Honeywell: Overvalued

Honeywell (NYSE:<a href=GE) continuing to garner headlines, Honeywell (HON) quietly continues to move forward. HON recently received additional analyst commentary with a price raise and increased confidence in the company's bull case, even calling the company the next multi-industry investment leader. Investors appear to love the stock as well. HON has now gained 32.37% year to date and does not appear to be slowing down. The question now remains whether investors have driven the company too far or whether there is room to run some more.

Where are we at?

To answer that question, let's take a look at some of the current valuation metrics and how the company compares to its peers. HON current price to earnings ratio is 23.1. YCharts reports that the 5-year average is 19.1 while shows that HON's 10-year median PE ratio is 18.6. The industry median is 23.1x while the market is 21.7x. These indicators suggest that HON is currently overvalued compared to its historical norms, the industry and the market.


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