Using the industry peer median P/E multiple (trailing + forward), Honeywell International Inc. (HON) has a fair value of $221.66 based on 10 comparable companies in the Conglomerates industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Honeywell International Inc.HON | 145,578 | 28.3x | 22.5x |
| Deere & CompanyDE | 157,162 | 31.5x | 23.3x |
| Lockheed Martin CorporationLMT | 145,078 | 29.2x | 20.9x |
| Union Pacific CorporationUNP | 141,613 | 19.9x | 19.1x |
| Eaton Corporation plcETN | 139,696 | 34.4x | 26.9x |
| Parker-Hannifin CorporationPH | 114,446 | 33.4x | 33.9x |
| Northrop Grumman CorporationNOC | 98,495 | 23.9x | 24.8x |
| General Dynamics CorporationGD | 96,280 | 23.0x | 21.8x |
| Trane Technologies plcTT | 90,804 | 31.5x | 36.7x |
| Automatic Data Processing, Inc.ADP | 82,824 | 20.5x | 22.4x |
| 3M CompanyMMM | 76,424 | 24.2x | 16.7x |
| Industry Median | 26.7x | 22.8x | |
| (*) Profit after tax | 5,139 | 6,471 | |
| Equity Value | 137,104 | 147,858 | |
| (/) Outstanding shares | 643 | 643 | |
| Fair Price | $213 | $230 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.