Is Honeywell International, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Honeywell International, Inc. has moved from expensive to fair. The company appears fairly valued based on its current metrics, with a P/E ratio of 34, a Price to Book Value of 11.95, and an EV to EBITDA of 24.67. In comparison to peers, RTX Corp. has a higher P/E of 37.08, while Lockheed Martin Corp. shows a lower EV to EBITDA of 16.98, indicating that Honeywell is positioned reasonably within its industry.
Despite the fair valuation, Honeywell's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -10.15% compared to the index's 13.30%. Over the longer term, however, Honeywell has delivered a 3-year return of 14.64%, which is significantly lower than the S&P 500's 81.19% return over the same period. This suggests that while the company is fairly valued, its stock performance has not kept pace with broader market trends.