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	WACC_Market	7.24%	7.20%	$WACC\,=\,\frac { E }{ V } { R }_{ E }\,+\,\frac { P }{ V } { R }_{ P }\,+\,\frac { D }{ V } { R }_{ D }\left( 1- Avg\,\, Tax\,\,Rate\,\,on\,\,Pre-Tax\,\,Income \right)$
Weighted Average Cost of Capital	WACC_Book	9.31%	8.38%
Enterprise value	EV_Market	80,968	91,388	$EV\,=\,Market\,\,Cap\,\,Equity\,+\,\,Long\,\,Term\,\,Debt\,-\,Cash$
Enterprise value	EV_Book	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.
Long-Run Growth	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
Equational Form	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/FCF_OPS $\frac {EV}{FCF_{OPS}} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)$	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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