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Parker-Hannifin Corp (PH) Stock by the Numbers

Thursday, July 15, 2021 11:06 AM | InvestorsObserver Analysts

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Parker-Hannifin Corp (PH) Stock by the Numbers

*InvestorsObserver* gives Parker-Hannifin Corp (PH) a strong valuation score of 72 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. PH currently holds a better value than 72% of stocks based on these metrics. Long term investors focused on buying-and-holding should find the valuation ranking system most relevant when making investment decisions.

Valuation Rank - 72
PH gets a 72 Valuation Rank today. Find out what this means to you and get the rest of the rankings on PH!

Metrics Analysis

PH has a trailing twelve month Price to Earnings ([PE](https://www.investorsobserver.com/learning-center/stock-basics/what-is-a-p-e-ratio)) ratio of 25.9 which places it above the histroical average of roughly 15. PH is currently trading at a poor value due to investors paying more than what the stock is worth in relation to its earnings. PH's trailing-12-month earnings per share (EPS) of 11.75 does not justify its share price in the market. Trailing PE ratios do not factor in the company's projected growth rate, thus, some firms will have high PE ratios caused by high growth recruiting more investors even if the underlying company has produced low earnings so far. PH currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 1.56. The market is currently overvaluing PH in relation to its projected growth due to the PEG ratio being above the fair market value of 1. PH's PEG comes from its forward price to earnings ratio being divided by its growth rate. Because PEG ratios include more fundamentals of a company's overall health with additional focus on the future, they are one of the most used valuation metrics by analysts.

Summary

All together these valuation metrics paint a pretty poor picture for PH at its current price due to a overvalued PEG ratio despite strong growth. The PE and PEG for PH are worse than the average of the market resulting in a valuation score of 72. Click Here to get the full Report on Parker-Hannifin Corp (PH) stock.

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