Stock Analysis on Net

Honeywell International Inc. (NASDAQ:HON)

Enterprise Value to FCFF (EV/FCFF)

Microsoft Excel

Free Cash Flow to The Firm (FCFF)

Honeywell International Inc., FCFF calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income attributable to Honeywell 5,658 4,966 5,542 4,779 6,143
Net income attributable to the noncontrolling interest 14 1 68 86 87
Net noncash charges (693) 1,052 140 (20) 623
Changes in assets and liabilities, net of the effects of acquisitions and divestitures 361 (745) 288 1,363 44
Net cash provided by operating activities 5,340 5,274 6,038 6,208 6,897
Interest paid, net of amounts capitalized, net of tax1 514 292 263 266 271
Capital expenditures (1,039) (766) (895) (906) (839)
Proceeds from disposals of property, plant and equipment 43 29 27 57 43
Free cash flow to the firm (FCFF) 4,858 4,829 5,433 5,625 6,372

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Honeywell International Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Honeywell International Inc. FCFF decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Interest Paid, Net of Tax

Honeywell International Inc., interest paid, net of tax calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Effective Income Tax Rate (EITR)
EITR1 20.80% 22.10% 22.50% 19.10% 21.20%
Interest Paid, Net of Tax
Interest paid, net of amounts capitalized, before tax 649 375 339 329 344
Less: Interest paid, net of amounts capitalized, tax2 135 83 76 63 73
Interest paid, net of amounts capitalized, net of tax 514 292 263 266 271

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 See details »

2 2023 Calculation
Interest paid, net of amounts capitalized, tax = Interest paid, net of amounts capitalized × EITR
= 649 × 20.80% = 135


Enterprise Value to FCFF Ratio, Current

Honeywell International Inc., current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 161,312
Free cash flow to the firm (FCFF) 4,858
Valuation Ratio
EV/FCFF 33.21
Benchmarks
EV/FCFF, Competitors1
Boeing Co. 19.61
Caterpillar Inc. 18.08
Eaton Corp. plc 47.40
GE Aerospace 38.26
Lockheed Martin Corp. 20.52
RTX Corp. 29.18
EV/FCFF, Sector
Capital Goods 26.29
EV/FCFF, Industry
Industrials 27.14

Based on: 10-K (reporting date: 2023-12-31).

1 Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.


Enterprise Value to FCFF Ratio, Historical

Honeywell International Inc., historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 141,517 144,024 136,990 148,988 134,643
Free cash flow to the firm (FCFF)2 4,858 4,829 5,433 5,625 6,372
Valuation Ratio
EV/FCFF3 29.13 29.82 25.22 26.49 21.13
Benchmarks
EV/FCFF, Competitors4
Boeing Co. 25.63 37.53
Caterpillar Inc. 16.08 23.54 20.50 23.83 16.84
Eaton Corp. plc 38.49 33.44 38.16 21.94 15.50
GE Aerospace 29.56 17.29 56.53 32.34 15.85
Lockheed Martin Corp. 17.62 19.69 13.92 14.64 21.21
RTX Corp. 23.86 28.45 27.29 35.26 21.94
EV/FCFF, Sector
Capital Goods 23.34 25.87 32.16 74.97 24.73
EV/FCFF, Industry
Industrials 25.67 24.88 28.41 72.49 31.28

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 See details »

2 See details »

3 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 141,517 ÷ 4,858 = 29.13

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Honeywell International Inc. EV/FCFF ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.