HONCAUTIOUS

HON EV/EBITDA Analysis

11.1x

Updated 201h ago·SEC filings & market data

Key Takeaway

EV/EBITDA measures a company’s total value, including debt, relative to its operating earnings, so HON’s 12.2x means investors pay $12.20 for every $1 of EBITDA.

Sector Performance

36th percentile

HON

11.1x

Sector Median

13.6x

Sector Avg

-30.9x

Prior Period

12.2x(Aug 2026)

↑ Improving

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Deep Analysis

EV/EBITDA measures a company’s total value, including debt, relative to its operating earnings, so HON’s 12.2x means investors pay $12.20 for every $1 of EBITDA.

This sits below the sector median of 13.5x, placing HON at the 43rd percentile among peers, so it is somewhat cheaper than the typical sector company. The metric is increasing: no year-over-year change is available, but quarter-over-quarter it rose 1.0%, from 12.1x to 12.2x, after being 11.3x two quarters earlier. A rising multiple while staying below the median suggests the market is gradually assigning a higher valuation, which can signal improving expectations but also leaves less room for error. The combination of a below-median level with an upward trend offers some opportunity if earnings grow into the valuation, yet the rising multiple adds risk if expectations outpace results. This metric supports the CAUTIOUS verdict because the upward drift in valuation, without a confirmed year-over-year improvement, warrants careful monitoring rather than strong conviction.

Frequently Asked Questions

What does the EV/EBITDA tell investors about HON?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

Who are HON's closest peers by EV/EBITDA?

The closest peers by EV/EBITDA include: SMTC (76.6x), SHOP (80.2x), OKTA (83.5x), TEAM (101.4x), STEM (102.7x).

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Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.