Honeywell International Inc., FCFF calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income attributable to Honeywell	5,658)	4,966)	5,542)	4,779)	6,143)
Net income attributable to the noncontrolling interest	14)	1)	68)	86)	87)
Net noncash charges	(693)	1,052)	140)	(20)	623)
Changes in assets and liabilities, net of the effects of acquisitions and divestitures	361)	(745)	288)	1,363)	44)
Net cash provided by operating activities	5,340)	5,274)	6,038)	6,208)	6,897)
Interest paid, net of amounts capitalized, net of tax¹	514)	292)	263)	266)	271)
Capital expenditures	(1,039)	(766)	(895)	(906)	(839)
Proceeds from disposals of property, plant and equipment	43)	29)	27)	57)	43)
Free cash flow to the firm (FCFF)	4,858)	4,829)	5,433)	5,625)	6,372)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Honeywell International Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Honeywell International Inc. FCFF decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Honeywell International Inc., interest paid, net of tax calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Effective Income Tax Rate (EITR)
EITR¹	20.80%	22.10%	22.50%	19.10%	21.20%
Interest Paid, Net of Tax
Interest paid, net of amounts capitalized, before tax	649)	375)	339)	329)	344)
Less: Interest paid, net of amounts capitalized, tax²	135)	83)	76)	63)	73)
Interest paid, net of amounts capitalized, net of tax	514)	292)	263)	266)	271)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

¹ See details »

² 2023 Calculation
Interest paid, net of amounts capitalized, tax = Interest paid, net of amounts capitalized × EITR
= 649 × 20.80% = 135

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Honeywell International Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	140,480)
Free cash flow to the firm (FCFF)	4,858)
Valuation Ratio
EV/FCFF	28.92
Benchmarks
EV/FCFF, Competitors¹
Boeing Co.	21.79
Caterpillar Inc.	17.57
Cummins Inc.	15.72
Eaton Corp. plc	40.89
General Electric Co.	32.53
Lockheed Martin Corp.	18.37
RTX Corp.	25.69
EV/FCFF, Sector
Capital Goods	23.54
EV/FCFF, Industry
Industrials	25.17

Based on: 10-K (reporting date: 2023-12-31).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Honeywell International Inc., historical EV/FCFF calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	141,517)	144,024)	136,990)	148,988)	134,643)
Free cash flow to the firm (FCFF)²	4,858)	4,829)	5,433)	5,625)	6,372)
Valuation Ratio
EV/FCFF³	29.13	29.82	25.22	26.49	21.13
Benchmarks
EV/FCFF, Competitors⁴
Boeing Co.	25.63	37.53	—	—	—
Caterpillar Inc.	16.08	23.54	20.50	23.83	16.84
Cummins Inc.	14.10	35.58	21.11	16.67	10.35
Eaton Corp. plc	38.49	33.44	38.16	21.94	15.50
General Electric Co.	29.56	17.29	56.53	32.34	15.85
Lockheed Martin Corp.	17.62	19.69	13.92	14.64	21.21
RTX Corp.	23.86	28.45	27.29	35.26	21.94
EV/FCFF, Sector
Capital Goods	22.77	26.17	31.55	66.05	23.83
EV/FCFF, Industry
Industrials	25.15	25.09	28.18	65.99	30.06

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

¹ See details »

² See details »

³ 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 141,517 ÷ 4,858 = 29.13

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Honeywell International Inc. EV/FCFF ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Honeywell International Inc. (NASDAQ:HON)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical