Honeywell provides aerospace products and services, control, sensing and security technologies, turbochargers, automotive products, specialty chemicals, electronic and advanced materials, process technology for refining and petrochemicals, and energy efficient products and solutions. The company was founded in 1920 and is based in Morris Township, New Jersey.
HON Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Honeywell International Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Honeywell International Inc ranked in the 40th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for HON, they are:
As a business, HON is generating more cash flow than 97.56% of positive cash flow stocks in the Industrials.
Honeywell International Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than just 24.93% of tickers in our DCF set.
HON's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than just 24.93% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Honeywell International Inc? See FAST, MSA, WCC, CAT, and ITW.
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Stephen Simpson, CFA on Seeking Alpha | July 30, 2020
NEW YORK, July 30, 2020 /PRNewswire/ -- Rosen Law Firm, a global investor rights law firm, reminds purchasers of the securities of Honeywell International Inc. between February 9, 2018 and October 19, 2018, inclusive (the "Class Period"), of the important September 4, 2020 co-lead…
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