Is Honeywell International, Inc. overvalued or undervalued?

As of 6 February 2025, Honeywell International, Inc. has moved from an attractive to a fair valuation grade. The company is currently fairly valued, with a P/E ratio of 34, a price-to-book value of 11.95, and an EV to EBITDA ratio of 24.67. In comparison to its peers, RTX Corp. has a higher P/E ratio of 46.92, indicating it is expensive, while Lockheed Martin Corp. shows a more favorable P/E of 20.24, suggesting it is fairly valued as well.
Honeywell's return on equity (ROE) stands at an impressive 35.35%, and its return on capital employed (ROCE) is 19.74%, reflecting strong operational efficiency. Despite a recent stock performance that lags behind the S&P 500 over the past year, where Honeywell returned 4.49% compared to the S&P 500's 10.26%, the company's valuation metrics suggest it is appropriately priced in the current market environment.