
  0.683
  0.683
  0.683
  0.683
  0.683
  0.683
  0.683
  0.683
  0.683
  0.683
  0.683
  0.683
  0.683
  0.683
  0.683
  0.683
Average production assets, $m
  18,569
  20,049
  21,587
  23,186
  24,847
  26,574
  28,369
  30,235
  32,176
  34,196
  36,299
  38,490
  40,774
  43,154
  45,638
  48,230
  50,936
  53,763
  56,718
  59,806
  63,037
  66,416
  69,953
  73,655
  77,532
  81,592
  85,846
  90,303
  94,974
  99,870
Working capital, $m
  1,756
  1,896
  2,041
  2,193
  2,350
  2,513
  2,683
  2,859
  3,043
  3,234
  3,433
  3,640
  3,856
  4,081
  4,316
  4,561
  4,817
  5,084
  5,363
  5,655
  5,961
  6,280
  6,615
  6,965
  7,332
  7,716
  8,118
  8,539
  8,981
  9,444
Total debt, $m
  21,340
  24,972
  28,748
  32,671
  36,748
  40,985
  45,389
  49,969
  54,733
  59,690
  64,852
  70,229
  75,832
  81,674
  87,769
  94,130
  100,771
  107,709
  114,960
  122,540
  130,467
  138,760
  147,439
  156,525
  166,038
  176,003
  186,441
  197,379
  208,842
  220,858
Total liabilities, $m
  45,569
  49,201
  52,977
  56,900
  60,977
  65,214
  69,618
  74,198
  78,962
  83,919
  89,081
  94,458
  100,061
  105,903
  111,998
  118,359
  125,000
  131,938
  139,189
  146,769
  154,696
  162,989
  171,668
  180,754
  190,267
  200,232
  210,670
  221,608
  233,071
  245,087
Total equity, $m
  18,703
  20,194
  21,744
  23,354
  25,027
  26,766
  28,574
  30,454
  32,409
  34,444
  36,562
  38,769
  41,069
  43,467
  45,968
  48,579
  51,305
  54,152
  57,128
  60,239
  63,493
  66,897
  70,459
  74,188
  78,093
  82,182
  86,467
  90,956
  95,661
  100,593
Total liabilities and equity, $m
  64,272
  69,395
  74,721
  80,254
  86,004
  91,980
  98,192
  104,652
  111,371
  118,363
  125,643
  133,227
  141,130
  149,370
  157,966
  166,938
  176,305
  186,090
  196,317
  207,008
  218,189
  229,886
  242,127
  254,942
  268,360
  282,414
  297,137
  312,564
  328,732
  345,680
Debt-to-equity ratio
  1.140
  1.240
  1.320
  1.400
  1.470
  1.530
  1.590
  1.640
  1.690
  1.730
  1.770
  1.810
  1.850
  1.880
  1.910
  1.940
  1.960
  1.990
  2.010
  2.030
  2.050
  2.070
  2.090
  2.110
  2.130
  2.140
  2.160
  2.170
  2.180
  2.200
Adjusted equity ratio
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  5,323
  6,162
  7,035
  7,946
  8,894
  9,882
  10,912
  11,985
  13,105
  14,273
  17,155
  18,429
  19,760
  21,151
  22,607
  24,130
  25,725
  27,395
  29,146
  30,980
  32,904
  34,921
  37,038
  39,260
  41,591
  44,040
  46,610
  49,310
  52,146
  55,126
Depreciation, amort., depletion, $m
  3,005
  3,064
  3,124
  3,187
  3,252
  3,319
  3,390
  3,463
  3,539
  3,618
  1,424
  1,509
  1,599
  1,692
  1,790
  1,891
  1,997
  2,108
  2,224
  2,345
  2,472
  2,605
  2,743
  2,888
  3,040
  3,200
  3,366
  3,541
  3,724
  3,916
Funds from operations, $m
  8,328
  9,226
  10,159
  11,132
  12,146
  13,201
  14,301
  15,448
  16,644
  17,891
  18,579
  19,938
  21,359
  22,844
  24,397
  26,022
  27,722
  29,504
  31,370
  33,325
  35,376
  37,526
  39,781
  42,148
  44,632
  47,239
  49,977
  52,852
  55,871
  59,042
Change in working capital, $m
  135
  140
  145
  151
  157
  163
  170
  176
  184
  191
  199
  207
  216
  225
  235
  245
  256
  267
  279
  292
  305
  320
  334
  350
  367
  384
  402
  421
  442
  463
Cash from operations, $m
  8,194
  9,086
  10,014
  10,981
  11,988
  13,038
  14,132
  15,272
  16,460
  17,700
  18,380
  19,731
  21,143
  22,619
  24,162
  25,776
  27,467
  29,236
  31,090
  33,033
  35,070
  37,206
  39,447
  41,798
  44,265
  46,855
  49,575
  52,430
  55,429
  58,579
Maintenance CAPEX, $m
  -672
  -728
  -786
  -847
  -909
  -974
  -1,042
  -1,112
  -1,186
  -1,262
  -1,341
  -1,424
  -1,509
  -1,599
  -1,692
  -1,790
  -1,891
  -1,997
  -2,108
  -2,224
  -2,345
  -2,472
  -2,605
  -2,743
  -2,888
  -3,040
  -3,200
  -3,366
  -3,541
  -3,724
New CAPEX, $m
  -1,431
  -1,480
  -1,538
  -1,599
  -1,661
  -1,727
  -1,795
  -1,866
  -1,941
  -2,020
  -2,103
  -2,191
  -2,283
  -2,381
  -2,483
  -2,592
  -2,706
  -2,827
  -2,954
  -3,089
  -3,230
  -3,379
  -3,537
  -3,702
  -3,877
  -4,060
  -4,254
  -4,457
  -4,671
  -4,896
Cash from investing activities, $m
  -2,103
  -2,208
  -2,324
  -2,446
  -2,570
  -2,701
  -2,837
  -2,978
  -3,127
  -3,282
  -3,444
  -3,615
  -3,792
  -3,980
  -4,175
  -4,382
  -4,597
  -4,824
  -5,062
  -5,313
  -5,575
  -5,851
  -6,142
  -6,445
  -6,765
  -7,100
  -7,454
  -7,823
  -8,212
  -8,620
Free cash flow, $m
  6,091
  6,877
  7,689
  8,536
  9,418
  10,337
  11,295
  12,293
  13,333
  14,418
  14,935
  16,117
  17,350
  18,639
  19,986
  21,395
  22,869
  24,412
  26,028
  27,720
  29,495
  31,355
  33,306
  35,352
  37,500
  39,755
  42,121
  44,607
  47,217
  49,958
Issuance/(repayment) of debt, $m
  3,458
  3,632
  3,775
  3,923
  4,077
  4,237
  4,404
  4,580
  4,764
  4,958
  5,162
  5,377
  5,603
  5,842
  6,095
  6,361
  6,642
  6,938
  7,250
  7,580
  7,927
  8,293
  8,679
  9,086
  9,513
  9,964
  10,439
  10,938
  11,463
  12,016
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  3,458
  3,632
  3,775
  3,923
  4,077
  4,237
  4,404
  4,580
  4,764
  4,958
  5,162
  5,377
  5,603
  5,842
  6,095
  6,361
  6,642
  6,938
  7,250
  7,580
  7,927
  8,293
  8,679
  9,086
  9,513
  9,964
  10,439
  10,938
  11,463
  12,016
Total cash flow (excl. dividends), $m
  9,549
  10,509
  11,465
  12,459
  13,495
  14,574
  15,699
  16,873
  18,097
  19,376
  20,097
  21,493
  22,953
  24,481
  26,081
  27,756
  29,510
  31,350
  33,278
  35,300
  37,422
  39,648
  41,985
  44,438
  47,014
  49,719
  52,560
  55,544
  58,680
  61,974
Retained Cash Flow (-), $m
  -1,427
  -1,491
  -1,549
  -1,610
  -1,673
  -1,739
  -1,808
  -1,880
  -1,955
  -2,035
  -2,119
  -2,207
  -2,300
  -2,398
  -2,501
  -2,611
  -2,726
  -2,848
  -2,976
  -3,111
  -3,254
  -3,404
  -3,562
  -3,729
  -3,905
  -4,090
  -4,284
  -4,489
  -4,705
  -4,932
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  8,122
  9,019
  9,915
  10,849
  11,821
  12,835
  13,891
  14,993
  16,142
  17,341
  17,978
  19,286
  20,654
  22,083
  23,579
  25,145
  26,784
  28,502
  30,302
  32,189
  34,168
  36,244
  38,423
  40,709
  43,109
  45,629
  48,275
  51,055
  53,975
  57,042
Discount rate, %
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
  7,787
  8,256
  8,629
  8,933
  9,163
  9,315
  9,385
  9,371
  9,273
  9,091
  8,538
  8,230
  7,853
  7,414
  6,922
  6,390
  5,828
  5,249
  4,666
  4,090
  3,534
  3,007
  2,518
  2,073
  1,677
  1,331
  1,036
  790
  589
  430
Current shareholders' claim on cash, %
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Honeywell International Inc. is a technology and manufacturing company. The Company operates through four segments: Aerospace, Home and Building Technologies, Performance Materials and Technologies, and Safety and Productivity Solutions. The Company's Aerospace segment supplies products, software and services for aircraft and vehicles that it sells to original equipment manufacturers (OEMs) and other customers. The Home and Building Technologies segment provides products, software, solutions and technologies that help owners of homes stay connected and in control of their comfort, security and energy use. The Performance Materials and Technologies segment is engaged in developing and manufacturing materials, process technologies and automation solutions. The Safety and Productivity Solutions segment is engaged in providing products, software and connected solutions to customers that manage productivity, workplace safety and asset performance.

FINANCIAL RATIOS  of  Honeywell International (HON)

Valuation Ratios
P/E Ratio 23.4
Price to Sales 2.9
Price to Book 5.8
Price to Tangible Book
Price to Cash Flow 20.4
Price to Free Cash Flow 25.5
Growth Rates
Sales Growth Rate 1.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 2.1%
Cap. Spend. - 3 Yr. Gr. Rate 2.9%
Financial Strength
Quick Ratio 3
Current Ratio 0
LT Debt to Equity 62.9%
Total Debt to Equity 81.4%
Interest Coverage 21
Management Effectiveness
Return On Assets 9.8%
Ret/ On Assets - 3 Yr. Avg. 10.1%
Return On Total Capital 14.7%
Ret/ On T. Cap. - 3 Yr. Avg. 15.9%
Return On Equity 25.5%
Return On Equity - 3 Yr. Avg. 25.4%
Asset Turnover 0.8
Profitability Ratios
Gross Margin 30.9%
Gross Margin - 3 Yr. Avg. 29.9%
EBITDA Margin 19.9%
EBITDA Margin - 3 Yr. Avg. 19.2%
Operating Margin 16.4%
Oper. Margin - 3 Yr. Avg. 16%
Pre-Tax Margin 16.4%
Pre-Tax Margin - 3 Yr. Avg. 16%
Net Profit Margin 12.2%
Net Profit Margin - 3 Yr. Avg. 11.7%
Effective Tax Rate 24.8%
Eff/ Tax Rate - 3 Yr. Avg. 25.6%
Payout Ratio 39.8%

HON stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the HON stock intrinsic value calculation we used $40534 million for the last fiscal year's total revenue generated by Honeywell International. The default revenue input number comes from 0001 income statement of Honeywell International. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our HON stock valuation model: a) initial revenue growth rate of 8.3% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for HON is calculated based on our internal credit rating of Honeywell International, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Honeywell International.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of HON stock the variable cost ratio is equal to 62%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $8428 million in the base year in the intrinsic value calculation for HON stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for Honeywell International.

Corporate tax rate of 27% is the nominal tax rate for Honeywell International. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the HON stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for HON are equal to 42.3%.

Life of production assets of 25.5 years is the average useful life of capital assets used in Honeywell International operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for HON is equal to 4%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $17276 million for Honeywell International - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 742.611 million for Honeywell International is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Honeywell International at the current share price and the inputted number of shares is $109.7 billion.

RELATED COMPANIES Price Int.Val. Rating
UTX United Technol 129.73 179.58  buy
ESL Esterline Tech 117.40 76.29  hold
LMT Lockheed Marti 305.48 112.63  str.sell
TGI Triumph Group 18.67 22.01  hold
EMR Emerson Electr 68.81 71.84  hold
ZBRA Zebra Technolo 178.91 67.80  str.sell

COMPANY NEWS

▶ Smart Home Firm Resideo Technologies Pops On Earnings Report   [04:26PM  Investor's Business Daily]
▶ Smart Home Firm Resideo Technologies Pops On Earnings Report   [11:33AM  Investor's Business Daily]
▶ Parsons reorganizes, head of federal business named COO   [02:09PM  American City Business Journals]
▶ Industrial ETFs in Focus Post Q3 Earnings   [Nov-01-18 08:50PM  Zacks]
▶ [$$] Cyber Daily: Small USB Devices Contain Big Threats   [08:19AM  The Wall Street Journal]
▶ Some companies have all the luck. These are not those companies.   [03:37PM  American City Business Journals]
▶ Arizona defense contractors secure $362M in combined Army contracts   [12:00AM  American City Business Journals]
▶ Honeywell spinoff picks Austin for its HQ   [Oct-29-18 05:12PM  American City Business Journals]
▶ Honeywell Rises 3%   [01:06PM  Investing.com]
▶ Real Estate Notebook: Honeywell expands; WeWork to Interlock   [08:00AM  American City Business Journals]
▶ Honeywell wins $1 billion U.S. Air Force contract   [Oct-25-18 05:38PM  American City Business Journals]
▶ Honeywell Falls 3%   [Oct-24-18 06:56PM  Investing.com]

CONTACT US       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2018. All rigths reserved.