Parker-Hannifin Corporation is the world's leading diversified manufacturer of motion and control technologies and systems, providing precision-engineered solutions for a wide variety of mobile, industrial and aerospace markets. The company was founded in 1918 and is based in Cleveland, Ohio.
PH Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Parker Hannifin Corp. To summarize, we found that Parker Hannifin Corp ranked in the 46th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for PH, they are:
Interest coverage, a measure of earnings relative to interest payments, is 5.91 -- which is good for besting 60.48% of its peer stocks (US stocks in the Industrials sector with positive cash flow).
Parker Hannifin Corp's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 20.6% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
FDX, NSC, INFO, PXS, and RRD can be thought of as valuation peers to PH, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
The market's northbound movement makes investing in momentum stocks a wise choice. FedEx (FDX), TE Connectivity (TEL), Parker-Hannifin (PH), Lennar (LEN) and AGCO (AGCO) are likely to offer lucrative returns to investors in 2021.