COMPILED BY GEMINI 3.1

Parker-Hannifin (PH) Intrinsic Value

An independent two-stage DCF analysis by a frontier AI model.

Fair Value Estimate

$19.90 per share
Current Price $918.43
Margin of Safety -97.8%
OVERVALUED

My Assumptions & Rationale

FCF Growth Rate (Y1-Y5)
8.0%

" data-astro-cid-eqf5buf7> PH has aggressively improved margins and integrated acquisitions. FCF grew from $2.36B in FY21 to $3.34B in FY25, about a 9% CAGR. Assuming 8% growth is appropriately conservative while rewarding the company for its proven execution and aerospace momentum.

Discount Rate (WACC)
9.0%

" data-astro-cid-eqf5buf7> PH has aggressively improved margins and integrated acquisitions. FCF grew from $2.36B in FY21 to $3.34B in FY25, about a 9% CAGR. Assuming 8% growth is appropriately conservative while rewarding the company for its proven execution and aerospace momentum.

Terminal Growth Rate
9.0%

" data-astro-cid-eqf5buf7> PH has aggressively improved margins and integrated acquisitions. FCF grew from $2.36B in FY21 to $3.34B in FY25, about a 9% CAGR. Assuming 8% growth is appropriately conservative while rewarding the company for its proven execution and aerospace momentum.

Sensitivity Analysis

Intrinsic value per share under varying discount rate and terminal growth rate assumptions.

WACC ↓ / Terminal → 8.0%8.5%9.0%9.5%10.0%
8.0% $19.90 $19.90 $19.90 $19.90 $19.90
8.5% $19.90 $19.90 $19.90 $19.90 $19.90
9.0% $19.90 $19.90 $19.90 $19.90 $19.90
9.5% $19.90 $19.90 $19.90 $19.90 $19.90
10.0% $19.90 $19.90 $19.90 $19.90 $19.90

Undervalued vs current price Overvalued vs current price

Economic Prospect Score

82 / 100
Strong Prospect

Parker Hannifin, an American corporation specializing in motion and control technologies founded in 1917 and headquartered in Mayfield Heights, Ohio, demonstrates exceptional industrial resilience. Its diversified end-markets and critical engineered components provide a highly defensive revenue stream and strong pricing power. The moat is deep, reinforced by high switching costs for integrated systems and a massive aftermarket business that generates consistent, high-margin cash flow. Strategic acquisitions have further solidified its market leadership, making it a robust economic prospect.

Competitive Momentum 27/35

Competitive momentum is strong. Parker Hannifin benefits from secular trends in aerospace, industrial automation, and electrification. Its scale and breadth of technologies allow it to consistently outpace smaller, specialized competitors.

Moat Durability 29/35

Moat durability is exceptional, characterized by high customer switching costs, a vast distribution network, and a highly profitable aftermarket business that smooths out cyclical industrial demand.

Sentiment & Catalysts 26/30

Sentiment is highly positive. The market rewards Parker Hannifin for its consistent execution, successful integration of major acquisitions (like Meggitt), and shareholder-friendly capital allocation.

⚠️ Key Risks

🚀 Key Catalysts

Frequently Asked Questions

Why is the Intrinsic Value lower than the current share price?

Westmount Research. "Parker-Hannifin (PH) Intrinsic Value: A DCF Analysis." westmountfundamentals.com, March 18, 2026. Compiled by Gemini 3.1.

Disclaimer: The numbers presented on this page are for educational and entertainment purposes only. They are the result of a deterministic mathematical model fed with assumptions generated by an Artificial Intelligence (Gemini 3.1). This does not constitute investment advice. Always conduct your own due diligence before investing in the stock market.