MeritValue

Parker-Hannifin Corp

PHdata completeness 100%19 fiscal years on file

Data notes: no data for concept 'investmentsAtFairValue'; no data for concept 'netInvestmentIncome'; no data for concept 'realEstateImpairment'

The thesis, from the filings

Parker-Hannifin Corp earns about 11% on invested capital, comfortably above its ~9% cost of capital, with a roughly flat share count — a real edge showing up in the numbers. The estimate methods put fair value between $227.26 and $781.62 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025FY 2026
Revenue$15.9B1$19.1B2$19.9B3$19.9B3$21.5B3
Net income$1.32B4$2.08B4$2.84B4$3.53B5$3.65B5
Operating cash flow$2.44B6$2.98B7$3.38B8$3.78B8$4.36B8
Capital expenditure$230M9$381M10$400M11$435M11$459M11
Free cash flow (derived)$2.21B6$2.6B7$2.98B8$3.34B8$3.91B8
Total debt$23.2B12$27.1B12$11.8B13$9.31B14$9.18B14
Cash & equivalents$535.8M15$475.2M16$422M17$467M18$501M18
Diluted shares130.4M129.9M130.2M130.2M128.1M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$1,202.5
your share of equity
Profit it earned you last year
$284.86
Free cash flow it threw off
$304.84
Debt you’d be carrying
$716.47

10 shares is a claim on $1,202.5 of net worth that earned you $284.86 and generated $304.84 of cash last year, against $716.47 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
11% avg · 5y
FY22 5%FY23 7%FY24 12%FY25 16%FY26 15%

It earned about 11% on invested capital against a ~9% cost of capital — comfortably above the cost of funding, a moderate advantage.

seeing a moat in the numbers →
Management signal · capital allocation
−2% shares · 5y

Share count is roughly flat over 5 years — little dilution, little buyback. Total debt has fallen 61% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.5.0

The 3 estimate methods that apply put fair value between $227.26 and $781.62 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$781.62
assumptions (10)
  • riskFreeRate4.8%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth12.2%
  • fcfBase$3.34B
DCF · Growth Exit 5Y
$545.38
assumptions (10)
  • riskFreeRate4.8%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth12.2%
  • fcfBase$3.34B
Earnings Power Value
$227.26
assumptions (8)
  • riskFreeRate4.8%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$2.84B
  • growthAssumed0.0%
Graham Number
$277.59
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years12.2%
Discount rate (WACC)9.05%
Terminal growth2.5%
At your growth, a share is worth $545.38
The three cases
Bear0.0%$298.37
Base12.2%$545.38
Bull17.2%$680.66

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 12.2%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2022-06-30 · accession 0000076334-24-000044 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2023-06-30 · accession 0000076334-25-000035 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2024-06-30 · accession 0000076334-26-000105 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2022-06-30 · accession 0000076334-24-000044 (NetIncomeLoss)
  5. 10-K · period ending 2025-06-30 · accession 0000076334-26-000105 (ProfitLoss)
  6. 10-K · period ending 2022-06-30 · accession 0000076334-24-000044 (NetCashProvidedByUsedInOperatingActivities)
  7. 10-K · period ending 2023-06-30 · accession 0000076334-25-000035 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2024-06-30 · accession 0000076334-26-000105 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2022-06-30 · accession 0000076334-24-000044 (PaymentsToAcquirePropertyPlantAndEquipment)
  10. 10-K · period ending 2023-06-30 · accession 0000076334-25-000035 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2024-06-30 · accession 0000076334-26-000105 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2022-06-30 · accession 0000076334-23-000042 (LongTermDebtNoncurrent)
  13. 10-K · period ending 2024-06-30 · accession 0000076334-25-000035 (LongTermDebt)
  14. 10-K · period ending 2025-06-30 · accession 0000076334-26-000105 (LongTermDebt)
  15. 10-K · period ending 2022-06-30 · accession 0000076334-23-000042 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2023-06-30 · accession 0000076334-24-000044 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2024-06-30 · accession 0000076334-25-000035 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2025-06-30 · accession 0000076334-26-000105 (CashAndCashEquivalentsAtCarryingValue)