Parker-Hannifin Corporation (PH) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-23.2%

$714.96

vs $931.09 price

Levered DCF

$546.88

After debt service

Piotroski score

9 / 9

Strong

Altman Z-score

6.8

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	33.86×	25.38×	22.64×	24.03×	24.03×	22.68×	19.52×	14.62×
P/B	8.02×	6.55×	5.33×	4.85×	3.57×	4.72×	3.78×	3.71×
P/S	5.75×	4.51×	3.23×	2.63×	1.99×	2.76×	1.72×	1.54×
EV / EBITDA	22.29×	18.22×	14.9×	15.37×	15.03×	14.78×	13.28×	10.15×
Gross margin	37.7%	36.9%	35.9%	33.9%	27.7%	27.2%	25.4%	25.5%
Operating margin	21.6%	20.5%	19.6%	16.9%	17.7%	16.7%	14.5%	14.8%
Net margin	17.0%	17.8%	14.3%	10.9%	8.3%	12.2%	8.8%	10.6%
Current ratio	1.26×	1.19×	0.93×	0.88×	2.06×	1.81×	1.6×	2.43×
Debt / equity	0.55×	0.7×	0.91×	1.26×	1.32×	0.81×	1.36×	1.19×
Interest coverage	11.56×	9.93×	7.7×	5.61×	11.03×	9.61×	6.45×	11.17×
Dividend yield	0.8%	1.0%	1.2%	1.4%	1.8%	1.2%	1.9%	1.9%
Payout ratio	25.7%	24.4%	27.5%	33.8%	43.3%	27.2%	37.8%	27.3%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	23.7%	25.8%	23.6%	20.2%	14.9%	20.8%	19.3%	25.4%
Return on invested capital	14.0%	13.7%	12.1%	9.6%	10.5%	10.8%	9.0%	11.1%
Return on assets	11.8%	12.0%	9.7%	7.0%	5.1%	8.6%	6.0%	8.6%
Free cash flow yield	3.2%	3.7%	4.6%	5.2%	7.0%	6.0%	7.8%	6.9%
Earnings yield	3.0%	3.9%	4.4%	4.2%	4.2%	4.4%	5.1%	6.8%
Enterprise value	$131.6B	$98.8B	$74.9B	$62.6B	$36.7B	$45.7B	$31.3B	$26B
Net debt / EBITDA	1.36×	1.69×	2.1×	3.07×	2.08×	1.97×	3.3×	1.52×
Cash conversion cycle (days)	79	83	84	87	82	79	86	72