Is Honeywell International Inc (HON) overvalued?
On Equity Rank's model estimate, HON trades 13% below its fair value. Honeywell International Inc (HON) last closed at $220.05; the multi-method model fair value is $252.67.
| Price | Model fair value | Price vs model |
|---|---|---|
| $220.05 | $252.67 | 13% below |
What the answer rests on
- 4 of 11 valuation methods put HON's value above its price and 7 put it below, so the methods disagree.
- To justify today's price, HON's free cash flow would need to grow about -0.4% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 6.3% a year.
- Over the past year the price sat below the model fair value on 91% of trading days. The gap ranged from 36% below to 65% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind HON's fair value · What prices assume · Other companies