Latest Ratios: P/E Ratio 35.3x · EV/EBITDA 26.2x · ROE 27.4%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $120.9B | $90.9B | $65.9B | $50.6B | $32.1B | $40.2B | $23.8B | $22.4B | $21.1B | $21.7B | $14.8B |
| Enterprise Value | $130.0B | $100.1B | $76.4B | $63.1B | $37.1B | $46.3B | $31.8B | $26.3B | $25.2B | $26.7B | $16.6B |
| P/E Ratio → | 35.31 | 25.75 | 23.16 | 24.32 | 24.39 | 23.00 | 19.73 | 14.81 | 19.90 | 22.04 | 18.34 |
| P/S Ratio | 6.09 | 4.58 | 3.31 | 2.66 | 2.02 | 2.80 | 1.74 | 1.56 | 1.48 | 1.80 | 1.30 |
| P/B Ratio | 9.11 | 6.64 | 5.45 | 4.90 | 3.62 | 4.78 | 3.81 | 3.75 | 3.60 | 4.11 | 3.23 |
| P/FCF | 36.17 | 27.22 | 22.07 | 19.48 | 14.50 | 16.99 | 12.94 | 14.60 | 15.65 | 19.75 | 13.94 |
| P/OCF | 32.01 | 24.08 | 19.47 | 16.99 | 13.14 | 15.60 | 11.49 | 12.95 | 13.22 | 16.66 | 12.22 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.04 | 3.83 | 3.31 | 2.34 | 3.22 | 2.32 | 1.84 | 1.76 | 2.22 | 1.46 |
| EV / EBITDA | 26.18 | 20.16 | 15.83 | 15.63 | 10.97 | 15.43 | 12.60 | 10.27 | 10.18 | 14.76 | 10.35 |
| EV / EBIT | 32.03 | 22.17 | 18.64 | 19.41 | 19.87 | 18.53 | 17.47 | 12.38 | 13.17 | 17.87 | 13.27 |
| EV / FCF | — | 29.97 | 25.61 | 24.29 | 16.79 | 19.56 | 17.30 | 17.13 | 18.71 | 24.30 | 15.65 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 36.9% | 36.9% | 35.9% | 33.9% | 27.7% | 27.2% | 25.4% | 25.5% | 25.3% | 24.0% | 23.2% |
| Operating Margin | 20.5% | 20.5% | 19.6% | 16.9% | 17.7% | 16.7% | 14.5% | 14.8% | 14.1% | 12.1% | 11.4% |
| Net Profit Margin | 17.8% | 17.8% | 14.3% | 10.9% | 8.3% | 12.2% | 8.8% | 10.6% | 7.4% | 8.2% | 7.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 27.4% | 27.4% | 25.4% | 21.7% | 15.2% | 23.8% | 19.7% | 25.6% | 19.1% | 20.0% | 16.7% |
| ROA | 12.0% | 12.0% | 9.6% | 7.5% | 5.7% | 8.7% | 6.4% | 9.2% | 6.9% | 7.1% | 6.6% |
| ROIC | 13.4% | 13.4% | 12.9% | 13.1% | 14.9% | 12.5% | 12.4% | 16.0% | 14.9% | 13.1% | 14.7% |
| ROCE | 17.8% | 17.8% | 17.6% | 15.2% | 15.1% | 14.2% | 12.8% | 16.0% | 16.6% | 13.3% | 13.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.70 | 0.70 | 0.91 | 1.26 | 1.32 | 0.81 | 1.39 | 1.19 | 0.85 | 1.11 | 0.66 |
| Debt / EBITDA | 1.94 | 1.94 | 2.27 | 3.22 | 3.46 | 2.27 | 3.45 | 2.78 | 2.00 | 3.25 | 1.89 |
| Net Debt / Equity | — | 0.67 | 0.87 | 1.21 | 0.57 | 0.72 | 1.28 | 0.65 | 0.70 | 0.95 | 0.40 |
| Net Debt / EBITDA | 1.85 | 1.85 | 2.19 | 3.10 | 1.50 | 2.03 | 3.17 | 1.52 | 1.67 | 2.76 | 1.13 |
| Debt / FCF | — | 2.75 | 3.54 | 4.81 | 2.29 | 2.57 | 4.36 | 2.53 | 3.07 | 4.55 | 1.71 |
| Interest Coverage | 11.04 | 11.04 | 8.10 | 5.67 | 7.32 | 9.99 | 5.91 | 11.17 | 8.96 | 9.18 | 9.17 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.19 | 1.19 | 0.93 | 0.88 | 2.06 | 1.81 | 1.55 | 2.43 | 1.59 | 1.41 | 2.20 |
| Quick Ratio | 0.71 | 0.71 | 0.55 | 0.51 | 1.68 | 1.14 | 0.98 | 1.90 | 1.08 | 0.95 | 1.71 |
| Cash Ratio | 0.08 | 0.08 | 0.06 | 0.06 | 1.14 | 0.25 | 0.24 | 1.07 | 0.27 | 0.27 | 0.89 |
| Asset Turnover | — | 0.67 | 0.68 | 0.64 | 0.61 | 0.71 | 0.69 | 0.81 | 0.93 | 0.78 | 0.94 |
| Inventory Turnover | 4.42 | 4.42 | 4.58 | 4.33 | 5.18 | 5.00 | 5.63 | 6.36 | 6.59 | 5.90 | 7.44 |
| Days Sales Outstanding | — | 62.10 | 61.06 | 62.42 | 67.05 | 64.72 | 56.77 | 62.82 | 63.13 | 66.32 | 58.67 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.7% | 0.9% | 1.2% | 1.4% | 1.8% | 1.2% | 1.9% | 1.8% | 1.7% | 1.6% | 2.3% |
| Payout Ratio | 24.4% | 24.4% | 27.5% | 33.8% | 43.3% | 27.2% | 37.8% | 27.3% | 34.4% | 35.1% | 42.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.8% | 3.9% | 4.3% | 4.1% | 4.1% | 4.3% | 5.1% | 6.8% | 5.0% | 4.5% | 5.5% |
| FCF Yield | 2.8% | 3.7% | 4.5% | 5.1% | 6.9% | 5.9% | 7.7% | 6.9% | 6.4% | 5.1% | 7.2% |
| Buyback Yield | 1.5% | 1.9% | 0.5% | 0.6% | 1.4% | 0.5% | 0.9% | 3.8% | 1.8% | 1.6% | 4.0% |
| Total Shareholder Yield | 2.1% | 2.9% | 1.7% | 2.0% | 3.2% | 1.7% | 2.8% | 5.7% | 3.5% | 3.2% | 6.3% |
| Shares Outstanding | — | $130M | $130M | $130M | $130M | $131M | $130M | $132M | $135M | $136M | $137M |
Acquisition integration execution risk
According to current market data, Parker-Hannifin trades at a P/E of 35.73, which reflects a significant complexity premium compared to historical averages and suggests that investors are pricing in the durability of its aerospace-heavy, recurring revenue model rather than just short-cycle industrial growth.
The forward P/E of 30.98 implies that the market expects sustained earnings expansion, likely driven by the integration of recent large-scale acquisitions. However, the P/FCF of 36.60 indicates that the stock is priced for perfection, leaving little room for error if the company fails to convert its high operating margins into consistent free cash flow.
Based on reported figures, Parker-Hannifin’s ROIC has remained stagnant in the 3.3% to 3.7% range over the last ten quarters, suggesting that the company’s aggressive acquisition strategy is currently diluting the efficiency of its invested capital base despite strong underlying operating margins.
The persistent gap between operating performance and ROIC highlights the heavy burden of intangible assets and goodwill on the balance sheet. Investors should monitor whether management can improve these returns as the integration of recent major deals matures and synergies begin to materialize.
As reported in financial statements, the company’s cash conversion cycle fluctuated between 78 and 91 days over the last ten quarters, indicating that Parker-Hannifin’s working capital efficiency remains sensitive to inventory management challenges inherent in its massive, multi-SKU industrial product catalog.
The DIO consistently above 80 days suggests that the company maintains significant inventory buffers to ensure service levels for its OEM customers. While this supports the 'one-stop-shop' competitive advantage, it also ties up capital that could otherwise be deployed toward debt reduction or shareholder returns.
According to recent quarterly filings, Parker-Hannifin has successfully improved its interest coverage ratio to 11.44x in 2026Q3, signaling that the company is managing its acquisition-related debt burden with increasing comfort despite the volatility observed in its D/EBITDA metrics over the past two years.
The downward trend in the D/E ratio from 1.04 to 0.62 suggests a disciplined approach to balance sheet repair following major capital deployments. However, the reported D/E of 0.70% warrants further investigation, as such a low figure appears inconsistent with the company's historical debt profile and recent acquisition activity.
The P/E ratio is frequently misapplied to Parker-Hannifin because it fails to account for the significant non-cash amortization of intangible assets resulting from the company's serial acquisition strategy, which artificially suppresses reported net income and distorts the true economic earnings power of the business.
Analysts should prioritize EV/EBITDA or cash-flow-based metrics to better assess the company's valuation, as these measures strip away the accounting noise associated with acquisition-related charges. Relying solely on P/E may lead to an inaccurate assessment of the company's growth durability and valuation relative to its industrial peers.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying PH stock.
Parker-Hannifin Corporation's current P/E ratio is 35.3x. The historical average is 18.2x. This places it at the 97th percentile of its historical range.
Parker-Hannifin Corporation's current EV/EBITDA is 26.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.0x.
Parker-Hannifin Corporation's return on equity (ROE) is 27.4%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 18.0%.
Based on historical data, Parker-Hannifin Corporation is trading at a P/E of 35.3x. This is at the 97th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Parker-Hannifin Corporation's current dividend yield is 0.69% with a payout ratio of 24.4%.
Parker-Hannifin Corporation has 36.9% gross margin and 20.5% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Parker-Hannifin Corporation's Debt/EBITDA ratio is 1.9x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.