Parker-Hannifin Corporation

IndustrialsIndustrial - MachineryNYSE

$886.85

Market Cap: $111.82B

Parker-Hannifin Corporation (PH) Valuation Summary

Updated May 9, 2026 06:49

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$233.68 – $811.27	$374.52	-57.8%
Growth Exit 10Y	$293.17 – $958.29	$456.92	-48.5%
EBITDA Exit 5Y	$396.56 – $745.84	$557.16	-37.2%
EBITDA Exit 10Y	$414.03 – $843.61	$598.76	-32.5%
▸ Trading Multiples
P/E	$607.88 – $948.46	$639.93	-27.8%
EV/EBITDA	$535.83 – $715.85	$644.16	-27.4%
EV/Revenue	$268.91 – $702.60	$527.75	-40.5%
▸ PEG
PEG Fair Value	$391.46 – $391.46	$391.46	-55.9%
▸ Earnings Power Value
Earnings Power Value	$154.43 – $253.10	$194.89	-78.0%
▸ Dividend Discount
Dividend Discount	$122.02 – $273.53	$176.86	-80.1%

Valuation History

DCF Analysis

Fair Value

$374.52

Market Price

$886.85

Upside / Downside

-57.8%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Parker-Hannifin Corporation's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 7.3% to 8.4% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 63, DPO 58, DIO 78). At a 8.3% WACC with mid-year discounting, the terminal value (77% of enterprise value) is derived from the Gordon Growth Model on Year 6 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $374.52 per share, suggesting PH is overvalued by 57.8% at the current price of $886.85.

FCFF Present Value Calculation

WACC

8.34%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	3,375	3,623	3,855	4,280	4,642	4,758
(−) Net Interest	467	501	533	592	642	658
(+) D&A	331	367	404	417	435	446
EBITDA	4,173	4,491	4,793	5,289	5,719	5,862

(−) Tax	660	709	754	837	908	931
(−) CapEx	388	417	443	492	534	547
(−) ΔWC	376	328	307	563	479	491
Free Cash Flow (FCFF)	2,749	3,038	3,288	3,397	3,799	3,894

Terminal Value						66,701
WACC / Discount Rate	8.3%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	2,641	2,694	2,692	2,567	2,649	44,693

Enterprise Value	57,935
Projection Period	13,243	22.9%
Terminal Value	44,693	77.1%

(−) Current Net Debt	9,173

Equity Value	48,762
(/) Outstanding Shares	130

Fair Price	$374.52

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
6.3%	$491	$543	$609	$695	$811
7.3%	$393	$427	$468	$518	$581
8.3%	$324	$347	$375	$407	$445
9.3%	$273	$290	$309	$331	$357
10.3%	$234	$246	$260	$276	$294

Current price: $886.85. Green = undervalued, Red = overvalued.

Fair Value

$456.92

Market Price

$886.85

Upside / Downside

-48.5%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Parker-Hannifin Corporation's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 7.3% to 3.9% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 63, DPO 58, DIO 78). At a 8.3% WACC with mid-year discounting, the terminal value (62% of enterprise value) is derived from the Gordon Growth Model on Year 11 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $456.92 per share, suggesting PH is overvalued by 48.5% at the current price of $886.85.

FCFF Present Value Calculation

WACC

8.34%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	3,375	3,623	3,855	4,280	4,642	4,992	5,324	5,628	5,900	6,130	6,283
(−) Net Interest	467	501	533	592	642	691	737	779	816	848	869
(+) D&A	331	367	404	417	435	455	492	531	572	609	624
EBITDA	4,173	4,491	4,793	5,289	5,719	6,138	6,552	6,938	7,288	7,587	7,777

(−) Tax	660	709	754	837	908	977	1,042	1,101	1,154	1,199	1,229
(−) CapEx	388	417	443	492	534	574	612	647	678	705	722
(−) ΔWC	376	328	307	563	479	463	438	403	359	305	313
Free Cash Flow (FCFF)	2,749	3,038	3,288	3,397	3,799	4,124	4,460	4,787	5,096	5,378	5,513

Terminal Value											94,435
WACC / Discount Rate	8.3%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	2,641	2,694	2,692	2,567	2,649	2,655	2,650	2,625	2,580	2,513	42,398

Enterprise Value	68,664
Projection Period	26,266	38.3%
Terminal Value	42,398	61.7%

(−) Current Net Debt	9,173

Equity Value	59,491
(/) Outstanding Shares	130

Fair Price	$456.92

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
6.3%	$625	$679	$748	$837	$958
7.3%	$498	$532	$572	$622	$684
8.3%	$409	$431	$457	$487	$524
9.3%	$344	$359	$376	$396	$419
10.3%	$293	$304	$316	$330	$346

Current price: $886.85. Green = undervalued, Red = overvalued.

Fair Value

$557.10

Market Price

$886.85

Upside / Downside

-37.2%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Parker-Hannifin Corporation's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 7.3% to 8.4% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 63, DPO 58, DIO 78). At a 8.3% WACC with mid-year discounting, the terminal value (84% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 17.4x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $557.16 per share, suggesting PH is overvalued by 37.2% at the current price of $886.85.

FCFF Present Value Calculation

WACC

8.34%

3% – 20%

EV/EBITDA Exit Multiple

17.43x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	3,375	3,623	3,855	4,280	4,642	4,758
(−) Net Interest	467	501	533	592	642	658
(+) D&A	331	367	404	417	435	446
EBITDA	4,173	4,491	4,793	5,289	5,719	5,862

(−) Tax	660	709	754	837	908	—
(−) CapEx	388	417	443	492	534	—
(−) ΔWC	376	328	307	563	479	—
Free Cash Flow (FCF)	2,749	3,038	3,288	3,397	3,799	—

Peers' EBITDA Multiple						17.4x
Terminal Value						102,180
WACC / Discount Rate	8.34%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	2,641	2,694	2,692	2,567	2,649	68,466

Enterprise Value	81,708
Projection Period	13,243	16.2%
Terminal Value	68,466	83.8%

(−) Current Net Debt	9,173
Equity Value	72,535
(÷) Outstanding Shares	130M
Fair Price	$557	-37.2%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	13.4x	15.4x	17.4x	19.4x	21.4x
6.3%	$481	$547	$613	$680	$746
7.3%	$458	$521	$585	$648	$711
8.3%	$436	$497	$557	$617	$678
9.3%	$416	$474	$531	$589	$647
10.3%	$397	$452	$507	$562	$617

Current price: $886.85. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$598.72

Market Price

$886.85

Upside / Downside

-32.5%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Parker-Hannifin Corporation's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 7.3% to 3.9% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 63, DPO 58, DIO 78). At a 8.3% WACC with mid-year discounting, the terminal value (70% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 17.4x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $598.76 per share, suggesting PH is overvalued by 32.5% at the current price of $886.85.

FCFF Present Value Calculation

WACC

8.34%

3% – 20%

EV/EBITDA Exit Multiple

17.43x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	3,375	3,623	3,855	4,280	4,642	4,992	5,324	5,628	5,900	6,130	6,283
(−) Net Interest	467	501	533	592	642	691	737	779	816	848	869
(+) D&A	331	367	404	417	435	455	492	531	572	609	624
EBITDA	4,173	4,491	4,793	5,289	5,719	6,138	6,552	6,938	7,288	7,587	7,777

(−) Tax	660	709	754	837	908	977	1,042	1,101	1,154	1,199	—
(−) CapEx	388	417	443	492	534	574	612	647	678	705	—
(−) ΔWC	376	328	307	563	479	463	438	403	359	305	—
Free Cash Flow (FCF)	2,749	3,038	3,288	3,397	3,799	4,124	4,460	4,787	5,096	5,378	—

Peers' EBITDA Multiple											17.4x
Terminal Value											135,555
WACC / Discount Rate	8.34%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	2,641	2,694	2,692	2,567	2,649	2,655	2,650	2,625	2,580	2,513	60,860

Enterprise Value	87,126
Projection Period	26,266	30.1%
Terminal Value	60,860	69.9%

(−) Current Net Debt	9,173
Equity Value	77,953
(÷) Outstanding Shares	130M
Fair Price	$599	-32.5%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	13.4x	15.4x	17.4x	19.4x	21.4x
6.3%	$585	$650	$714	$779	$844
7.3%	$536	$595	$654	$713	$771
8.3%	$491	$545	$599	$652	$706
9.3%	$451	$500	$549	$598	$647
10.3%	$414	$459	$503	$548	$593

Current price: $886.85. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$639.93

Market Price

$886.85

Upside / Downside

-27.8%

Verdict

Overvalued

Using the industry peer median P/E Multiples multiple (trailing + forward), Parker-Hannifin Corporation (PH) has a fair value of $639.93 based on 10 comparable companies in the Industrial - Machinery industry.

P/E Valuation — Industrial - Machinery

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing P/E	Forward P/E
Parker-Hannifin CorporationPH	115,468	32.7x	33.1x
Lockheed Martin CorporationLMT	116,783	23.6x	16.9x
Howmet Aerospace Inc.HWM	108,478	72.9x	57.0x
Trane Technologies plcTT	103,854	36.2x	42.1x
Cummins Inc.CMI	93,770	33.1x	33.1x
General Dynamics CorporationGD	93,712	22.4x	20.9x
Automatic Data Processing, Inc.ADP	85,141	21.3x	23.3x
Emerson Electric Co.EMR	79,137	35.0x	23.5x
Northrop Grumman CorporationNOC	78,050	18.9x	19.7x
3M CompanyMMM	74,735	23.9x	16.5x
Illinois Tool Works Inc.ITW	73,422	24.3x	24.4x
Industry Median		24.1x	23.4x
(*) Profit after tax		3,531	3,484
Equity Value		85,040	81,597
(/) Outstanding shares		130	130
Fair Price		$653	$627

Selected Fair Value (avg of trailing + forward)

$639.93

-27.8%

Fair Value

$644.16

Market Price

$886.85

Upside / Downside

-27.4%

Verdict

Overvalued

Using the industry peer median EV/EBITDA multiple (trailing + forward), Parker-Hannifin Corporation (PH) has a fair value of $644.16 based on 10 comparable companies in the Industrial - Machinery industry.

EV/EBITDA Valuation — Industrial - Machinery

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
Parker-Hannifin CorporationPH	115,468	23.0x	23.1x
Lockheed Martin CorporationLMT	116,783	17.3x	16.4x
Howmet Aerospace Inc.HWM	108,478	45.9x	40.0x
Trane Technologies plcTT	103,854	25.6x	27.6x
Cummins Inc.CMI	93,770	18.4x	18.3x
General Dynamics CorporationGD	93,712	16.6x	15.8x
Automatic Data Processing, Inc.ADP	85,141	14.6x	15.6x
Emerson Electric Co.EMR	79,137	18.9x	18.8x
Northrop Grumman CorporationNOC	78,050	13.0x	12.4x
3M CompanyMMM	74,735	14.1x	14.0x
Illinois Tool Works Inc.ITW	73,422	17.5x	17.6x
Industry Median		17.4x	17.0x
(*) EBITDA		5,423	5,387
= Enterprise Value		94,532	91,554
(-) Net Debt		9,173	9,173
Equity Value		85,359	82,381
(/) Outstanding shares		130	130
Fair Price		$656	$633

Selected Fair Value (avg of trailing + forward)

$644.16

-27.4%

Fair Value

$527.75

Market Price

$886.85

Upside / Downside

-40.5%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Parker-Hannifin Corporation (PH) has a fair value of $527.75 based on 10 comparable companies in the Industrial - Machinery industry.

EV/Revenue Valuation — Industrial - Machinery

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Parker-Hannifin CorporationPH	115,468	6.3x	6.3x
Lockheed Martin CorporationLMT	116,783	1.8x	1.7x
Howmet Aerospace Inc.HWM	108,478	13.4x	11.7x
Trane Technologies plcTT	103,854	5.0x	5.4x
Cummins Inc.CMI	93,770	2.9x	2.9x
General Dynamics CorporationGD	93,712	1.9x	1.8x
Automatic Data Processing, Inc.ADP	85,141	4.4x	4.7x
Emerson Electric Co.EMR	79,137	5.1x	5.1x
Northrop Grumman CorporationNOC	78,050	2.2x	2.1x
3M CompanyMMM	74,735	3.3x	3.3x
Illinois Tool Works Inc.ITW	73,422	5.1x	5.1x
Industry Median		3.9x	4.0x
(*) Revenue		19,850	19,719
= Enterprise Value		76,654	79,119
(-) Net Debt		9,173	9,173
Equity Value		67,481	69,946
(/) Outstanding shares		130	130
Fair Price		$518	$537

Selected Fair Value (avg of trailing + forward)

$527.75

-40.5%

PEG Fair Value

Fair Value

$391.46

Market Price

$886.85

Upside / Downside

-55.9%

Verdict

Overvalued

Using the PEG framework with analyst consensus forward EPS growth of 12.6% plus 0.8% dividend yield, the company has a fair value of $391.46 based on NTM EPS (FY2026) of $31.16. The current PEG ratio is 2.27.

PEG Ratio

2.27Expensive

01.02.03.0+

PEG = P/E ÷ (Growth + Yield) = 28.5 ÷ (11.8% + 0.8%) = 2.27

PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.

Growth Category: StalwartPEG highly applicable

PEG works well for steady growers with predictable earnings.

Fair Value Calculation

EPS Growth RateForward	11.8%
Dividend Yield	+0.8%
Adjusted Growth (clamped 8–25%)	12.6%
Fair P/E	12.6x
NTM EPS (FY2026)	$31.16
Fair Value	$391.46

Growth Analysis

Forward GrowthActive

Period	EPS Est.	Growth	Analysts
FY2025 (actual)	$27.12	—	—
FY2026E	$31.16	+14.9%	15
FY2027E	$34.12	+9.5%	17
FY2028E	$37.46	+9.8%	11
FY2029E	$42.36	+13.1%	8

4Y Forward EPS CAGR: 11.8%

Historical Growth

Year	Net Income	EPS	YoY
FY2021	$1.7B	$13.35	—
FY2022	$1.3B	$10.09	-24.4%
FY2023	$2.1B	$16.04	+59.0%
FY2024	$2.8B	$21.84	+36.2%
FY2025	$3.5B	$27.12	+24.2%

4Y Historical EPS CAGR: 19.4%

Earnings Power Value

Fair Value

$194.89

Market Price

$886.85

Upside / Downside

-78.0%

Verdict

Overvalued

Using the Earnings Power Value framework with a WACC of 8.3% and normalized earnings of $2.9B, the company has a fair value of $194.89 per share. The EPV range is $154.43 – $253.10 based on WACC sensitivity (6.8% – 9.8%).

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	2,880	2,880	2,880
(/) WACC	9.8%	8.3%	6.8%
Enterprise Value	29,280	34,548	42,127
(-) Net debt	9,173	9,173	9,173
Equity Value	20,107	25,375	32,954
(/) Outstanding shares	130	130	130
Fair Price	$154.43	$194.89	$253.10

Dividend Discount Model

Fair Value

$176.86

Market Price

$886.85

Upside / Downside

-80.1%

Verdict

Overvalued

Using the Two-Stage Dividend Discount Model with a Cost of Equity of 8.7% and projected dividend growth of 14.2%, the fair value is $176.86 per share. The DDM range is $122.02 – $273.53 based on sensitivity analysis across Cost of Equity and growth rate assumptions.

Dividend Profile

Current DPS

$6.61

Dividend Yield

0.77%

Payout Ratio

24.4%

Dividend Coverage

4.10x

FCF Payout Ratio25.8%

DPS CAGR (4Y)16.2%

Historical Dividends Per Share

Year	DPS	Payout Ratio	YoY Growth
2025	$6.61	24.4%	+10.1%
2024	$6.00	27.5%	+10.7%
2023	$5.42	33.8%	+24.1%
2022	$4.37	43.3%	+20.4%
2021	$3.63	27.2%	—

Dividend Projections (5-Year)

Year	Projected DPS	Growth	Discount Factor	Present Value
2026	$7.55	14.2%	0.9196	$6.94
2027	$8.62	14.2%	0.8457	$7.29
2028	$9.84	14.2%	0.7777	$7.65
2029	$11.23	14.2%	0.7152	$8.03
2030	$12.82	14.2%	0.6577	$8.43
Terminal Value	$13.15 DPS	2.5%		$138.51

PV of Projected Dividends$38.35

PV of Terminal Value$138.51

Fair Value per Share$176.86

Sensitivity Analysis

Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.

Ke \ Growth	12.2%	13.2%	14.2%	15.0%	15.0%
6.7%	$243	$254	$264	$274	$274
7.7%	$195	$204	$212	$220	$220
8.7%	$163	$170	$177	$183	$183
9.7%	$140	$145	$151	$156	$156
10.7%	$122	$127	$132	$136	$136

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.