DCF Tool

HON

Honeywell International Inc – Aircraft Engine and Engine Parts Manufacturing
Honeywell is a Fortune 100 technology company that delivers industry-specific solutions that include aerospace products and services; control technologies for buildings and industry; and performance materials globally. Its technologies help aircraft, buildings, manufacturing plants, supply chains, and workers become more connected to make our world smarter, safer, and more sustainable.
Analysis Results
Intrinsic Value $243.70
Latest Price $166.97
Relative Value 31% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 4.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 4.9%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 6.38 6.01
2023 6.69 5.94
2024 7.01 5.87
2025 7.36 5.81
2026 7.71 5.74
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 192 billion. This corresponds to a present value of 135 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 29.4 billion. Adding in the terminal value gives a total present value of 164 billion.

There are presently 674.0 million outstanding shares, so the intrinsic value per share is 243.7.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 50,744,000,000
Current Cash 23,046,000,000
Current Liabilities 39,016,000,000
Current Debt 10,690,000,000
Non-Cash Working Capital (NCWC) -628,000,000
Change in NCWC -428,000,000
EBIT 12,534,000,000
Tax Provision 3,250,000,000
Depreciation and Amortization 2,446,000,000
Capital Expenditure -1,790,000,000
Unlevered Free Cash Flow 9,946,830,684
Current Assets 28,175,000,000
Current Cash 15,220,000,000
Current Liabilities 19,197,000,000
Current Debt 6,042,000,000
Non-Cash Working Capital (NCWC) -200,000,000
Change in NCWC -881,000,000
EBIT 5,762,000,000
Tax Provision 1,147,000,000
Depreciation and Amortization 1,002,000,000
Capital Expenditure -906,000,000
Unlevered Free Cash Flow 3,877,696,274
Current Assets 24,303,000,000
Current Cash 10,416,000,000
Current Liabilities 18,098,000,000
Current Debt 4,892,000,000
Non-Cash Working Capital (NCWC) 681,000,000
Change in NCWC -305,000,000
EBIT 6,903,000,000
Tax Provision 1,329,000,000
Depreciation and Amortization 1,088,000,000
Capital Expenditure -839,000,000
Unlevered Free Cash Flow 5,633,335,890
Current Assets 24,362,000,000
Current Cash 10,910,000,000
Current Liabilities 18,924,000,000
Current Debt 6,458,000,000
Non-Cash Working Capital (NCWC) 986,000,000
Change in NCWC -647,000,000
EBIT 6,755,000,000
Tax Provision 659,000,000
Depreciation and Amortization 1,116,000,000
Capital Expenditure -828,000,000
Unlevered Free Cash Flow 5,801,430,078
Current Assets 26,002,000,000
Current Cash 10,817,000,000
Current Liabilities 18,861,000,000
Current Debt 5,309,000,000
Non-Cash Working Capital (NCWC) 1,633,000,000
Change in NCWC -844,000,000
EBIT 7,190,000,000
Tax Provision 5,204,000,000
Depreciation and Amortization 1,115,000,000
Capital Expenditure -1,031,000,000
Unlevered Free Cash Flow 1,008,852,506
Current Assets 23,058,000,000
Current Cash 7,843,000,000
Current Liabilities 16,331,000,000
Current Debt 3,593,000,000
Non-Cash Working Capital (NCWC) 2,477,000,000
Change in NCWC -264,000,000
EBIT 6,714,000,000
Tax Provision 1,601,000,000
Depreciation and Amortization 1,030,000,000
Capital Expenditure -1,095,000,000
Unlevered Free Cash Flow 4,717,695,207
Current Assets 20,053,000,000
Current Cash 5,455,000,000
Current Liabilities 18,371,000,000
Current Debt 6,514,000,000
Non-Cash Working Capital (NCWC) 2,741,000,000
Change in NCWC -355,000,000
EBIT 6,858,000,000
Tax Provision 1,739,000,000
Depreciation and Amortization 883,000,000
Capital Expenditure -1,073,000,000
Unlevered Free Cash Flow 4,502,179,775
Current Assets 22,191,000,000
Current Cash 6,959,000,000
Current Liabilities 14,773,000,000
Current Debt 2,637,000,000
Non-Cash Working Capital (NCWC) 3,096,000,000
Change in NCWC 507,000,000
EBIT 5,867,000,000
Tax Provision 1,489,000,000
Depreciation and Amortization 924,000,000
Capital Expenditure -1,094,000,000
Unlevered Free Cash Flow 4,702,459,436
Current Assets 21,164,000,000
Current Cash 6,422,000,000
Current Liabilities 14,181,000,000
Current Debt 2,028,000,000
Non-Cash Working Capital (NCWC) 2,589,000,000
Change in NCWC 1,569,000,000
EBIT 5,501,000,000
Tax Provision 1,450,000,000
Depreciation and Amortization 989,000,000
Capital Expenditure -947,000,000
Unlevered Free Cash Flow 5,638,154,841
Current Assets 17,598,000,000
Current Cash 4,634,000,000
Current Liabilities 13,045,000,000
Current Debt 1,101,000,000
Non-Cash Working Capital (NCWC) 1,020,000,000
Change in NCWC 185,000,000
EBIT 4,156,000,000
Tax Provision 944,000,000
Depreciation and Amortization 926,000,000
Capital Expenditure -884,000,000
Unlevered Free Cash Flow 3,370,544,774

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