Based on the provided data, here's a concise analysis of PH's valuation:
Technical Analysis
Valuation Assessment
Parker-Hannifin currently trades at a PE of 26.27x and EV/EBITDA of 18.23x in Q2 2025, showing elevated multiples compared to historical levels. The PS ratio of 4.17x and PB ratio of 6.24x further indicate rich valuation metrics.
Growth & Profitability
The company demonstrated strong margin expansion with gross margins improving to 36.5% in Q2 2025, while net margin reached an impressive 20%. Revenue showed slight decline to $4.74 billion in Q2 2025, but aerospace segment grew 14% year-over-year.
Analyst Consensus
Recent analyst actions suggest mixed views - while most maintain buy ratings, several have lowered price targets citing industrial slowdown concerns. KeyBanc raised target to $790 citing improved order trends, while UBS lowered target to $805 but maintained Strong Buy rating.
Conclusion
PH appears overvalued at current levels based on elevated valuation multiples, slowing industrial demand, and recent analyst price target reductions, despite strong aerospace growth and margin expansion.