Discounted Cash Flow (DCF) Analysis Levered

Honeywell International Inc. (HON)

$198.67

-0.06 (-0.03%)
All numbers are in Millions, Currency in USD
Stock DCF: 127.35 | 198.67 | overvalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 36,70932,63734,39235,46636,64736,714.5636,782.2536,850.0636,91836,986.07
Revenue (%)
Operating Cash Flow 6,8976,2086,0385,2745,3406,227.396,238.876,250.376,261.896,273.44
Operating Cash Flow (%)
Capital Expenditure -839-906-895-766-1,039-929.53-931.24-932.96-934.68-936.40
Capital Expenditure (%)
Free Cash Flow 6,0585,3025,1434,5084,3015,297.865,307.625,317.415,327.215,337.03

Weighted Average Cost Of Capital

Share price $ 198.67
Beta 1.044
Diluted Shares Outstanding 668.20
Cost of Debt
Tax Rate 20.97
After-tax Cost of Debt 3.29%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.087
Total Debt 21,536
Total Equity 132,751.29
Total Capital 154,287.29
Debt Weighting 13.96
Equity Weighting 86.04
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 36,70932,63734,39235,46636,64736,714.5636,782.2536,850.0636,91836,986.07
Operating Cash Flow 6,8976,2086,0385,2745,3406,227.396,238.876,250.376,261.896,273.44
Capital Expenditure -839-906-895-766-1,039-929.53-931.24-932.96-934.68-936.40
Free Cash Flow 6,0585,3025,1434,5084,3015,297.865,307.625,317.415,327.215,337.03
WACC
PV LFCF 6,211.505,747.095,317.414,919.854,552.01
SUM PV LFCF 21,069.02

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.28
Free cash flow (t + 1) 5,523.83
Terminal Value 115,561.29
Present Value of Terminal Value 77,637.43

Intrinsic Value

Enterprise Value 98,706.46
Net Debt 13,611
Equity Value 85,095.46
Shares Outstanding 668.20
Equity Value Per Share 127.35