Stock Analysis on Net

Honeywell International Inc. (NASDAQ:HON)

$24.99

Enterprise Value to EBITDA (EV/EBITDA)

Microsoft Excel

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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Honeywell International Inc., EBITDA calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income attributable to Honeywell
Add: Net income attributable to noncontrolling interest
Add: Income tax expense
Earnings before tax (EBT)
Add: Interest and other financial charges
Earnings before interest and tax (EBIT)
Add: Depreciation
Add: Amortization
Earnings before interest, tax, depreciation and amortization (EBITDA)

Based on: 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), 10-K (reporting date: 2020-12-31).


The financial data reveals several key trends in the profitability metrics over the five-year period ending December 31, 2024. Overall, the company has experienced growth in earnings figures, with some fluctuations that merit closer examination.

Net Income Attributable to the Company
Net income grew from $4,779 million in 2020 to $5,542 million in 2021, indicating a strong improvement. However, in 2022 there was a decline to $4,966 million, suggesting potential challenges or increased costs during that year. The figure rebounded in subsequent years, reaching $5,658 million in 2023 and slightly increasing to $5,705 million in 2024, reflecting recovery and stabilization in profitability.
Earnings Before Tax (EBT)
EBT showed a commendable upward trend from $6,012 million in 2020 to $7,235 million in 2021, confirming operational strength. A decrease occurred in 2022 to $6,379 million, paralleling the drop in net income for the same year. This was followed by a recovery to $7,159 million in 2023 and a slight increase to $7,213 million in 2024, consistent with improving earnings before taxes.
Earnings Before Interest and Tax (EBIT)
EBIT increased significantly from $6,371 million in 2020 to $7,578 million in 2021, representing enhanced operational efficiency. A dip to $6,793 million in 2022 again echoes the lower earnings trend observed across other metrics. Subsequent years showed solid growth with EBIT reaching $7,924 million in 2023 and climbing further to $8,271 million in 2024, signaling strengthening core business profitability.
Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
EBITDA moved from $7,373 million in 2020 and increased to $8,801 million in 2021, highlighting strong cash flow generation capabilities. The 2022 figure dropped to $7,997 million, consistent with the year’s overall decline in earnings. Nevertheless, the data for 2023 and 2024 demonstrate recovery, with EBITDA rising to $9,100 million and $9,605 million, respectively, suggesting improved operational cash earnings and potentially increased efficiency or profitability in those years.

In summary, the financial performance exhibits a pattern of growth from 2020 to 2021, a downturn in 2022 across all profitability metrics, followed by a recovery phase in 2023 and 2024. The rebound in earnings and cash flow indicators towards the end of the period signals improved operational conditions and management effectiveness in restoring growth momentum.


Enterprise Value to EBITDA Ratio, Current

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

Microsoft Excel
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: 2024-12-31).

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

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
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: 2024-12-31), 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).

1 See details »

2 See details »

3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =

4 Click competitor name to see calculations.


Enterprise Value (EV)
The enterprise value exhibited fluctuations over the five-year period. It initially decreased from $148,988 million in 2020 to $136,990 million in 2021, representing a decline. Subsequently, it rebounded to $144,024 million in 2022, followed by a slight decrease to $141,517 million in 2023. In 2024, it increased again, reaching $152,452 million, the highest value in the analyzed period. This pattern indicates moderate volatility in the market valuation of the company with a notable recovery and upward trend in the latest year.
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
EBITDA demonstrated a generally positive trend over the same period. There was a substantial increase from $7,373 million in 2020 to $8,801 million in 2021, followed by a decline to $7,997 million in 2022. From 2022 onwards, EBITDA showed consistent growth, rising to $9,100 million in 2023 and further to $9,605 million in 2024. This overall improvement reflects enhanced operational performance and profitability.
EV/EBITDA Ratio
The EV/EBITDA ratio, which provides a valuation multiple, decreased notably from 20.21 in 2020 to 15.57 in 2021, indicating a potentially more attractive valuation relative to earnings. However, it increased again to 18.01 in 2022, suggesting a higher valuation multiple or slightly diminished earnings effect relative to enterprise value. The ratio then declined to 15.55 in 2023 and slightly increased to 15.87 in 2024. The lower and relatively stable ratios in the later years may reflect a healthier valuation environment and effective earnings growth.