Honeywell International (HON) Gets Tokenized As Valuation Debate Heats Up
Honeywell International (HON) drew fresh attention after Robinhood listed a tokenized version of the stock on Robinhood Chain, giving on chain traders price exposure to the industrial conglomerate’s shares.
Recent trading has been choppy for Honeywell International, with the share price down about 15% over the past month and roughly 46% lower year to date, even though the 1 year total shareholder return stands at a slightly positive 1.03%.
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Honeywell International now trades well below its recent levels while tokenized access pulls a new crowd toward the ticker. Is this dip enough to justify stepping in now, or does patience still look cheaper?
Most Popular Narrative: 34.5% Undervalued
The most followed Honeywell International narrative pegs fair value at $320.19 per share, well above the recent $209.61 close. This puts a strong spotlight on what has to go right for that gap to close.
Honeywell Automation (RemainCo) is described as a pure-play industrial automation and energy technology compounder with a confirmed June 29 catalyst, $19b+ in contracted backlog, a sold-out LNG order book, a global SAF technology licensing position, a recurring revenue platform transition underway via Forge, and an embedded position on both sides of the energy transition, all trading at what is framed as a conglomerate discount.
Want to see what justifies that higher fair value for Honeywell International? The narrative leans on backlog, margins, and long dated energy and software assumptions that the current share price does not fully reflect.
Result: Fair Value of $320.19 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
Still, the thesis around Honeywell International could crack if automation demand softens further or if the planned separation fails to earn a higher P/E.
Find out about the key risks to this Honeywell International narrative.
Another View: SWS DCF Says Honeywell International Looks Expensive
The popular Honeywell International narrative leans on a fair value of $320.19, yet the SWS DCF model tells a different story. On that approach, the estimated value sits at $136.81 per share, which leaves the recent $209.61 price trading well above the model output. Which lens do you trust more for a long term decision?
Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Honeywell International for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 49 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Next Steps
Mixed messages on Honeywell International so far and still on the fence about what it all means for you? Move quickly, review the underlying data, then weigh the 4 key rewards and 5 important warning signs.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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