Parker-Hannifin Corporation

DB:PAR Stock Report

Market Cap: €86.6b

Parker-Hannifin Valuation

Is PAR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of PAR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PAR (€670.4) is trading below our estimate of fair value (€869.47)

Significantly Below Fair Value: PAR is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PAR?

Key metric: As PAR is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for PAR. This is calculated by dividing PAR's market cap by their current earnings.
What is PAR's PE Ratio?
PE Ratio31.4x
EarningsUS$2.89b
Market CapUS$90.67b

Price to Earnings Ratio vs Peers

How does PAR's PE Ratio compare to its peers?

The above table shows the PE ratio for PAR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.8x
RAA RATIONAL
43.4x6.9%€10.2b
G1A GEA Group
18.9x8.3%€7.8b
KRN Krones
14.7x16.2%€3.7b
GIL DMG MORI
22.2xn/a€3.5b
PAR Parker-Hannifin
31.4x8.4%€90.7b

Price-To-Earnings vs Peers: PAR is expensive based on its Price-To-Earnings Ratio (31.4x) compared to the peer average (24.8x).

Price to Earnings Ratio vs Industry

How does PAR's PE Ratio compare vs other companies in the DE Machinery Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
PAR 31.4xIndustry Avg. 14.8xNo. of Companies6PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PAR is expensive based on its Price-To-Earnings Ratio (31.4x) compared to the German Machinery industry average (14.8x).

Price to Earnings Ratio vs Fair Ratio

What is PAR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PAR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio31.4x
Fair PE Ratio22.8x

Price-To-Earnings vs Fair Ratio: PAR is expensive based on its Price-To-Earnings Ratio (31.4x) compared to the estimated Fair Price-To-Earnings Ratio (22.8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst PAR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€670.40
€690.07
+2.9%
11.7%€802.26€436.38n/a20
Nov ’25€588.80
€635.71
+8.0%
12.3%€740.09€422.64n/a18
Oct ’25€564.60
€584.10
+3.5%
10.9%€723.62€402.92n/a18
Sep ’25€537.60
€571.73
+6.3%
12.2%€736.24€398.50n/a17
Aug ’25€491.50
€565.38
+15.0%
12.4%€760.96€398.03n/a19
Jul ’25€478.60
€561.49
+17.3%
10.6%€654.08€402.73n/a20
Jun ’25€484.00
€557.01
+15.1%
10.8%€648.13€399.06n/a19
May ’25€515.00
€540.44
+4.9%
11.3%€634.69€388.64n/a20
Apr ’25€513.60
€512.91
-0.1%
9.2%€573.74€380.97n/a20
Mar ’25€494.00
€516.11
+4.5%
9.4%€579.52€384.81n/a19
Feb ’25€454.40
€461.89
+1.6%
14.6%€576.84€276.00n/a18
Jan ’25€417.60
€431.92
+3.4%
12.6%€503.83€274.32n/a17
Dec ’24€400.00
€416.75
+4.2%
11.2%€486.69€273.42n/a19
Nov ’24€347.90
€420.90
+21.0%
11.1%€504.90€283.65€588.8019
Oct ’24€369.60
€421.80
+14.1%
10.8%€511.27€284.04€564.6020
Sep ’24€383.60
€406.69
+6.0%
11.1%€491.99€273.33€537.6021
Aug ’24€374.20
€374.64
+0.1%
11.3%€495.17€267.18€491.5021
Jul ’24€358.80
€362.82
+1.1%
12.1%€496.85€276.03€478.6021
Jun ’24€302.30
€363.50
+20.2%
12.2%€505.28€280.71€484.0021
May ’24€291.90
€352.19
+20.7%
12.5%€494.05€274.47€515.0020
Apr ’24€306.95
€357.89
+16.6%
12.7%€503.28€279.60€513.6020
Mar ’24€330.25
€358.97
+8.7%
10.9%€456.27€282.81€494.0019
Feb ’24€297.40
€317.75
+6.8%
13.4%€446.73€239.98€454.4019
Jan ’24€271.75
€322.30
+18.6%
13.1%€455.98€244.95€417.6018
Dec ’23€283.75
€322.95
+13.8%
13.3%€459.80€247.00€400.0018
Nov ’23€293.55
€333.30
+13.5%
15.7%€506.45€263.35€347.9018

Analyst Forecast: Target price is less than 20% higher than the current share price.

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