Honeywell International Inc. (NYSE:HON) runs in leading trade, it are falling -0.37% to traded at $113.82. HON attains analyst recommendation of 1.90 on scale of 1-5 with week’s performance of -2.48%.
To find out the technical position of HON, it holds price to book ratio of 4.63 that unearth high-growth companies selling at low-growth prices, but it requires appropriate measurement approach. It has forward price to earnings ratio of 15.67, and price to earnings ratio calculated as 18.02. The price to earnings growth ration calculated as 1.95. HON is presenting price to cash flow of 12.46 and free cash flow concluded as 35.40.
EPS estimates indicating constrictive facts, the current year from sell-side analysts, Price to current year EPS stands at 13.30%, and looking further price to next year’s EPS is 8.84%. While take a short look on price to sales ratio, that was 2.22 and price to earning ration of 18.02 attracting passive investors.
Cummins Inc. (NYSE:CMI) kept active in under and overvalue discussion, CMI holds price to book ratio of 2.95 that presents much better indicator to find market price of a share price over its book value of equity for investment valuation. In addition, the firm has price to earnings ratio of 16.36, which is authentic method to judge but not universal for all situation.
Fundament/ News Factor in Focus
Taking look on ratio analysis, CMI has forward price to earnings ratio of 15.07, compare to its price to earnings ratio of 16.36. Adding one more ration to find detail valuation of security, price to earnings growth ration that stands at 26.39. The co is presenting price to cash flow as 15.81 and while calculating price to free cash flow it concluded at 25.20, the low single digit may indicate stock is undervalued and vise versa. On other hand, keeping in mind stable cash flows but few growth prospects make traders to value lower.
The firm has price volatility of 2.65% for a week and 1.43% for a month. Its beta stands at 1.47 times. Narrow down four to firm performance, its weekly performance was -4.56% and monthly performance was -3.99%.