Discounted Cash Flow

Honeywell International Inc.

HON · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $39.3b $4.8b $4.4b 12.2% $6.29
2017 $40.5b (3.1%) $1.7b (-65.6%) $4.9b (12.1%) 4.1% (-66.6%) $2.17 (-65.5%)
2018 $41.8b (3.1%) $6.8b (308.8%) $5.6b (13.6%) 16.2% (296.4%) $9.10 (319.4%)
2019 $36.7b (-12.2%) $6.1b (-9.2%) $6.1b (8.1%) 16.7% (3.4%) $8.52 (-6.4%)
2020 $32.6b (-11.1%) $4.8b (-22.2%) $5.3b (-12.3%) 14.6% (-12.5%) $6.79 (-20.3%)
2021 $34.4b (5.4%) $5.5b (16.0%) $3.7b (-31.0%) 16.1% (10.0%) $8.01 (18.0%)
2022 $35.5b (3.1%) $5.0b (-10.4%) $4.5b (23.0%) 14.0% (-13.1%) $7.33 (-8.5%)
2023 $36.7b (3.4%) $5.7b (13.9%) $3.7b (-17.5%) 15.4% (10.2%) $8.53 (16.4%)
2024 $38.5b (5.0%) $5.7b (0.8%) $4.2b (14.1%) 14.8% (-4.0%) $8.76 (2.7%)
2025 $37.4b (-2.7%) $4.7b (-17.1%) $5.1b (20.0%) 12.6% (-14.8%) $7.40 (-15.5%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model