Is Honeywell International, Inc. overvalued or undervalued?

As of 25 April 2024, the valuation grade for Honeywell International, Inc. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued at this time, 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 of 37.08, while Lockheed Martin Corp. shows a more favorable EV to EBITDA of 16.98, suggesting that Honeywell's valuation is in line with the industry but not particularly compelling.
In terms of recent performance, Honeywell's stock has underperformed against the S&P 500 across multiple periods, with a year-to-date return of -6.95% compared to the S&P 500's 12.22%. This trend reinforces the notion that Honeywell is currently fairly valued given its recent stock performance relative to broader market benchmarks.