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Parker Hannifin (Parker Hannifin) Intrinsic Value: Projected FCF : $262.07 (As of Apr. 26, 2024)


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What is Parker Hannifin Intrinsic Value: Projected FCF?

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2024-04-26), Parker Hannifin's Intrinsic Value: Projected FCF is $262.07. The stock price of Parker Hannifin is $549.38. Therefore, Parker Hannifin's Price-to-Intrinsic-Value-Projected-FCF of today is 2.1.

The historical rank and industry rank for Parker Hannifin's Intrinsic Value: Projected FCF or its related term are showing as below:

PH' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.84   Med: 1.3   Max: 2.1
Current: 2.1

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Parker Hannifin was 2.10. The lowest was 0.84. And the median was 1.30.

PH's Price-to-Projected-FCF is ranked worse than
63.51% of 1899 companies
in the Industrial Products industry
Industry Median: 1.53 vs PH: 2.10

Parker Hannifin Intrinsic Value: Projected FCF Historical Data

The historical data trend for Parker Hannifin's Intrinsic Value: Projected FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Parker Hannifin Intrinsic Value: Projected FCF Chart

Parker Hannifin Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 143.11 159.31 198.85 200.27 235.69

Parker Hannifin Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Intrinsic Value: Projected FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 206.85 216.70 235.69 245.99 262.07

Competitive Comparison of Parker Hannifin's Intrinsic Value: Projected FCF

For the Specialty Industrial Machinery subindustry, Parker Hannifin's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Parker Hannifin's Price-to-Projected-FCF Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Parker Hannifin's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Parker Hannifin's Price-to-Projected-FCF falls into.



Parker Hannifin Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get Parker Hannifin's Free Cash Flow(6 year avg) = $2,062.01.

Parker Hannifin's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Dec23)*0.8)/Shares Outstanding (Diluted Average)
=(12.184026879804*2062.00976+11302.578*0.8)/130.367
=262.07

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Parker Hannifin  (NYSE:PH) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

Parker Hannifin's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=549.38/262.07280018915
=2.10

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Parker Hannifin Intrinsic Value: Projected FCF Related Terms

Thank you for viewing the detailed overview of Parker Hannifin's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Parker Hannifin (Parker Hannifin) Business Description

Address
6035 Parkland Boulevard, Cleveland, OH, USA, 44124-4141
Parker Hannifin is an industrial conglomerate operating through two segments: diversified industrial, which serves a variety of end markets, and aerospace systems, which sells engine and actuation components. The diversified industrial segment consists of six groups, including engineered materials (sealing devices), filtration (filters and systems monitoring and removing contaminants from liquids and gases), fluid connectors (valves, couplings, and other fittings), instrumentation (flow manufacturing components and fluid control applications), and motion systems (hydraulic, pneumatic, and electromechanical components in industrial machinery and equipment). The segment boasts 17,100 independent distributors, and about 40% of its business occurs outside the United States.
Executives
Joseph R Leonti officer: VP, General Counsel, Secretary 6035 PARKLAND BLVD, CLEVELAND OH 44124
Joseph Scaminace director C/O THE SHERWIN WILLIAMS CO, 101 PROSPECT AVE N W, CLEVELAND OH 44115
Denise R. Fleming director 6035 PARKLAND BOULEVARD, CLEVELAND OH 44124
Todd M. Leombruno officer: VP & Controller C/O PARKER-HANNIFIN CORPORATION, 6035 PARKLAND BOULEVARD, CLEVELAND OH 44124
Linda S Harty director MEDTRONIC PLC, 710 MEDTRONIC PARKWAY NE, LC-150, MINNEAPOLIS MN 55432
Dinu J Parel officer: VP - Chief Information Officer 6035 PARKLAND BOULEVARD, CLEVELAND OH 44124-4141
Robert W Malone officer: VP, President--Filtration Grp 6035 PARKLAND BOULEVARD, CLEVELAND OH 44124
Berend Bracht officer: VP & Pres.-Motion Systems Grp. 6035 PARKLAND BOULEVARD, CLEVELAND OH 44124
Rober S Sherrard officer: VP, PRESIDENT-INSTRUMENTATION 6035 PARKLAND BLVD, C/O PARKER HANNIFIN CORP, CLEVELAND OH 44124
Mark J Hart officer: EVP - HR & External Affairs 6035 PARKLAND BLVD, CLEVELAND OH 44124
Lee C Banks officer: VP, PRESIDENT-INSTRUMENTATION PARKER HANNIFIN CORP, 6035 PARKLAND BLVD, CLEVELAND OH 44124-4141
William R Bowman officer: VP-Pres - Instrumentation Grp 6035 PARKLAND BOULEVARD, CLEVELAND OH 44124
Thomas C Gentile officer: VP-Global Supply Chain C/O PARKER-HANNIFIN CORPORATION, 6035 PARKLAND BOULEVARD, CLEVELAND OH 44124
Andrew D Ross officer: VP and President - Seal Group 6035 PARKLAND BOULEVARD, CLEVELAND OH 44124
Mark T Czaja officer: VP-Chief Technology & Innov. PARKER-HANNIFIN CORPORATION, 6035 PARKLAND BOULEVARD, CLEVELAND OH 44124