HONCAUTIOUS

HON P/E Ratio Analysis

8.2x

Updated 987h ago·SEC filings & market data

Key Takeaway

A P/E ratio of 8.2x means investors pay $8.20 for every $1 of the company's annual earnings per share — a low price relative to current profits.

Sector Performance

5th percentile

HON

8.2x

Sector Median

22.9x

Sector Avg

34.3x

Prior Period

15.8x(Jul 2026)

↑ Improving

📊

Deep Analysis

A P/E ratio of 8.2x means investors pay $8.20 for every $1 of the company's annual earnings per share — a low price relative to current profits.

This sits well below the sector median of 22.9x, placing HON at the 5th percentile among peers, meaning 95% of comparable companies trade at a higher multiple. Trend data is unavailable, so no year-over-year or quarter-over-quarter change can be established, leaving the 8.2x as a single snapshot. The combination of a deeply discounted valuation with no observable trajectory implies either a potential value entry point or market skepticism about future earnings sustainability. Because the low P/E is not confirmed by any improving trend, it fails to offset the underlying caution in the verdict. This metric supports the CAUTIOUS overall stance, as a cheap multiple alone does not resolve risk without earnings visibility.

Frequently Asked Questions

What does the P/E Ratio tell investors about HON?

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

How is the P/E Ratio calculated?

P/E Ratio is calculated as: Price / EPS.

📚

Learn More About P/E Ratio

DCF Valuation: How to Estimate What a Stock Is Actually Worth

Discounted Cash Flow is the most rigorous way to value a company. It's also the most misunderstood. Here's a plain-English walkthrough with a real example.

The Formula

Price / EPS

Why It Matters

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.