Discounted Cash Flow (DCF) Analysis Levered

Honeywell International Inc. (HON)

$203.245

+0.55 (+0.27%)
All numbers are in Millions, Currency in USD
Stock DCF: 328.06 | 203.245 | undervalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 41,80236,70932,63734,39261,42670,748.4081,485.6393,852.41108,096.05124,501.39
Revenue (%)
Operating Cash Flow 6,4346,8976,2086,0385,27411,226.8712,930.7314,893.1817,153.4619,756.78
Operating Cash Flow (%)
Capital Expenditure -828-839-906-895-766-1,541.14-1,775.03-2,044.42-2,354.70-2,712.06
Capital Expenditure (%)
Free Cash Flow 5,6066,0585,3025,1434,5089,685.7311,155.7012,848.7614,798.7717,044.72

Weighted Average Cost Of Capital

Share price $ 203.245
Beta 1.135
Diluted Shares Outstanding 683.10
Cost of Debt
Tax Rate 22.15
After-tax Cost of Debt 3.89%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.974
Total Debt 19,570
Total Equity 138,836.66
Total Capital 158,406.66
Debt Weighting 12.35
Equity Weighting 87.65
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 41,80236,70932,63734,39261,42670,748.4081,485.6393,852.41108,096.05124,501.39
Operating Cash Flow 6,4346,8976,2086,0385,27411,226.8712,930.7314,893.1817,153.4619,756.78
Capital Expenditure -828-839-906-895-766-1,541.14-1,775.03-2,044.42-2,354.70-2,712.06
Free Cash Flow 5,6066,0585,3025,1434,5089,685.7311,155.7012,848.7614,798.7717,044.72
WACC
PV LFCF 5,986.316,363.486,764.417,190.607,643.65
SUM PV LFCF 50,694.92

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.35
Free cash flow (t + 1) 17,385.62
Terminal Value 273,789.26
Present Value of Terminal Value 183,346.16

Intrinsic Value

Enterprise Value 234,041.08
Net Debt 9,943
Equity Value 224,098.08
Shares Outstanding 683.10
Equity Value Per Share 328.06