Honeywell

Analyst Listing

The following analysts provide coverage for the subject firm as of May 2016:

Broker Analyst Analyst Email
Morningstar Barbara Noverini barbara.noverini@morningstar.com
Langenberg, LLC Brian K. Langenberg brian@langenberg-llc.com
Oppenheimer Christopher Glynn christopher.glynn@opco.com
RBC Capital Markets Deane M. Dray deane.dray@rbccm.com
Cowen & Company Gautam Khanna gautam.khanna@cowen.com
Jefferies Howard A. Rubel hrubel@jefferies.com
Gabelli & Company James Foung jfoung@gabelli.com
Argus Research John Eade jeade@argusresearch.com
Deutsche Bank Research John G. Inch john.inch@db.com
Credit Suisse Julian Mitchell julian.mitchell@credit-suisse.com
William Blair Nicholas P. Heymann nheymann@williamblair.com
Sterne Agee CRT Peter Arment parment@sterneageecrt.com
Atlantic Equities Richard Radbourne r.radbourne@atlantic-equities.com
Drexel Hamilton Richard Whittington rwhittington@drexelhamilton.com
Stifel Nicolaus Robert P. McCarthy mccarthyr@stifel.com
Bernstein Research Steven E. Winoker steven.winoker@bernstein.com

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Primary Input Data

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Derived Input Data

Derived Input

Label

2015 Value

2016
Value

Equational Form

Net Operating Profit Less Adjusted Taxes NOPLAT 4,722 4,776 NOPLAT\, =\, EBIT\, x\, (1 \,-\, Avg \,\,Tax\,\, Rate\,\, on\,\, EBIT)
Free Cash Flow FCF 4,381 4,403 FCF\,=NOPLAT\,+\,Non-Cash\,Expenses-\Delta NWC\,-\,NCS
Tax Shield TS 83  67 TS\,=\,Interest\,\,Paid\,\,x\,\, Avg \,\,Tax\,\,Rate\,\, on\,\, Pre-Tax\,\, Income
Invested Capital IC 30,945 37,815 IC\,=\,Fixed\,\,Operating\,\,Assets\,\,+\,\,Net\,\, Working\,\, Capital
Return on Invested Capital ROIC 15.26% 12.63% ROIC\,=\,\frac { NOPLAT }{ IC }
Net Investment NetInv  1,150  7,900 NetInv\,=\,{ {IC}_{1}}-{{IC}_{0}}+Depreciation
Investment Rate IR  24.35% 165.40% IR\,=\,\frac {NetInv}{NOPLAT}
Weighted Average Cost of Capital
WACCMarket  7.24%  7.20% WACC\,=\,\frac { E }{ V } { R }_{ E }\,+\,\frac { P }{ V } { R }_{ P }\,+\,\frac { D }{ V } { R }_{ D }\left( 1- Avg\,\, Tax\,\,Rate\,\,on\,\,Pre-Tax\,\,Income \right)
 WACCBook   9.31%  8.38%
Enterprise value
EVMarket  80,968  91,388 EV\,=\,Market\,\,Cap\,\,Equity\,+\,\,Long\,\,Term\,\,Debt\,-\,Cash
 EVBook  79,889   92,478
Long-Run Growth
g = IR x ROIC
  3.72%   20.89% Long-run growth rates of the income variable are used in the Continuing Value portion of the valuation models.
g = % \Delta GDP   2.50%    2.50%
Margin from Operations M  18.84%  18.69% M\,\,=\,\,\frac{EBIT}{SALES}
Depreciation/Amortization Rate D  10.84%  12.29% D\,\,=\,\,\frac{D+A}{EBITDA}

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Valuation Multiple Outcomes

The outcomes presented in this study are the result of original input data, derived data, and synthesized inputs.

Equational Form

Observed Value

Single-stage

multiple g solution

Two-stage valuation

model g solution

12/31/2015 12/31/2016 12/31/2015 12/31/2016 12/31/2015 12/31/2016

EV/SALES 

\frac {EV}{Sales} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(M)

 2.10  2.33  2.28%  3.37%  2.45%  4.46%

EV/EBITDA

\frac {EV}{EBITDA} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(1\,-\,D)

9.94 10.91 2.28% 3.37% 2.45% 4.46%

EV/NOPLAT

\frac {EV}{NOPLAT} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}

17.25 19.13 2.28% 3.37% 2.45% 4.46%

EV/FCFOPS

\frac {EV}{FCF_{OPS}} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)

18.48 20.76 2.28% 3.37% 2.45% 4.46%

EV/EBIT

\frac {EV}{EBIT} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)

11.14 12.44 2.28% 3.37% 2.45% 4.46%

EV/IC

\frac {EV}{IC} \,= \,\frac{ROIC\,  -\,  g}{WACC\,-\,g}

 2.62 2.42 2.28% 3.37% 2.45% 4.46%

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