Intrinsic value of Parker Hannifin - PH

Previous Close

$167.30

  Intrinsic Value

$463.22

stock screener

  Rating & Target

str. buy

+177%

Previous close

$167.30

 
Intrinsic value

$463.22

 
Up/down potential

+177%

 
Rating

str. buy

We calculate the intrinsic value of PH stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 22.2

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  20.20
  18.68
  17.31
  16.08
  14.97
  13.98
  13.08
  12.27
  11.54
  10.89
  10.30
  9.77
  9.29
  8.86
  8.48
  8.13
  7.82
  7.53
  7.28
  7.05
  6.85
  6.66
  6.50
  6.35
  6.21
  6.09
  5.98
  5.88
  5.80
  5.72
Revenue, $m
  14,459
  17,160
  20,131
  23,368
  26,867
  30,622
  34,627
  38,875
  43,363
  48,084
  53,037
  58,219
  63,629
  69,269
  75,141
  81,249
  87,600
  94,201
  101,060
  108,188
  115,597
  123,299
  131,310
  139,644
  148,320
  157,354
  166,767
  176,580
  186,813
  197,492
Variable operating expenses, $m
  9,094
  10,646
  12,352
  14,212
  16,221
  18,378
  20,678
  23,118
  25,696
  28,408
  30,463
  33,439
  36,547
  39,786
  43,159
  46,668
  50,315
  54,107
  58,046
  62,141
  66,396
  70,820
  75,421
  80,208
  85,191
  90,380
  95,787
  101,423
  107,301
  113,434
Fixed operating expenses, $m
  3,026
  3,093
  3,161
  3,230
  3,301
  3,374
  3,448
  3,524
  3,602
  3,681
  3,762
  3,845
  3,929
  4,016
  4,104
  4,194
  4,287
  4,381
  4,477
  4,576
  4,676
  4,779
  4,884
  4,992
  5,102
  5,214
  5,329
  5,446
  5,566
  5,688
Total operating expenses, $m
  12,120
  13,739
  15,513
  17,442
  19,522
  21,752
  24,126
  26,642
  29,298
  32,089
  34,225
  37,284
  40,476
  43,802
  47,263
  50,862
  54,602
  58,488
  62,523
  66,717
  71,072
  75,599
  80,305
  85,200
  90,293
  95,594
  101,116
  106,869
  112,867
  119,122
Operating income, $m
  2,339
  3,422
  4,618
  5,926
  7,345
  8,870
  10,500
  12,233
  14,065
  15,996
  18,812
  20,935
  23,153
  25,467
  27,878
  30,388
  32,999
  35,714
  38,537
  41,472
  44,525
  47,700
  51,005
  54,444
  58,027
  61,760
  65,652
  69,711
  73,947
  78,369
EBITDA, $m
  3,391
  4,523
  5,773
  7,141
  8,622
  10,216
  11,919
  13,729
  15,643
  17,659
  19,776
  21,993
  24,310
  26,726
  29,244
  31,865
  34,591
  37,426
  40,374
  43,439
  46,626
  49,942
  53,391
  56,983
  60,723
  64,621
  68,683
  72,921
  77,343
  81,959
Interest expense (income), $m
  132
  317
  428
  552
  688
  837
  997
  1,169
  1,353
  1,548
  1,754
  1,970
  2,197
  2,435
  2,683
  2,942
  3,211
  3,491
  3,783
  4,086
  4,400
  4,727
  5,067
  5,420
  5,788
  6,170
  6,568
  6,982
  7,414
  7,864
  8,334
Earnings before tax, $m
  2,022
  2,994
  4,066
  5,238
  6,508
  7,873
  9,331
  10,880
  12,517
  14,242
  16,842
  18,737
  20,718
  22,784
  24,936
  27,176
  29,507
  31,931
  34,451
  37,072
  39,798
  42,633
  45,584
  48,657
  51,857
  55,192
  58,670
  62,297
  66,083
  70,036
Tax expense, $m
  546
  808
  1,098
  1,414
  1,757
  2,126
  2,519
  2,938
  3,380
  3,845
  4,547
  5,059
  5,594
  6,152
  6,733
  7,338
  7,967
  8,621
  9,302
  10,009
  10,745
  11,511
  12,308
  13,137
  14,001
  14,902
  15,841
  16,820
  17,842
  18,910
Net income, $m
  1,476
  2,185
  2,968
  3,824
  4,751
  5,747
  6,812
  7,942
  9,138
  10,397
  12,295
  13,678
  15,124
  16,632
  18,203
  19,839
  21,540
  23,309
  25,149
  27,062
  29,052
  31,122
  33,277
  35,519
  37,856
  40,290
  42,829
  45,477
  48,240
  51,126

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  18,609
  22,085
  25,909
  30,075
  34,578
  39,410
  44,564
  50,033
  55,808
  61,885
  68,259
  74,928
  81,891
  89,149
  96,706
  104,568
  112,742
  121,237
  130,065
  139,238
  148,774
  158,687
  168,996
  179,723
  190,888
  202,515
  214,630
  227,258
  240,429
  254,172
Adjusted assets (=assets-cash), $m
  18,609
  22,085
  25,909
  30,075
  34,578
  39,410
  44,564
  50,033
  55,808
  61,885
  68,259
  74,928
  81,891
  89,149
  96,706
  104,568
  112,742
  121,237
  130,065
  139,238
  148,774
  158,687
  168,996
  179,723
  190,888
  202,515
  214,630
  227,258
  240,429
  254,172
Revenue / Adjusted assets
  0.777
  0.777
  0.777
  0.777
  0.777
  0.777
  0.777
  0.777
  0.777
  0.777
  0.777
  0.777
  0.777
  0.777
  0.777
  0.777
  0.777
  0.777
  0.777
  0.777
  0.777
  0.777
  0.777
  0.777
  0.777
  0.777
  0.777
  0.777
  0.777
  0.777
Average production assets, $m
  5,625
  6,675
  7,831
  9,090
  10,451
  11,912
  13,470
  15,122
  16,868
  18,705
  20,631
  22,647
  24,752
  26,946
  29,230
  31,606
  34,077
  36,644
  39,312
  42,085
  44,967
  47,963
  51,080
  54,322
  57,696
  61,211
  64,873
  68,690
  72,670
  76,824
Working capital, $m
  1,764
  2,094
  2,456
  2,851
  3,278
  3,736
  4,224
  4,743
  5,290
  5,866
  6,471
  7,103
  7,763
  8,451
  9,167
  9,912
  10,687
  11,493
  12,329
  13,199
  14,103
  15,043
  16,020
  17,037
  18,095
  19,197
  20,346
  21,543
  22,791
  24,094
Total debt, $m
  7,924
  10,218
  12,742
  15,492
  18,464
  21,653
  25,055
  28,664
  32,475
  36,486
  40,693
  45,094
  49,690
  54,480
  59,468
  64,657
  70,052
  75,658
  81,485
  87,540
  93,833
  100,375
  107,180
  114,259
  121,628
  129,302
  137,298
  145,633
  154,325
  163,396
Total liabilities, $m
  12,282
  14,576
  17,100
  19,849
  22,821
  26,011
  29,413
  33,021
  36,833
  40,844
  45,051
  49,452
  54,048
  58,838
  63,826
  69,015
  74,410
  80,016
  85,843
  91,897
  98,191
  104,733
  111,537
  118,617
  125,986
  133,660
  141,656
  149,991
  158,683
  167,753
Total equity, $m
  6,327
  7,509
  8,809
  10,225
  11,757
  13,400
  15,152
  17,011
  18,975
  21,041
  23,208
  25,475
  27,843
  30,311
  32,880
  35,553
  38,332
  41,221
  44,222
  47,341
  50,583
  53,953
  57,459
  61,106
  64,902
  68,855
  72,974
  77,268
  81,746
  86,418
Total liabilities and equity, $m
  18,609
  22,085
  25,909
  30,074
  34,578
  39,411
  44,565
  50,032
  55,808
  61,885
  68,259
  74,927
  81,891
  89,149
  96,706
  104,568
  112,742
  121,237
  130,065
  139,238
  148,774
  158,686
  168,996
  179,723
  190,888
  202,515
  214,630
  227,259
  240,429
  254,171
Debt-to-equity ratio
  1.250
  1.360
  1.450
  1.510
  1.570
  1.620
  1.650
  1.680
  1.710
  1.730
  1.750
  1.770
  1.780
  1.800
  1.810
  1.820
  1.830
  1.840
  1.840
  1.850
  1.860
  1.860
  1.870
  1.870
  1.870
  1.880
  1.880
  1.880
  1.890
  1.890
Adjusted equity ratio
  0.340
  0.340
  0.340
  0.340
  0.340
  0.340
  0.340
  0.340
  0.340
  0.340
  0.340
  0.340
  0.340
  0.340
  0.340
  0.340
  0.340
  0.340
  0.340
  0.340
  0.340
  0.340
  0.340
  0.340
  0.340
  0.340
  0.340
  0.340
  0.340
  0.340

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,476
  2,185
  2,968
  3,824
  4,751
  5,747
  6,812
  7,942
  9,138
  10,397
  12,295
  13,678
  15,124
  16,632
  18,203
  19,839
  21,540
  23,309
  25,149
  27,062
  29,052
  31,122
  33,277
  35,519
  37,856
  40,290
  42,829
  45,477
  48,240
  51,126
Depreciation, amort., depletion, $m
  1,052
  1,101
  1,155
  1,214
  1,278
  1,346
  1,419
  1,496
  1,578
  1,663
  964
  1,058
  1,157
  1,259
  1,366
  1,477
  1,592
  1,712
  1,837
  1,967
  2,101
  2,241
  2,387
  2,538
  2,696
  2,860
  3,031
  3,210
  3,396
  3,590
Funds from operations, $m
  2,528
  3,287
  4,124
  5,038
  6,029
  7,093
  8,231
  9,438
  10,715
  12,060
  13,259
  14,737
  16,281
  17,891
  19,569
  21,316
  23,132
  25,022
  26,986
  29,029
  31,154
  33,364
  35,663
  38,058
  40,552
  43,151
  45,860
  48,687
  51,636
  54,716
Change in working capital, $m
  296
  330
  362
  395
  427
  458
  489
  518
  547
  576
  604
  632
  660
  688
  716
  745
  775
  805
  837
  870
  904
  940
  977
  1,017
  1,058
  1,102
  1,148
  1,197
  1,249
  1,303
Cash from operations, $m
  2,232
  2,957
  3,761
  4,643
  5,602
  6,635
  7,742
  8,920
  10,168
  11,484
  12,654
  14,104
  15,621
  17,203
  18,853
  20,570
  22,358
  24,217
  26,150
  28,159
  30,250
  32,424
  34,686
  37,041
  39,493
  42,048
  44,712
  47,490
  50,388
  53,413
Maintenance CAPEX, $m
  -219
  -263
  -312
  -366
  -425
  -488
  -557
  -629
  -707
  -788
  -874
  -964
  -1,058
  -1,157
  -1,259
  -1,366
  -1,477
  -1,592
  -1,712
  -1,837
  -1,967
  -2,101
  -2,241
  -2,387
  -2,538
  -2,696
  -2,860
  -3,031
  -3,210
  -3,396
New CAPEX, $m
  -942
  -1,051
  -1,156
  -1,259
  -1,361
  -1,461
  -1,558
  -1,653
  -1,746
  -1,837
  -1,927
  -2,016
  -2,105
  -2,194
  -2,284
  -2,376
  -2,471
  -2,568
  -2,668
  -2,773
  -2,882
  -2,996
  -3,116
  -3,242
  -3,375
  -3,514
  -3,662
  -3,817
  -3,981
  -4,154
Cash from investing activities, $m
  -1,161
  -1,314
  -1,468
  -1,625
  -1,786
  -1,949
  -2,115
  -2,282
  -2,453
  -2,625
  -2,801
  -2,980
  -3,163
  -3,351
  -3,543
  -3,742
  -3,948
  -4,160
  -4,380
  -4,610
  -4,849
  -5,097
  -5,357
  -5,629
  -5,913
  -6,210
  -6,522
  -6,848
  -7,191
  -7,550
Free cash flow, $m
  1,071
  1,644
  2,294
  3,018
  3,816
  4,686
  5,628
  6,638
  7,716
  8,859
  9,854
  11,125
  12,458
  13,853
  15,309
  16,828
  18,410
  20,057
  21,769
  23,550
  25,401
  27,326
  29,329
  31,412
  33,580
  35,838
  38,190
  40,641
  43,197
  45,864
Issuance/(repayment) of debt, $m
  2,054
  2,294
  2,523
  2,750
  2,972
  3,189
  3,402
  3,609
  3,812
  4,011
  4,207
  4,401
  4,596
  4,791
  4,988
  5,189
  5,395
  5,607
  5,826
  6,055
  6,293
  6,543
  6,804
  7,079
  7,369
  7,674
  7,996
  8,335
  8,693
  9,070
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  2,054
  2,294
  2,523
  2,750
  2,972
  3,189
  3,402
  3,609
  3,812
  4,011
  4,207
  4,401
  4,596
  4,791
  4,988
  5,189
  5,395
  5,607
  5,826
  6,055
  6,293
  6,543
  6,804
  7,079
  7,369
  7,674
  7,996
  8,335
  8,693
  9,070
Total cash flow (excl. dividends), $m
  3,125
  3,938
  4,817
  5,768
  6,788
  7,876
  9,029
  10,247
  11,527
  12,870
  14,061
  15,526
  17,053
  18,643
  20,297
  22,017
  23,805
  25,663
  27,595
  29,604
  31,694
  33,869
  36,133
  38,492
  40,949
  43,512
  46,186
  48,976
  51,890
  54,934
Retained Cash Flow (-), $m
  -1,065
  -1,182
  -1,300
  -1,417
  -1,531
  -1,643
  -1,752
  -1,859
  -1,964
  -2,066
  -2,167
  -2,267
  -2,367
  -2,468
  -2,570
  -2,673
  -2,779
  -2,888
  -3,001
  -3,119
  -3,242
  -3,370
  -3,505
  -3,647
  -3,796
  -3,953
  -4,119
  -4,294
  -4,478
  -4,673
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  2,059
  2,756
  3,517
  4,351
  5,257
  6,233
  7,277
  8,388
  9,564
  10,804
  11,893
  13,259
  14,686
  16,175
  17,728
  19,344
  21,026
  22,775
  24,594
  26,485
  28,452
  30,499
  32,628
  34,845
  37,153
  39,559
  42,067
  44,682
  47,412
  50,261
Discount rate, %
  6.80
  7.14
  7.50
  7.87
  8.27
  8.68
  9.11
  9.57
  10.05
  10.55
  11.08
  11.63
  12.21
  12.82
  13.46
  14.14
  14.84
  15.59
  16.37
  17.18
  18.04
  18.94
  19.89
  20.89
  21.93
  23.03
  24.18
  25.39
  26.66
  27.99
PV of cash for distribution, $m
  1,928
  2,401
  2,831
  3,214
  3,534
  3,783
  3,952
  4,038
  4,041
  3,963
  3,745
  3,541
  3,284
  2,988
  2,666
  2,332
  2,000
  1,680
  1,381
  1,111
  874
  671
  503
  367
  261
  181
  122
  79
  50
  31
Current shareholders' claim on cash, %
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Parker-Hannifin Corporation is a manufacturer of motion and control technologies and systems, providing precision engineered solutions for a range of mobile, industrial and aerospace markets. The Company operates through segments: Diversified Industrial and Aerospace Systems. The Diversified Industrial Segment is an aggregation of several business units, which manufacture motion-control and fluid power system components for builders and users of various types of manufacturing, packaging, processing, transportation, agricultural, construction, and military vehicles and equipment. The Diversified Industrial Segment consists of Automation Group, Engineered Materials Group, Filtration Group, Fluid Connectors Group, Hydraulics Group and Instrumentation Group. The Aerospace Systems Segment produces hydraulic, fuel, pneumatic and electro-mechanical systems and components, which are utilized on domestic commercial, military and general aviation aircrafts.

FINANCIAL RATIOS  of  Parker Hannifin (PH)

Valuation Ratios
P/E Ratio 22.7
Price to Sales 1.9
Price to Book 4.2
Price to Tangible Book
Price to Cash Flow 17.1
Price to Free Cash Flow 20.3
Growth Rates
Sales Growth Rate 5.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 36.9%
Cap. Spend. - 3 Yr. Gr. Rate -1.1%
Financial Strength
Quick Ratio 1
Current Ratio 0
LT Debt to Equity 92.4%
Total Debt to Equity 111.6%
Interest Coverage 11
Management Effectiveness
Return On Assets 7.9%
Ret/ On Assets - 3 Yr. Avg. 7.9%
Return On Total Capital 10.5%
Ret/ On T. Cap. - 3 Yr. Avg. 10.9%
Return On Equity 20%
Return On Equity - 3 Yr. Avg. 18%
Asset Turnover 0.9
Profitability Ratios
Gross Margin 23.9%
Gross Margin - 3 Yr. Avg. 23.7%
EBITDA Margin 15.1%
EBITDA Margin - 3 Yr. Avg. 14.5%
Operating Margin 11%
Oper. Margin - 3 Yr. Avg. 10.7%
Pre-Tax Margin 11%
Pre-Tax Margin - 3 Yr. Avg. 10.7%
Net Profit Margin 8.2%
Net Profit Margin - 3 Yr. Avg. 7.7%
Effective Tax Rate 26%
Eff/ Tax Rate - 3 Yr. Avg. 27.6%
Payout Ratio 35.1%

PH stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the PH stock intrinsic value calculation we used $12029.312 million for the last fiscal year's total revenue generated by Parker Hannifin. The default revenue input number comes from 0001 income statement of Parker Hannifin. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our PH stock valuation model: a) initial revenue growth rate of 20.2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 6.8%, whose default value for PH is calculated based on our internal credit rating of Parker Hannifin, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Parker Hannifin.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of PH stock the variable cost ratio is equal to 64%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $2961 million in the base year in the intrinsic value calculation for PH stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for Parker Hannifin.

Corporate tax rate of 27% is the nominal tax rate for Parker Hannifin. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the PH stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for PH are equal to 38.9%.

Life of production assets of 21.4 years is the average useful life of capital assets used in Parker Hannifin operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for PH is equal to 12.2%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $5261.649 million for Parker Hannifin - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 132.959 million for Parker Hannifin is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Parker Hannifin at the current share price and the inputted number of shares is $22.2 billion.

RELATED COMPANIES Price Int.Val. Rating
HON Honeywell Inte 156.20 242.19  str.buy
CR Crane 88.87 118.05  buy
SNHY Sun Hydraulics 46.21 112.16  str.buy
WWD Woodward 72.20 77.69  hold
IEX IDEX 136.49 177.02  hold
DOV Dover 82.18 97.94  hold

COMPANY NEWS

▶ 5 Stocks for a Red Hot Economy   [Oct-02-18 08:00AM  Investopedia]
▶ 5 Stocks to Buy As Bond Yields Rise   [Sep-21-18 09:59PM  Barrons.com]
▶ Parker Releases New Indego Therapy Exoskeleton   [Sep-20-18 08:30AM  GlobeNewswire]
▶ Parker Declares Quarterly Cash Dividend   [Aug-16-18 05:00PM  GlobeNewswire]
▶ Love Dividends? 3 Stocks You Might Want to Buy   [Aug-04-18 08:30AM  Motley Fool]
▶ Parker-Hannifin: Fiscal 4Q Earnings Snapshot   [Aug-02-18 11:29AM  Associated Press]
▶ Rockwell Automation, Parker Hannifin Slump on Downgrades   [Jul-16-18 10:38AM  Barrons.com]
▶ Parker-Hannifin: Fiscal 3Q Earnings Snapshot   [07:50AM  Associated Press]
▶ Parker Increases Quarterly Cash Dividend   [Apr-19-18 04:10PM  GlobeNewswire]
▶ Cramer Remix: Its not too late to sell and raise cash   [Mar-19-18 07:03PM  CNBC Videos]
▶ Parker-Hannifin's 5-Year Outlook Impresses Analysts   [Mar-08-18 03:52PM  Benzinga]
▶ 3 Top Industrial Machinery Stocks to Buy   [Feb-06-18 08:15AM  Motley Fool]
▶ Parker-Hannifin beats Street 2Q forecasts   [07:49AM  Associated Press]
▶ Parker Declares Quarterly Cash Dividend   [Jan-25-18 05:00PM  GlobeNewswire]
▶ Parker-Hannifin Is Pounding Out Singles   [08:31AM  TheStreet.com]
▶ Composite Rating For Parker-Hannifin Rises To 96   [Dec-14-17 03:00AM  Investor's Business Daily]
▶ 36 Top Funds Just Bought Shares In This Potential Breakout Stock   [Dec-12-17 04:08PM  Investor's Business Daily]
▶ Raise Stops to Lock in Gains on Parker Hannifin   [Dec-05-17 12:42PM  TheStreet.com]
▶ New Strong Buy Stocks for November 30th   [Nov-30-17 08:01AM  Zacks]

CONTACT US       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2018. All rigths reserved.