Parker-Hannifin DCF Stock Analysis

Here’s my assumptions:

Risk Free Rate (10 Years Interest Rate Swap): 3.99%

Risk Premium (Taken from the Aswath Damodaran equity premium spreadsheet): 4.33%

Interest Rate Spread on The Risk free rate ( For the cost of debt calculation): 1%

Historical Data

Revenue growth in the last 10 years (CAGR): 5.74%

Earnings growth in the last 10 years (CAGR): 15.91%

Unlevered Free Cash Flow growth in the last 10 years (CAGR): 8.99%

Future Assumptions

End of Year FCF growth: 4%

Growth until end of 2026: 8%

Growth until end of 2034: 4%

Perpetual growth: 3%

Net Debt: 9.019B

Outstanding Stock Options Present Value Assumption: $1.424B

Restricted Stock Units Present Value Assumption: $0.315B

Stock Valuation based on these assumptions: $878

Last update 09/28/2025

All the content in this newsletter should be taken as informational content only. THIS IS NOT FINANCIAL ADVICE! Do your own Due Diligence before investing or contact a professional financial advisor.

I don’t have a position in Parker-Hannifin (PH) and I don’t plan to add a position in the coming days.