Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)50% (Hyper Growth)
EST. PRICE IN 2031
$354.46
Based on 12.2% avg growth
INTRINSIC VALUE TODAY
$220.09
Trading above historical range
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 20.1x Exit PE.
Valuation Analysis: HON is currently trading at $246.77, which is considered extended relative to its 30-day fair value range of $222.85 to $240.54. From a valuation perspective, the stock is trading at a premium (Forward PE: 24.3) compared to its historical average (20.1). At these levels, the market is pricing in 6.5% annual earnings growth. This growth rate appears achievable given the company's track record, suggesting the valuation is rational.
Technical Outlook: Technically, HON is in a downtrend. The price is approaching resistance at $252.00. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: HON has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Quick Decision Summary
Current Position
EXTENDED
Historical Trading Range
$222.85 -
$240.54
Company Quality Score
53/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
57.1%
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Honeywell traces its roots to 1885 with Albert Butz's firm, Butz Thermo-Electric Regulator, which produced a predecessor to the modern thermostat. Other inventions by Honeywell include biodegradable detergent and autopilot. Today, Honeywell is a global multi-industry behemoth with one of the largest installed bases of equipment. It operates through four business segments: aerospace technologies (37% of 2023 company revenue), industrial automation (29%), energy and sustainability solutions (17%), and building automation (17%). Recently, Honeywell has made several portfolio changes to focus on fewer end markets and align with a set of secular growth trends. The firm is working diligently to expand its installed base, deriving around 30% of its revenue from recurring aftermarket services.