DCF Tool

PH

Parker-Hannifin Corp. – Other Aircraft Parts and Auxiliary Equipment Manufacturing
Parker Hannifin is a Fortune 250 global leader in motion and control technologies. For more than a century the company has been enabling engineering breakthroughs that lead to a better tomorrow. Parker has increased its annual dividend per share paid to shareholders for 64 consecutive fiscal years, among the top five longest-running dividend-increase records in the S&P 500 index.
Analysis Results
Intrinsic Value $327.89
Latest Price $258.77
Relative Value 21% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 8.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 8.6%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 2.28 2.11
2023 2.48 2.11
2024 2.69 2.12
2025 2.92 2.12
2026 3.17 2.12
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 51.0 billion. This corresponds to a present value of 31.5 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 10.6 billion. Adding in the terminal value gives a total present value of 42.1 billion.

There are presently 128.0 million outstanding shares, so the intrinsic value per share is 327.89.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 5,616,750,000
Current Cash 772,233,000
Current Liabilities 3,096,503,000
Current Debt 2,824,000
Non-Cash Working Capital (NCWC) 1,750,838,000
Change in NCWC -39,203,000
EBIT 2,370,658,000
Tax Provision 500,096,000
Depreciation and Amortization 595,390,000
Capital Expenditure -209,957,000
Unlevered Free Cash Flow 2,189,260,375
Current Assets 4,885,204,000
Current Cash 756,319,000
Current Liabilities 3,148,373,000
Current Debt 809,529,000
Non-Cash Working Capital (NCWC) 1,790,041,000
Change in NCWC 52,412,000
EBIT 1,752,449,000
Tax Provision 305,924,000
Depreciation and Amortization 537,531,000
Capital Expenditure -232,591,000
Unlevered Free Cash Flow 1,755,373,763
Current Assets 7,673,086,000
Current Cash 3,370,698,000
Current Liabilities 3,151,773,000
Current Debt 587,014,000
Non-Cash Working Capital (NCWC) 1,737,629,000
Change in NCWC 66,540,000
EBIT 2,165,901,000
Tax Provision 420,494,000
Depreciation and Amortization 436,189,000
Capital Expenditure -195,089,000
Unlevered Free Cash Flow 2,002,486,588
Current Assets 5,085,238,000
Current Cash 855,132,000
Current Liabilities 3,197,483,000
Current Debt 638,466,000
Non-Cash Working Capital (NCWC) 1,671,089,000
Change in NCWC 202,970,000
EBIT 1,882,399,000
Tax Provision 640,962,000
Depreciation and Amortization 466,085,000
Capital Expenditure -247,667,000
Unlevered Free Cash Flow 1,595,003,278
Current Assets 4,779,718,000
Current Cash 924,204,000
Current Liabilities 3,395,860,000
Current Debt 1,008,465,000
Non-Cash Working Capital (NCWC) 1,468,119,000
Change in NCWC 368,428,000
EBIT 1,428,767,000
Tax Provision 344,797,000
Depreciation and Amortization 355,229,000
Capital Expenditure -203,748,000
Unlevered Free Cash Flow 1,577,895,198
Current Assets 5,207,787,000
Current Cash 2,103,995,000
Current Liabilities 2,365,941,000
Current Debt 361,840,000
Non-Cash Working Capital (NCWC) 1,099,691,000
Change in NCWC -442,339,000
EBIT 1,203,609,000
Tax Provision 307,512,000
Depreciation and Amortization 306,843,000
Capital Expenditure -149,407,000
Unlevered Free Cash Flow 586,675,037
Current Assets 5,583,092,000
Current Cash 1,914,074,000
Current Liabilities 2,350,130,000
Current Debt 223,142,000
Non-Cash Working Capital (NCWC) 1,542,030,000
Change in NCWC 93,880,000
EBIT 1,534,953,000
Tax Provision 419,687,000
Depreciation and Amortization 317,491,000
Capital Expenditure -215,527,000
Unlevered Free Cash Flow 1,281,012,173
Current Assets 6,071,580,000
Current Cash 2,187,256,000
Current Liabilities 3,252,796,000
Current Debt 816,622,000
Non-Cash Working Capital (NCWC) 1,448,150,000
Change in NCWC -115,247,000
EBIT 1,393,752,000
Tax Provision 515,302,000
Depreciation and Amortization 336,702,000
Capital Expenditure -216,340,000
Unlevered Free Cash Flow 937,510,305
Current Assets 5,531,186,000
Current Cash 1,781,412,000
Current Liabilities 3,520,203,000
Current Debt 1,333,826,000
Non-Cash Working Capital (NCWC) 1,563,397,000
Change in NCWC 164,024,000
EBIT 1,374,056,000
Tax Provision 362,217,000
Depreciation and Amortization 335,624,000
Capital Expenditure -265,896,000
Unlevered Free Cash Flow 1,228,169,508
Current Assets 4,498,114,000
Current Cash 838,317,000
Current Liabilities 2,486,013,000
Current Debt 225,589,000
Non-Cash Working Capital (NCWC) 1,399,373,000
Change in NCWC 67,355,000
EBIT 1,668,289,000
Tax Provision 421,206,000
Depreciation and Amortization 321,929,000
Capital Expenditure -218,817,000
Unlevered Free Cash Flow 1,393,081,979

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