Question 1

What is Honeywell International, Inc.'s WACC?

Accepted Answer

Honeywell International, Inc. (HON) has a Weighted Average Cost of Capital (WACC) of 6.93%. This is calculated using a Cost of Equity of 8.18% (via CAPM with a beta of 0.78) and a pre-tax Cost of Debt of 4.87%, with an equity weight of 71.20% in the capital structure.

Question 2

Is Honeywell International, Inc.'s WACC high or low?

Accepted Answer

Honeywell International, Inc.'s WACC of 6.93% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is Honeywell International, Inc.'s WACC calculated?

Accepted Answer

Honeywell International, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.18% is derived from the CAPM model using a beta of 0.78. The pre-tax Cost of Debt (Rd) is 4.87%. The capital structure is 71.20% equity and 28.80% debt.

Honeywell International, Inc. (HON) — WACC 分析

WACC 构成

解读

Honeywell International, Inc.（HON）WACC：6.93%

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Honeywell International, Inc.（HON） WACC 解读

HON 公司分析

HON DCF 估值

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