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 50th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 8.5%. The most interesting components of our discounted cash flow analysis for Parker Hannifin Corp ended up being:
The company has produced more trailing twelve month cash flow than 91.59% of its sector Industrials.
Parker Hannifin Corp's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 11.96% of tickers in our DCF set.
PH's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than only 11.96% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
MRCY, SOTK, LDL, RXN, and EME 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.
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CLEVELAND, July 29, 2020 (GLOBE NEWSWIRE) -- Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today announced that it will release its fiscal 2020 fourth quarter and full year earnings before the market opens on Thursday, August 6, 2020, followed by a conference call at 11:00 a.m., Eastern time. During the call, the company will discuss fiscal 2020 fourth quarter and full year results and respond to questions from institutional investors and security analysts. The conference call will be webcast simultaneously on Parker's investor information website at www.phstock.com with an accompanying slide presentation. The webcast will be archived on the site and available for replay later that day.Parker Hannifin is a Fortune 250 global leader i...