Parker-Hannifin Corp., FCFF calculation

US$ in thousands

12 months ended:	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017
Net income attributable to common shareholders	1,315,605)	1,746,100)	1,206,341)	1,512,364)	1,060,801)	983,412)
Noncontrolling interest in subsidiaries’ earnings	581)	761)	362)	567)	514)	432)
Net noncash charges	382,150)	535,331)	666,043)	580,451)	587,249)	439,829)
Changes in assets and liabilities, net of effects from acquisitions	743,394)	292,809)	198,203)	(363,242)	(48,277)	(121,202)
Net cash provided by operating activities	2,441,730)	2,575,001)	2,070,949)	1,730,140)	1,600,287)	1,302,471)
Cash paid during the year for interest, net of tax¹	195,855)	184,133)	245,943)	132,623)	125,136)	97,633)
Capital expenditures	(230,044)	(209,957)	(232,591)	(195,089)	(247,667)	(203,748)
Proceeds from sale of property, plant and equipment	39,353)	140,590)	26,345)	46,592)	81,881)	14,648)
Free cash flow to the firm (FCFF)	2,446,894)	2,689,767)	2,110,646)	1,714,266)	1,559,637)	1,211,004)

Based on: 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Parker-Hannifin Corp. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Parker-Hannifin Corp. FCFF increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.

Parker-Hannifin Corp., interest paid, net of tax calculation

US$ in thousands

12 months ended:	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017
Effective Income Tax Rate (EITR)
EITR¹	18.50%	22.30%	20.20%	21.70%	37.70%	26.00%
Interest Paid, Net of Tax
Cash paid during the year for interest, before tax	240,313)	236,979)	308,199)	169,378)	200,860)	131,937)
Less: Cash paid during the year for interest, tax²	44,458)	52,846)	62,256)	36,755)	75,724)	34,304)
Cash paid during the year for interest, net of tax	195,855)	184,133)	245,943)	132,623)	125,136)	97,633)

Based on: 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30).

¹ See details »

² 2022 Calculation
Cash paid during the year for interest, tax = Cash paid during the year for interest × EITR
= 240,313 × 18.50% = 44,458

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Parker-Hannifin Corp., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	55,695,791)
Free cash flow to the firm (FCFF)	2,446,894)
Valuation Ratio
EV/FCFF	22.76
Benchmarks
EV/FCFF, Competitors¹
Boeing Co.	19.66
Caterpillar Inc.	18.04
Eaton Corp. plc	47.00
GE Aerospace	38.35
Honeywell International Inc.	33.00
Lockheed Martin Corp.	20.57
RTX Corp.	29.22
EV/FCFF, Sector
Capital Goods	32.33
EV/FCFF, Industry
Industrials	30.22

Based on: 10-K (reporting date: 2022-06-30).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Parker-Hannifin Corp., historical EV/FCFF calculation, comparison to benchmarks

	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017
Selected Financial Data (US$ in thousands)
Enterprise value (EV)¹	47,574,598)	45,011,584)	34,689,668)	24,040,987)	26,811,235)	25,893,192)
Free cash flow to the firm (FCFF)²	2,446,894)	2,689,767)	2,110,646)	1,714,266)	1,559,637)	1,211,004)
Valuation Ratio
EV/FCFF³	19.44	16.73	16.44	14.02	17.19	21.38
Benchmarks
EV/FCFF, Competitors⁴
Boeing Co.	37.53	—	—	—	—	—
Caterpillar Inc.	23.54	20.50	23.83	16.84	—	—
Eaton Corp. plc	33.44	38.16	21.94	15.50	—	—
GE Aerospace	17.29	56.53	32.34	15.85	—	—
Honeywell International Inc.	29.82	25.22	26.49	21.13	—	—
Lockheed Martin Corp.	19.69	13.92	14.64	21.21	—	—
RTX Corp.	28.45	27.29	35.26	21.94	—	—
EV/FCFF, Sector
Capital Goods	25.87	32.16	74.97	24.73	—	—
EV/FCFF, Industry
Industrials	24.88	28.41	72.49	31.28	—	—

Based on: 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30).

¹ See details »

² See details »

³ 2022 Calculation
EV/FCFF = EV ÷ FCFF
= 47,574,598 ÷ 2,446,894 = 19.44

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Parker-Hannifin Corp. EV/FCFF ratio increased from 2020 to 2021 and from 2021 to 2022.

Parker-Hannifin Corp. (NYSE:PH)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical