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Parker HannifinXSWX:PH -0.83%91 Forward Rate of Return (Yacktman) % is 21.90% as of Jun. 2026, which is 39% above its 10-year median of 15.76. GuruFocus rates XSWX:PH with a GF Score™ of 91/100 and a GF Value™ of CHF592.69. The stock has 5 warning signs investors should review. Among 2,149 Industrial Products companies, Parker Hannifin ranks better than 89.76% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Parker Hannifin's forward rate of return for was 21.90%.
The historical rank and industry rank for Parker Hannifin's Forward Rate of Return (Yacktman) % or its related term are showing as below:
XSWX:PH'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 3.95 Med: 15.76 Max: 22.76
Current: 21.73
During the past 13 years, Parker Hannifin's highest Forward Rate of Return was 22.76. The lowest was 3.95. And the median was 15.76.
XSWX:PH's Forward Rate of Return (Yacktman) % is ranked better than 89.76% of 2149
companies
in the Industrial Products industry
Industry Median: 7.36
vs XSWX:PH: 21.73
Unlike the Earnings Yield %, the Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
Parker Hannifin (XSWX:PH) Forward Rate of Return (Yacktman) % Explanation
Unlike the Earnings Yield, the Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over five years. The reason we use five years is to make it comparable to the growth rate.
Be Aware
In the Forward Rate of Return calculation, the growth rate is added directly to today's free cash flow yield. Therefore the calculation is reliable only if the company can grow at the same rate in the future as it did in the past. Investors should pay close attention to this when researching growth stocks. A more accurate measurement for return is Return on Capital.
Parker Hannifin Forward Rate of Return (Yacktman) % Related Terms
Parker Hannifin Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Parker Hannifin's Forward Rate of Return (Yacktman) % 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.
Parker Hannifin Forward Rate of Return (Yacktman) % Chart
XSWX:PH vs ETN, CMI, EMR: Forward Rate of Return (Yacktman) % Comparison
For the Specialty Industrial Machinery subindustry, Parker Hannifin's Forward Rate of Return (Yacktman) %, along with its competitors' market caps and Forward Rate of Return (Yacktman) % 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 Forward Rate of Return (Yacktman) % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Parker Hannifin's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Parker Hannifin's Forward Rate of Return (Yacktman) % falls into.
Parker Hannifin Forward Rate of Return (Yacktman) % Calculation
Forward Rate of Return is a concept that Don Yacktman uses in his investment approach. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. He said in the interview (March 2012, when the S&P 500 was at about 1400):
If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.
The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).
* 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.
What does a Forward Rate of Return (Yacktman) % of 21.90% mean?
Parker Hannifin (XSWX:PH) has a Forward Rate of Return (Yacktman) % of 21.90% as of Jun. 2026. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Parker Hannifin and its competitors. This is 39% above median its historical median of 15.76. Over the past decade, Parker Hannifin's Forward Rate of Return (Yacktman) % has ranged from 3.95 to 22.76. According to the industry distribution chart, Parker Hannifin ranks #220 out of 2149 companies in the Industrial Products industry, placing it in the top 10.2%.
Is Parker Hannifin's Forward Rate of Return (Yacktman) % too high?
Parker Hannifin's current Forward Rate of Return (Yacktman) % of 21.90% is 39% above median its 10-year median of 15.76. Over the past 10 years, this metric has ranged from a low of 3.95 to a high of 22.76. The Industrial Products industry median Forward Rate of Return (Yacktman) % is 7.36. Parker Hannifin's value of 21.90% is 197.6% above this industry median. Based on the distribution chart, Parker Hannifin ranks #220 out of 2149 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Parker Hannifin has a GF Score™ of 91/100, reflecting its overall financial health beyond just this single metric.
How does Parker Hannifin's Forward Rate of Return (Yacktman) % compare to ETN and CMI?
According to the Industrial Products industry distribution chart, Parker Hannifin ranks #220 out of 2149 companies for Forward Rate of Return (Yacktman) %. This places Parker Hannifin in the top 10% of its industry — outperforming the majority of peers. The industry median Forward Rate of Return (Yacktman) % is 7.36. Parker Hannifin's value of 21.90% is 197.6% above this benchmark. Historically, Parker Hannifin's own Forward Rate of Return (Yacktman) % has ranged from 3.95 to 22.76 over the past decade. While the company's 10-year median is 15.76 vs. the industry median of 7.36, Parker Hannifin has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward Rate of Return (Yacktman) % for an Industrial Products company?
The median Forward Rate of Return (Yacktman) % among Industrial Products companies is 7.36, based on 2,149 companies in the industry. Companies in the top quartile (top 25%) have a Forward Rate of Return (Yacktman) % significantly above this median, while those in the bottom quartile fall well below. However, Forward Rate of Return (Yacktman) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Parker Hannifin's current Forward Rate of Return (Yacktman) % of 21.90% is 197.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Forward Rate of Return (Yacktman) % mean?
A high Forward Rate of Return (Yacktman) % can signal that a stock is expensive relative to its fundamentals. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Parker Hannifin and its competitors. For the Industrial Products industry, the median Forward Rate of Return (Yacktman) % is 7.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Parker Hannifin's current Forward Rate of Return (Yacktman) % is 21.90%, which is 39% above median its own 10-year median of 15.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Parker Hannifin stock overvalued right now?
Parker Hannifin (XSWX:PH) has a current Forward Rate of Return (Yacktman) % of 21.90%. The stock's GF Value™ is CHF592.69, compared to a current price of CHF855.70 — trading 44.4% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 21.90%, which is 39% above median its 10-year median of 15.76 and 197.6% above the Industrial Products industry median of 7.36. Parker Hannifin's overall GF Score™ is 91/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward Rate of Return (Yacktman) % calculated?
Forward Rate of Return (Yacktman) % is calculated from a company's financial statements. For Parker Hannifin (XSWX:PH), the current Forward Rate of Return (Yacktman) % is 21.90% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Parker Hannifin (XSWX:PH) Overvalued in 2026?
Based on GuruFocus' analysis, Parker Hannifin stock appears to be overvalued.
The current stock price of CHF855.70 is trading 44.4% above its estimated GF Value™ of CHF592.69.
Key valuation signals for XSWX:PH:
Forward Rate of Return (Yacktman) %: 21.90% (39% above median its 10-year median of 15.76)
GF Value™: CHF592.69 vs. price of CHF855.70 (44.4% above fair value)
Industry Position: 197.6% above the Industrial Products median (#220 of 2149)
No single metric tells the full story. See the XSWX:PH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Parker Hannifin started out in 1917 as Parker Appliance, selling pneumatic brakes. Through the acquisition of branded components, the firm has expanded into aerospace engines, agricultural and construction machinery, freight and passenger vehicles, and industrial automation equipment. Within these larger systems, Parker sells a wide array of small, critical pieces such as hydraulic, electromechanical, climate control, and filtration components. Many of its products are designed to work together, resulting in a high rate of cross-selling.
91GF Score
Get the complete analysis for XSWX:PH
Forward Rate of Return (Yacktman) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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