Parker-Hannifin Corporation (PH) DCF Valuation
Transparent DCF models put Parker-Hannifin Corporation (PH)'s fair value in a range of $291.28 – $553.31 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $905.53 sits above that range — by these conservative assumptions it looks richly valued; the reverse-DCF below is the better lens for a high-growth name.
Reverse DCF: at today's $905.53, the market is pricing in roughly +18.5%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of +8.3%. The price is betting on acceleration above its track record.
Current Price
$905.53
Fair-Value Range
$291.28 – $553.31
Market-Implied Growth
+18.5%/yr
vs +8.3% 5Y actual
PH DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $2.8B · 0.13B shares · net debt $8.9B
Estimated Fair Value
$291.28
-67.8% vs $905.53
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $905.53; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $379 | $402 | $429 | $462 | $502 |
| 9.0% | $316 | $331 | $350 | $371 | $396 |
| 10.0% | $267 | $279 | $291 | $306 | $323 |
| 11.0% | $229 | $238 | $247 | $257 | $269 |
| 12.0% | $199 | $205 | $212 | $219 | $228 |
About Parker-Hannifin Corporation
Parker-Hannifin Corporation is a global enterprise specializing in the production and distribution of advanced motion and control technologies and systems. These solutions serve a broad spectrum of international markets, including mobile applications, industrial operations, and the aerospace sector. Its organizational structure is primarily divided into two key business units: Diversified Industrial and Aerospace Systems. Within the Diversified Industrial division, the product portfolio is extensive, covering sealing, protective shielding, thermal management systems, bonding agents, surface coatings, and technologies designed to reduce noise, vibration, and harshness. This segment also provides filtration units, diagnostic tools, and related solutions for purifying fuel, air, oil, water, and various other liquids and gases by eliminating contaminants. Additionally, it produces connectors vital for fluid handling (controlling, transmitting, and containing), along with advanced control mechanisms engineered for demanding environments involving extreme corrosion, temperatures, pressures, and requiring precise flow regulation. Crucially, it supplies hydraulic, pneumatic, and electromechanical components and integrated systems to manufacturers and operators of both mobile and stationary industrial machinery. Products from this division are supplied to original equipment manufacturers (OEMs) as well as to distributors who cater to the aftermarket across a wide array of sectors. These include industries focused on manufacturing, packaging, processing, transportation, construction, climate control (refrigeration and air conditioning), agriculture, and military machinery and equipment. In contrast, the Aerospace Systems segment focuses on delivering specialized components and systems for both commercial and military aircraft structures and engine applications. Its comprehensive offerings encompass control actuation systems, parts for engine construction and exhaust, entire engine systems, fluid transport and fuel systems (including those for fuel tank inerting), hydraulic and lubrication components, pilot interface controls, pneumatic control elements, thermal regulation products, and landing gear wheels and brakes. The segment also provides devices for precise fluid measurement, distribution, and atomization. Sales within this particular division are conducted directly with original equipment manufacturers (OEMs) and final consumers. Overall, Parker-Hannifin distributes its solutions via a diversified sales network, comprising its own dedicated sales personnel, independent distributors, and authorized sales representatives. Established in 1917, the corporation maintains its global headquarters in Cleveland, Ohio.
- Sector
- Industrials
- Industry
- Industrial - Machinery
- CEO
- Jennifer A. Parmentier