Honeywell International Inc (HON) is undervalued and 3M Co (MMM) is overvalued.
Against our estimates of intrinsic value, HON trades at the wider discount: a margin of safety of +43%, against -94% for MMM.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 8.2% (average of 3 methods) values the shares at $368.94; the price of $211.85 is 43% below that value, and 78% of that value comes from beyond year five.
Leak Score 90/100 on 9 of 12 signals
Discounting its cash flows at 9.3% (average of 3 methods) values the shares at $87.07; the price of $169.30 is 94% above that value, and 74% of that value comes from beyond year five.
Leak Score 49/100 on 10 of 12 signals
| Metric | HON | MMM |
|---|---|---|
| Verdict | Undervalued | Overvalued |
| Price | $211.85 | $169.30 |
| Intrinsic value | $368.94 | $87.07 |
| Margin of safety | +43% | -94% |
| Leak Score | 90/100 (9/12) | 49/100 (10/12) |
| Market cap | $67.1B | $87.3B |
| Revenue growth, 5 years | 2.8% | -5.0% |
| Operating margin | 19.2% | 20.9% |
| Net margin | 22.1% | 11.9% |
| Return on equity | 49.9% | 82.8% |
| Debt to equity | 1.89 | 4.46 |
| P/E | 7.8x | 30.1x |
| Forward P/E | 21.2x | 17.2x |
| P/B | 3.6x | 29.6x |
| Dividend yield | 2.1% | 1.9% |