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:
Below please find a table outlining a discounted cash flow forecast for PH, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Parker Hannifin Corp ranked in the 47th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Parker Hannifin Corp, consider:
Interest coverage, a measure of earnings relative to interest payments, is 5.91; that's higher than 60.48% of US stocks in the Industrials sector that have positive free cash flow.
Parker Hannifin Corp's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 19.74% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as PH, try AOS, NSC, ODFL, HII, and SOTK.