Parker-Hannifin Corporation manufactures and sells motion and control technologies and systems for aerospace and defense, in-plant and industrial equipment, transportation, off-highway, energy, and HVAC and refrigeration markets in North America, Europe, Asia Pacific, and Latin America. The company operates through two segments: Diversified Industrial and Aerospace Systems.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS. Shaded region = analyst consensus for the current and next fiscal year (27 analysts).
| Parameter | BaseValue |
|---|---|
Initial Cash Flow | |
| Growth Rate (Yr 1-5) | % |
| Growth Rate (Yr 6-10) | % |
| Terminal Growth Rate | % |
| Discount Rate | % |
Base Case $663.35 Implied EV: $92.75B |
What growth rate is the market pricing in at $953?
The market implies +14.2% Owner Earnings growth, below historical trends — potential opportunity.
Standard FCF implies a more demanding +19.2%, reflecting heavy growth investment expected to generate future returns.
Wide moat with strength across all dimensions. Reinvestment Efficiency is the standout factor.
"Market is optimistic — be cautious and ensure you have a margin of safety"
Price significantly exceeds estimated intrinsic value while market sentiment is euphoric — elevated risk
