PH Relative Valuation
PH's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, PH is overvalued; if below, it's undervalued.
Historical Valuation
Parker-Hannifin Corp (PH) is now in the Overvalued zone, suggesting that its current forward PE ratio of 28.33 is considered Overvalued compared with the five-year average of 18.83. The fair price of Parker-Hannifin Corp (PH) is between 682.42 to 869.80 according to relative valuation methord. Compared to the current price of 873.66 USD , Parker-Hannifin Corp is Overvalued By 0.44%.
Relative Value
Fair Zone
682.42-869.80
Current Price：873.66
0.44%
Overvalued
28.33
PE
1Y
3Y
5Y
Trailing
Forward
20.35
EV/EBITDA
Parker-Hannifin Corp. (PH) has a current EV/EBITDA of 20.35. The 5-year average EV/EBITDA is 14.40. The thresholds are as follows: Strongly Undervalued below 9.41, Undervalued between 9.41 and 11.90, Fairly Valued between 16.89 and 11.90, Overvalued between 16.89 and 19.39, and Strongly Overvalued above 19.39. The current Forward EV/EBITDA of 20.35 falls within the Strongly Overvalued range.
24.71
EV/EBIT
Parker-Hannifin Corp. (PH) has a current EV/EBIT of 24.71. The 5-year average EV/EBIT is 16.79. The thresholds are as follows: Strongly Undervalued below 11.46, Undervalued between 11.46 and 14.12, Fairly Valued between 19.45 and 14.12, Overvalued between 19.45 and 22.12, and Strongly Overvalued above 22.12. The current Forward EV/EBIT of 24.71 falls within the Strongly Overvalued range.
5.13
PS
Parker-Hannifin Corp. (PH) has a current PS of 5.13. The 5-year average PS is 2.96. The thresholds are as follows: Strongly Undervalued below 1.21, Undervalued between 1.21 and 2.08, Fairly Valued between 3.83 and 2.08, Overvalued between 3.83 and 4.70, and Strongly Overvalued above 4.70. The current Forward PS of 5.13 falls within the Strongly Overvalued range.
26.93
P/OCF
Parker-Hannifin Corp. (PH) has a current P/OCF of 26.93. The 5-year average P/OCF is 16.98. The thresholds are as follows: Strongly Undervalued below 9.63, Undervalued between 9.63 and 13.30, Fairly Valued between 20.65 and 13.30, Overvalued between 20.65 and 24.33, and Strongly Overvalued above 24.33. The current Forward P/OCF of 26.93 falls within the Strongly Overvalued range.
30.79
P/FCF
Parker-Hannifin Corp. (PH) has a current P/FCF of 30.79. The 5-year average P/FCF is 18.96. The thresholds are as follows: Strongly Undervalued below 10.60, Undervalued between 10.60 and 14.78, Fairly Valued between 23.14 and 14.78, Overvalued between 23.14 and 27.32, and Strongly Overvalued above 27.32. The current Forward P/FCF of 30.79 falls within the Strongly Overvalued range.
Parker-Hannifin Corp (PH) has a current Price-to-Book (P/B) ratio of 8.00. Compared to its 3-year average P/B ratio of 5.77 , the current P/B ratio is approximately 38.60% higher. Relative to its 5-year average P/B ratio of 5.29, the current P/B ratio is about 51.27% higher. Parker-Hannifin Corp (PH) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 4.40%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 5.02% , the current FCF yield is about -100.00% lower.
8.00
P/B
Median3y
5.77
Median5y
5.29
3.09
FCF Yield
Median3y
4.40
Median5y
5.02
Competitors Valuation Multiple
The average P/S ratio for PH's competitors is , providing a benchmark for relative valuation. Parker-Hannifin Corp Corp (PH) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 3.67%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of PH increased by 37.36% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 25.48 to 31.11.
The secondary factor is the Margin Expansion, contributed 11.59%to the performance.
Overall, the performance of PH in the past 1 year is driven by P/E Change. Which is more unsustainable.
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