Parker-Hannifin (PH): Revisiting Valuation After a Strong Multi-Year Share Price Run

Parker-Hannifin (PH) has quietly turned into one of the market’s steadier compounders, and the latest leg of its rally has investors asking whether this industrial powerhouse is still reasonably priced.

See our latest analysis for Parker-Hannifin.

At around $887.76, the latest move caps a strong run, with a roughly 19 percent 3 month share price return and a powerful five year total shareholder return above 250 percent, suggesting momentum is still very much intact.

If Parker Hannifin’s climb has you rethinking your watchlist, this is a good moment to explore aerospace and defense stocks that could offer similarly durable growth stories.

With shares hovering near record highs after years of market beating returns, investors now face a key question: is Parker Hannifin still trading below its intrinsic value, or is the market already pricing in its future growth?

Most Popular Narrative: 2% Undervalued

With Parker Hannifin last closing at 887.76 dollars against a narrative fair value of about 907.86 dollars, the valuation case leans slightly in favor of the bulls.

The company's enhanced exposure to aftermarket and longer-cycle revenue streams (anticipated to be 85% of the portfolio by 2029) creates higher quality, more recurring income and reduced cyclicality, which should underpin long-term earnings growth and provide earnings stability during future cycles.

Read the complete narrative.

Want to see the math behind this premium price tag? The narrative leans on steady expansion in sales, margins, and a richer future earnings multiple. Curious which long range assumptions turn a mature industrial into a compounder priced like a growth stock? Dive in to unpack the full set of forecasts driving that fair value line.

Result: Fair Value of $907.86 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, softer industrial demand or setbacks integrating electrification acquisitions like Curtis Instruments could pressure margins and challenge the upbeat long term fair value story.

Find out about the key risks to this Parker-Hannifin narrative.

Another Angle on Valuation

Step away from the narrative fair value and Parker Hannifin starts to look stretched on earnings. At about 30.8 times profits, the stock trades richer than the US Machinery industry on 25.5 times and even above its own 29.7 times fair ratio, hinting at limited margin for error.

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Parker-Hannifin Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a fresh view in just minutes: Do it your way.

A great starting point for your Parker-Hannifin research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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