Enterprise Value to EBITDA (EV/EBITDA)
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Honeywell International Inc. pages available for free this week:
- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Long-term (Investment) Activity Ratios
- Selected Financial Data since 2005
- Return on Equity (ROE) since 2005
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Analysis of Revenues
- Analysis of Debt
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Honeywell International Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Honeywell’s earnings metrics demonstrate a generally positive trajectory from 2021 to 2024, followed by a decline in 2025. Net income attributable to Honeywell, Earnings Before Tax (EBT), Earnings Before Interest and Tax (EBIT), and Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) all exhibited growth during the initial period, suggesting improving operational performance. However, 2025 witnessed a decrease across all these metrics, indicating a potential shift in the company’s profitability.
- EBITDA Trend
- EBITDA increased from US$8,801 million in 2021 to US$9,605 million in 2024, representing a cumulative growth of approximately 9.1%. This indicates a strengthening of core operational profitability over this period. However, EBITDA decreased to US$8,208 million in 2025, a decline of approximately 14.6% from its peak in 2024. This reversal warrants further investigation to determine the underlying causes.
- Relationship between EBT, EBIT, and EBITDA
- The progression from EBT to EBIT to EBITDA consistently shows an increase in earnings as layers of expenses are added back. This is expected, as interest, taxes, and depreciation are non-cash expenses. The difference between EBT and EBIT remained relatively stable across the period, suggesting consistent interest expense. The difference between EBIT and EBITDA also showed a consistent pattern, indicating a relatively stable depreciation and amortization expense until the decline in 2025.
- Net Income Correlation
- Net income attributable to Honeywell generally followed the trend of EBITDA, increasing from 2021 to 2023, peaking in 2024, and then declining in 2025. This correlation suggests that changes in operational profitability, as reflected in EBITDA, directly impact the company’s bottom line. The decrease in net income in 2025, mirroring the EBITDA decline, reinforces the need to understand the factors contributing to the reduced profitability.
The period between 2021 and 2024 demonstrates a positive trend in profitability metrics. However, the decline observed in 2025 across all reported earnings measures suggests potential challenges or changes in the business environment that require further scrutiny. A detailed analysis of the factors driving the 2025 decrease is recommended to assess the sustainability of future earnings.
Enterprise Value to EBITDA Ratio, Current
Honeywell International Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Boeing Co. | |
| Caterpillar Inc. | |
| Eaton Corp. plc | |
| GE Aerospace | |
| Lockheed Martin Corp. | |
| RTX Corp. | |
| EV/EBITDA, Sector | |
| Capital Goods | |
| EV/EBITDA, Industry | |
| Industrials | |
Based on: 10-K (reporting date: 2025-12-31).
1 Click competitor name to see calculations.
If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.
Enterprise Value to EBITDA Ratio, Historical
Honeywell International Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | ||||||
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | ||||||
| Valuation Ratio | ||||||
| EV/EBITDA3 | ||||||
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| EV/EBITDA, Sector | ||||||
| Capital Goods | ||||||
| EV/EBITDA, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
3 2025 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
The Enterprise Value to EBITDA ratio exhibited fluctuations over the five-year period. Initial values indicated a relatively high valuation, followed by a period of stabilization and then a notable increase towards the end of the observed timeframe.
- Enterprise Value (EV)
- Enterprise Value generally increased throughout the period, with a slight decrease observed between 2022 and 2023. The most substantial increase occurred between 2024 and 2025, rising from US$152,452 million to US$177,023 million. This suggests growing overall company value, potentially driven by factors such as market confidence or strategic acquisitions.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA demonstrated more volatility. A decrease was recorded from 2021 to 2022, followed by a recovery in 2023. While EBITDA continued to rise in 2024, it experienced a decline in 2025, falling to US$8,208 million. This suggests potential operational challenges or increased costs impacting profitability in the final year.
- EV/EBITDA Ratio
- The EV/EBITDA ratio began at 15.57 in 2021, increased to a peak of 18.01 in 2022, and then decreased slightly to 15.55 in 2023. A further increase to 15.87 was observed in 2024 before a significant rise to 21.57 in 2025. This final increase indicates that the enterprise value grew at a faster rate than EBITDA, potentially signaling a higher premium investors were willing to pay for each dollar of EBITDA generated, or a relative decline in operational performance compared to overall valuation.
The combined trends suggest a period of initial expansion followed by a more complex dynamic where enterprise value growth outpaced EBITDA generation in the most recent year. Further investigation into the drivers behind the EBITDA decline in 2025 and the corresponding EV increase would be warranted.