What is Parker-Hannifin Corporation (PH) DCF Fair Value and Intrinsic Value in 2026?

Parker-Hannifin Corporation (PH) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is Parker-Hannifin Corporation's historical Return on Invested Capital (ROIC) and Moat Rating?

Parker-Hannifin Corporation operates in the Industrials sector (Specialty Industrial Machinery) with an economic moat rating of WIDE. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is Parker-Hannifin Corporation's financial health rating and Piotroski F-Score?

Parker-Hannifin Corporation's balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor Parker-Hannifin Corporation (PH) for quarterly SEC filing thesis breaks?

LocalAlpha audits Parker-Hannifin Corporation's 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksPH

PH

Parker-Hannifin CorporationIndustrials / Specialty Industrial MachineryINTACT

Parker-Hannifin Corporation engages in the manufacture and sale of motion and control technologies and systems for aerospace and defense, in-plant and industrial equipment, transportation, off-highway, energy, and HVAC and refrigeration markets in North America, EMEA, Asia Pacific, and Latin America. It operates through two segments: Diversified Industrial and Aerospace Systems. The company offers various motion-control systems and components, such as active and passive vibration control, high purity sealing, coatings, high temperature sealing, cryogenic valves and fittings, HVAC/R controls and monitoring, elastomeric, fabric reinforced, metal, precision cut seals, hydrogen and natural gas filters, electric and hydraulic pumps and motors, industrial air, gas filtration, electric and hydraulic valves, miniature pumps and valves, electromagnetic interface shielding, pneumatic actuators, regulators and valves, electromechanical and hydraulic actuators, power take offs, electronics, drives and controllers, process filtration solutions, engine filtration solutions, rubber to substrate adhesives, fluid condition monitoring, sensors and diagnostics, fluid conveyance hose and tubing, structural adhesives, high pressure connectors, fittings, valves and regulators, thermal management, high purity fittings. The company also provides products for use in commercial and defense airframe and engine programs, such as avionics, electric and hydraulic braking systems, electric power, electromechanical actuators, engine exhaust systems and components, fire detection and suppression, flight control systems, fluid conveyance, fuel systems and components, fuel tank inserting systems, hydraulic pumps and motors, hydraulic valves and actuators, pneumatics, seals, sensors, and thermal management products. The company sells its products to original equipment manufacturers, distributors, direct-sales employees. Parker-Hannifin Corporation was founded in 1917 and is headquartered in Cleveland, Ohio.

Share Price

$950.23

52W: $715.37 - $1099.94

DCF Fair Value

$518.42

-83.3% Premium

Thesis Hub

P/E (TTM)

33.3x

ROIC

17.6%

Operating Margin

23.5%

FCF Yield

2.5%

Debt / Equity

0.57x

Piotroski Score

8/9

Altman Z-Score

3.17

Market Cap

$119.8B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($518.42)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$518.42

MOS Buy Target (-25%)

$388.82

Valuation Overlays: DCF Fair Value ($518.42) 25% MOS Buy Target ($388.82) Revised Graham ($681.86) Graham Number ($279.88)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$950.23

DCF Fair Value

$518.07

-83.4% Premium

Starting Free Cash Flow ($M)$2,962M

$100M$2,962M (Reported)$50,000M

Stage 1 Growth (Years 1-5)11.7%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)$8,200M

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$30.7B

PV of Terminal Value

$42.8B

Implied Enterprise Value

$73.5B

Implied Equity Value

$65.3B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$3,309	$3,696	$4,128	$4,611	$5,151	$5,382	$5,624	$5,878	$6,142	$6,418
Present Value (PV)	$3,035	$3,111	$3,188	$3,267	$3,347	$3,209	$3,077	$2,950	$2,828	$2,711

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-239.5% Premium

$279.88

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $28.50BVPS: $122.16

Revised Graham Formula-39.4% Premium

$681.86

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings2.3% Yield

$22.33 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $2.8BYield: 2.3%

Reverse DCF: Market Growth Expectation

HIGH BARRIER

15.0% CAGR (Next 10 Yrs)

At the current price of $950.23, the market is assuming the business will compound Free Cash Flow at 15.0% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

ℹ Fair expectations: Requires steady execution.

Autonomous Thesis Underwriting

Surveil PH with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Parker-Hannifin Corporation. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 23.5% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: Parker-Hannifin Corporation (PH) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Parker-Hannifin Corporation.

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Parker-Hannifin Corporation has an estimated DCF intrinsic fair value of $518.42 per share compared to its current market price of $950.23. This represents an estimated 83.3% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $279.88.