Latest Ratios: P/E Ratio 15.7x · EV/EBITDA 12.0x · ROE 27.3%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $73.2B | $125.4B | $148.0B | $140.1B | $146.4B | $146.0B | $151.3B | $129.3B | $99.5B | $113.4B | $86.0B |
| Enterprise Value | $95.3B | $147.5B | $169.7B | $153.7B | $157.3B | $155.7B | $160.2B | $136.9B | $106.4B | $124.2B | $93.9B |
| P/E Ratio → | 15.71 | 26.51 | 25.93 | 24.76 | 29.48 | 26.36 | 31.65 | 21.05 | 14.71 | 73.42 | 17.86 |
| P/S Ratio | 1.96 | 3.35 | 4.26 | 4.25 | 4.13 | 4.25 | 4.63 | 3.52 | 2.38 | 2.80 | 2.19 |
| P/B Ratio | 4.81 | 8.12 | 7.73 | 8.52 | 8.45 | 7.59 | 8.50 | 6.91 | 5.42 | 6.80 | 4.40 |
| P/FCF | 13.58 | 23.25 | 28.32 | 30.47 | 32.47 | 28.40 | 28.53 | 21.34 | 17.75 | 22.97 | 19.53 |
| P/OCF | 11.48 | 19.66 | 24.28 | 26.24 | 27.76 | 24.19 | 24.37 | 18.74 | 15.46 | 19.00 | 15.64 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.94 | 4.89 | 4.66 | 4.44 | 4.53 | 4.91 | 3.73 | 2.55 | 3.06 | 2.39 |
| EV / EBITDA | 11.98 | 18.54 | 21.70 | 21.61 | 20.61 | 20.98 | 23.92 | 17.24 | 13.61 | 16.74 | 13.26 |
| EV / EBIT | 14.52 | 21.63 | 23.27 | 22.15 | 23.16 | 20.55 | 25.15 | 17.29 | 13.55 | 17.09 | 13.83 |
| EV / FCF | — | 27.35 | 32.47 | 33.43 | 34.89 | 30.28 | 30.22 | 22.60 | 18.98 | 25.17 | 21.33 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 36.9% | 36.9% | 38.5% | 37.5% | 37.0% | 35.9% | 32.1% | 33.7% | 30.5% | 30.6% | 29.6% |
| Operating Margin | 17.5% | 17.5% | 19.2% | 18.5% | 18.1% | 18.0% | 17.5% | 18.7% | 16.0% | 15.5% | 15.4% |
| Net Profit Margin | 12.6% | 12.6% | 16.4% | 17.1% | 14.0% | 16.1% | 14.6% | 16.7% | 16.2% | 3.8% | 12.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 27.3% | 27.3% | 32.0% | 33.5% | 27.2% | 29.9% | 26.2% | 33.1% | 38.6% | 8.5% | 25.2% |
| ROA | 6.3% | 6.3% | 8.3% | 9.1% | 7.8% | 8.6% | 7.8% | 10.6% | 11.5% | 2.7% | 9.3% |
| ROIC | 12.6% | 12.6% | 14.1% | 15.7% | 16.9% | 16.7% | 16.1% | 19.9% | 19.1% | 17.2% | 17.2% |
| ROCE | 12.6% | 12.6% | 13.8% | 14.3% | 14.7% | 13.7% | 13.3% | 17.3% | 16.9% | 16.1% | 17.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 2.24 | 2.24 | 1.68 | 1.31 | 1.19 | 1.07 | 1.30 | 0.89 | 0.88 | 1.07 | 0.81 |
| Debt / EBITDA | 4.35 | 4.35 | 4.12 | 3.03 | 2.69 | 2.78 | 3.47 | 2.10 | 2.07 | 2.41 | 2.23 |
| Net Debt / Equity | — | 1.43 | 1.13 | 0.83 | 0.63 | 0.50 | 0.50 | 0.41 | 0.38 | 0.65 | 0.41 |
| Net Debt / EBITDA | 2.78 | 2.78 | 2.77 | 1.91 | 1.43 | 1.30 | 1.33 | 0.96 | 0.89 | 1.46 | 1.12 |
| Debt / FCF | — | 4.10 | 4.14 | 2.96 | 2.42 | 1.88 | 1.69 | 1.26 | 1.24 | 2.19 | 1.80 |
| Interest Coverage | 5.07 | 5.07 | 6.96 | 9.27 | 16.41 | 22.09 | 17.75 | 22.17 | 21.40 | 22.99 | 20.09 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.32 | 1.32 | 1.31 | 1.27 | 1.25 | 1.30 | 1.47 | 1.34 | 1.29 | 1.38 | 1.41 |
| Quick Ratio | 1.05 | 1.05 | 1.01 | 0.93 | 0.98 | 1.04 | 1.23 | 1.10 | 1.06 | 1.13 | 1.14 |
| Cash Ratio | 0.55 | 0.55 | 0.52 | 0.44 | 0.51 | 0.59 | 0.79 | 0.58 | 0.58 | 0.57 | 0.57 |
| Asset Turnover | — | 0.51 | 0.46 | 0.54 | 0.57 | 0.53 | 0.51 | 0.63 | 0.72 | 0.68 | 0.73 |
| Inventory Turnover | 3.83 | 3.83 | 3.32 | 3.34 | 4.04 | 4.29 | 4.94 | 5.51 | 6.71 | 6.10 | 6.34 |
| Days Sales Outstanding | — | 74.29 | 82.21 | 83.26 | 76.57 | 72.49 | 76.35 | 74.50 | 65.56 | 79.84 | 75.94 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 4.0% | 2.4% | 2.0% | 2.0% | 1.9% | 1.8% | 1.7% | 1.9% | 2.3% | 1.9% | 2.2% |
| Payout Ratio | 62.9% | 62.9% | 50.9% | 50.5% | 54.8% | 47.4% | 54.2% | 39.8% | 33.6% | 137.2% | 39.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.4% | 3.8% | 3.9% | 4.0% | 3.4% | 3.8% | 3.2% | 4.8% | 6.8% | 1.4% | 5.6% |
| FCF Yield | 7.4% | 4.3% | 3.5% | 3.3% | 3.1% | 3.5% | 3.5% | 4.7% | 5.6% | 4.4% | 5.1% |
| Buyback Yield | 5.2% | 3.0% | 1.1% | 2.7% | 2.9% | 2.3% | 2.5% | 3.4% | 4.0% | 2.5% | 2.4% |
| Total Shareholder Yield | 9.2% | 5.4% | 3.1% | 4.7% | 4.7% | 4.1% | 4.2% | 5.3% | 6.3% | 4.4% | 4.6% |
| Shares Outstanding | — | $321M | $328M | $334M | $342M | $350M | $356M | $365M | $377M | $386M | $388M |
Cyclical revenue and leverage
According to current market data, Honeywell trades at a forward P/E of 22.09, which appears elevated relative to its recent earnings contraction and suggests that investors are pricing in a recovery that may not materialize as quickly as historical performance trends would otherwise imply.
The current P/E multiple of 31.55 on a trailing basis reflects a significant disconnect between market expectations and the recent compression in operating margins. This valuation premium warrants caution, as it assumes a return to historical profitability levels that are currently challenged by cyclical headwinds and rising debt service requirements.
Based on reported financial figures, Honeywell's ROIC has trended downward from 4.6% in 2024Q1 to a mere 1.7% in 2026Q1, indicating a material erosion in the company's ability to generate value from its invested capital base during the current industrial downturn.
The sharp decline in ROIC suggests that the company's capital-intensive projects are failing to meet hurdle rates, likely exacerbated by the recent accumulation of debt and stagnant asset turnover. Investors should monitor whether this decay is a structural shift or a temporary consequence of the current restructuring cycle.
As reported in recent quarterly filings, the cash conversion cycle has expanded to 79 days in 2026Q1 from 67 days in 2023Q4, reflecting a notable deterioration in inventory management and receivables collection efficiency that is currently hindering the firm's overall liquidity position.
The increase in days inventory outstanding to 101 days suggests that the company is struggling to align production with softening demand, leading to a buildup of capital in non-productive assets. This inefficiency is a primary driver of the recent negative free cash flow and warrants close scrutiny of future inventory turnover metrics.
Based on the latest financial statements, Honeywell's debt-to-equity ratio has risen to 1.58, a significant increase from the 1.31 observed in 2023Q4, which indicates that the company is increasingly reliant on external financing to navigate current operational volatility and maintain its dividend commitments.
The rising debt burden, coupled with a declining interest coverage ratio of 2.49, suggests that the company's balance sheet is becoming less resilient to interest rate fluctuations. This trend may limit management's ability to pursue strategic acquisitions or capital investments without further straining the firm's credit profile.
The P/E ratio is frequently misapplied to Honeywell because it fails to account for the significant non-cash charges and restructuring costs that frequently distort net income, thereby obscuring the true cash-generating capacity of the underlying industrial and aerospace segments.
Analysts should prioritize EV/EBITDA or P/FCF over P/E to better capture the operational reality of a conglomerate with heavy depreciation and frequent restructuring activity. Relying on P/E risks misinterpreting the company's valuation by ignoring the impact of legacy liabilities and the cyclical nature of its capital expenditures.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying HON stock.
Honeywell International Inc.'s current P/E ratio is 15.7x. The historical average is 22.5x. This places it at the 7th percentile of its historical range.
Honeywell International Inc.'s current EV/EBITDA is 12.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.9x.
Honeywell International Inc.'s return on equity (ROE) is 27.3%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 22.9%.
Based on historical data, Honeywell International Inc. is trading at a P/E of 15.7x. This is at the 7th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Honeywell International Inc.'s current dividend yield is 4.01% with a payout ratio of 62.9%.
Honeywell International Inc. has 36.9% gross margin and 17.5% operating margin. Operating margin between 10-20% is typical for established companies.
Honeywell International Inc.'s Debt/EBITDA ratio is 4.3x, indicating high leverage. A ratio above 4x may signal elevated financial risk.