Using the industry peer median P/E multiple (trailing + forward), Parker-Hannifin Corporation (PH) has a fair value of $660.46 based on 10 comparable companies in the Industrial - Machinery industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Parker-Hannifin CorporationPH | 118,072 | 33.4x | 33.9x |
| Lockheed Martin CorporationLMT | 145,078 | 29.2x | 20.9x |
| Northrop Grumman CorporationNOC | 98,495 | 23.9x | 24.8x |
| General Dynamics CorporationGD | 96,280 | 23.0x | 21.8x |
| Howmet Aerospace Inc.HWM | 93,360 | 62.5x | 50.4x |
| Trane Technologies plcTT | 90,804 | 31.5x | 36.7x |
| Automatic Data Processing, Inc.ADP | 82,824 | 20.5x | 22.4x |
| 3M CompanyMMM | 76,424 | 24.2x | 16.7x |
| Illinois Tool Works Inc.ITW | 75,379 | 24.9x | 25.0x |
| Cummins Inc.CMI | 73,414 | 25.9x | 25.9x |
| Emerson Electric Co.EMR | 71,660 | 31.5x | 21.2x |
| Industry Median | 25.4x | 23.6x | |
| (*) Profit after tax | 3,531 | 3,484 | |
| Equity Value | 89,781 | 82,202 | |
| (/) Outstanding shares | 130 | 130 | |
| Fair Price | $690 | $631 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.