Honeywell International stock: fair value
HONThe fair value of Honeywell International under our model is $356.84, the price is 37% below.
The fair value is an estimate from our model, not a price target.
Daily figure as of 13 Nov 2026
Valuation signal
Significantly undervaluedIn our model the price counts as cheap below $274.49 and expensive above $509.77 (uncertainty medium, based on the price swings of the past year).
Calculated with a cost of equity of 8.8%. At 9.8% the fair value would be $297.42, at 7.8% it would be $445.97.
Where the number comes from
From the cash-flow model alone; the profit includes one-off items, so there is no industry value.
Ten-year cash-flow model from smoothed free cash flow and its past growth until it reaches 3.8%. Discounted at 8.8% (floor: government bond yield 3.8% plus 5 percentage points, since beta 1.1 times the risk premium would give less); no analyst estimates were available.
Calculate with your own assumptionsThe calculation step by step
With these figures the cash flow model arrives at $356.84 per share: free cash flow for the next ten years, each year discounted to today at 8.8%, plus the terminal value for the years after. The table explains the calculation; it is not a recommendation.
Calculation as a table
| Year | Free cash flow | Source | Discount factor | Present value (discounted at 8.8%) |
|---|---|---|---|---|
| 2026 | $5.73B | extrapolated at 3.5% | 0.9189 | $5.27B |
| 2027 | $5.94B | extrapolated at 3.6% | 0.8443 | $5.01B |
| 2028 | $6.16B | extrapolated at 3.7% | 0.7758 | $4.78B |
| 2029 | $6.38B | extrapolated at 3.7% | 0.7129 | $4.55B |
| 2030 | $6.62B | extrapolated at 3.7% | 0.6550 | $4.34B |
| 2031 | $6.87B | extrapolated at 3.8% | 0.6019 | $4.14B |
| 2032 | $7.13B | extrapolated at 3.8% | 0.5530 | $3.95B |
| 2033 | $7.4B | extrapolated at 3.8% | 0.5082 | $3.76B |
| 2034 | $7.69B | extrapolated at 3.8% | 0.4669 | $3.59B |
| 2035 | $7.98B | extrapolated at 3.8% | 0.4291 | $3.42B |
| Step | Value |
|---|---|
| Sum of present values (ten years) | $42.81B |
| Terminal value: cash flow 2035 × (1 + 3.8%) / (8.8% − 3.8%) | $165.71B |
| Present value of terminal value (× 0.4291) | $71.1B |
| Equity value (sum plus present value of terminal value) | $113.9B |
| Shares (diluted) | 319.20M |
| Value per share (equity value divided by shares) | $356.84 |
| Fair value (from the cash flow model alone) | $356.84 |
The model uses free cash flow after interest, which belongs to shareholders, discounted at the cost of equity. Net debt is therefore not deducted again.
Data status and sources
- Score
- Daily value of 13 Nov 2026, recalculated nightly
- Price
- Closing price of 12 Nov 2026
- Latest annual report
- Fiscal year 2025, period end 31 Dec 2025
- Source
- Financial statements, ratios and prices from Financial Modeling Prep (FMP), based on the company's reports. MEQIRI calculates the score and fair value from them.
Mandatory disclosures for this rating
- ; time horizon around 12 months
- Rated Neutral, published since 7 Nov 2026 (in the score history since 20 Feb 2026)
- Valuation signal Undervalued since 7 Nov 2026
- End-of-day prices, metrics cached for up to 24 hours
- Score and fair value are estimates from a disclosed model. They are not facts and not a price target.
- Produced by SSM Ventures UG (haftungsbeschränkt), responsible person Sven Brostmeyer, Managing Director, automatically according to the disclosed model.
- Not investment advice. Losses up to and including a total loss are possible. Personal circumstances are not considered.