HON — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($243.59)
DCF	$93.24	-61.7%
Graham Number	$61.10	-74.9%
Reverse DCF	—	implied g: 18.4%
DDM	$98.06	-59.7%
EV/EBITDA	$245.67	+0.9%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $4.66B

Near-term growth (yrs 1–5)(%)Rev: -3.3% / EPS: -76.4%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.41%

Computed WACC: 8.41%

Cost of equity (Re)9.41%(Rf 4.30% + β 0.93 × ERP 5.50%)

Cost of debt (Rd)4.77%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)82.19%

Debt weight (D/V)17.81%

Results

Intrinsic Value / share$106.26

Current Price$243.59

Upside / Downside-56.4%

Net Debt (used)$22.63B

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$94.35	$120.63	$151.22	$186.61	$227.38
8.0%	$71.22	$92.37	$116.95	$145.36	$178.04
9.0%	$55.19	$72.80	$93.24	$116.83	$143.93
10.0%	$43.42	$58.45	$75.86	$95.92	$118.96
11.0%	$34.41	$47.47	$62.57	$79.96	$99.89

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $7.58

Book Value / share($)Yahoo: $21.89

Results

Graham Number$61.10

Current Price$243.59

Margin of Safety-74.9%

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.41%

Terminal growth rate(%)

Computed WACC: 8.41%

Cost of equity (Re)9.41%(Rf 4.30% + β 0.93 × ERP 5.50%)

Cost of debt (Rd)4.77%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)82.19%

Debt weight (D/V)17.81%

Results

Current Price$243.59

Implied Near-term FCF Growth16.5%

Historical Revenue Growth-3.3%

Historical Earnings Growth-76.4%

Base FCF (TTM)$4.66B

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: $4.76

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$98.06

Current Price$243.59

Upside / Downside-59.7%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $8.47B

Target EV/EBITDA multipleCurrent: 21.1×

Net Debt($B)Default: $22.63B

Results

Implied Equity Value / share$245.67

Current Price$243.59

Upside / Downside+0.9%

Implied EV$178.61B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	$10.63B	$16.63B	$22.63B	$28.63B	$34.63B
17.1x	$211.22	$201.77	$192.32	$182.87	$173.42
19.1x	$237.90	$228.45	$219.00	$209.55	$200.10
21.1x	$264.57	$255.12	$245.67	$236.22	$226.77
23.1x	$291.25	$281.80	$272.35	$262.90	$253.45
25.1x	$317.92	$308.47	$299.02	$289.57	$280.12

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