Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
Parker-Hannifin Corp., current price multiples
| Parker-Hannifin Corp. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | General Electric Co. | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | Capital Goods | Industrials | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||
| Current share price (P) | $349.02 | ||||||||||||
| No. shares of common stock outstanding | 128,266,030 | ||||||||||||
| Growth rate (g) | 13.10% | ||||||||||||
| Earnings per share (EPS) | $10.26 | ||||||||||||
| Next year expected EPS | $11.60 | ||||||||||||
| Operating profit per share | $22.25 | ||||||||||||
| Sales per share | $123.66 | ||||||||||||
| Book value per share (BVPS) | $68.98 | ||||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||||
| Price to earnings (P/E) | 34.03 | — | 16.87 | 41.03 | 19.05 | 23.71 | 16.16 | 43.35 | 48.82 | 43.35 | |||
| Price to next year expected earnings | 30.09 | — | 13.77 | 38.51 | 18.74 | 20.44 | 10.24 | 42.48 | 49.35 | 41.92 | |||
| Price-earnings-growth (PEG) | 2.60 | — | 0.75 | 6.28 | 11.59 | 1.48 | 0.28 | 21.12 | — | 12.70 | |||
| Price to operating profit (P/OP) | 15.68 | — | 13.44 | 33.98 | 31.93 | 18.93 | 13.15 | 38.90 | 30.59 | 23.88 | |||
| Price to sales (P/S) | 2.82 | 1.46 | 2.73 | 5.69 | 2.71 | 3.66 | 1.66 | 2.01 | 2.54 | 2.16 | |||
| Price to book value (P/BV) | 5.06 | — | 8.94 | 6.94 | 6.39 | 8.46 | 16.37 | 2.32 | 6.44 | 6.61 | |||
Based on: 10-K (reporting date: 2022-06-30).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Parker-Hannifin Corp., historical price multiples
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).
| Valuation ratio | Description | The company |
|---|---|---|
| P/E ratio | The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. | Parker-Hannifin Corp. P/E ratio increased from 2020 to 2021 and from 2021 to 2022. |
| P/OP ratio | Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. | Parker-Hannifin Corp. P/OP ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022. |
| P/S ratio | An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. | Parker-Hannifin Corp. P/S ratio increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level. |
| P/BV ratio | The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. | Parker-Hannifin Corp. P/BV ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022. |
Price to Earnings (P/E)
Parker-Hannifin Corp., historical P/E calculation, comparison to benchmarks
| Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 128,402,997 | 129,101,437 | 128,561,616 | 128,441,799 | 132,360,024 | 133,129,936 | |
| Selected Financial Data (US$) | |||||||
| Net income attributable to common shareholders (in thousands) | 1,315,605) | 1,746,100) | 1,206,341) | 1,512,364) | 1,060,801) | 983,412) | |
| Earnings per share (EPS)2 | 10.25 | 13.53 | 9.38 | 11.77 | 8.01 | 7.39 | |
| Share price1, 3 | 285.40 | 303.51 | 209.78 | 158.03 | 171.53 | 157.30 | |
| Valuation Ratio | |||||||
| P/E ratio4 | 27.86 | 22.44 | 22.36 | 13.42 | 21.40 | 21.29 | |
| Benchmarks | |||||||
| P/E Ratio, Competitors5 | |||||||
| Boeing Co. | — | — | — | — | — | — | |
| Caterpillar Inc. | 19.15 | 16.82 | 36.80 | 12.36 | — | — | |
| Eaton Corp. plc | 27.93 | 27.77 | 37.46 | 18.06 | — | — | |
| General Electric Co. | — | — | 19.67 | — | — | — | |
| Honeywell International Inc. | 26.97 | 23.14 | 29.63 | 20.97 | — | — | |
| Lockheed Martin Corp. | 20.48 | 16.70 | 13.44 | 19.87 | — | — | |
| RTX Corp. | 27.59 | 36.79 | — | 24.41 | — | — | |
| P/E Ratio, Sector | |||||||
| Capital Goods | 40.21 | 57.31 | 123.55 | 39.03 | — | — | |
| P/E Ratio, Industry | |||||||
| Industrials | 36.06 | 35.59 | — | 43.95 | — | — | |
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 Data adjusted for splits and stock dividends.
2 2022 Calculation
EPS = Net income attributable to common shareholders ÷ No. shares of common stock outstanding
= 1,315,605,000 ÷ 128,402,997 = 10.25
3 Closing price as at the filing date of Parker-Hannifin Corp. Annual Report.
4 2022 Calculation
P/E ratio = Share price ÷ EPS
= 285.40 ÷ 10.25 = 27.86
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/E ratio | The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. | Parker-Hannifin Corp. P/E ratio increased from 2020 to 2021 and from 2021 to 2022. |
Price to Operating Profit (P/OP)
Parker-Hannifin Corp., historical P/OP calculation, comparison to benchmarks
| Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 128,402,997 | 129,101,437 | 128,561,616 | 128,441,799 | 132,360,024 | 133,129,936 | |
| Selected Financial Data (US$) | |||||||
| Operating income (in thousands) | 2,854,346) | 2,479,990) | 1,753,676) | 2,062,316) | 1,886,882) | 1,429,676) | |
| Operating profit per share2 | 22.23 | 19.21 | 13.64 | 16.06 | 14.26 | 10.74 | |
| Share price1, 3 | 285.40 | 303.51 | 209.78 | 158.03 | 171.53 | 157.30 | |
| Valuation Ratio | |||||||
| P/OP ratio4 | 12.84 | 15.80 | 15.38 | 9.84 | 12.03 | 14.65 | |
| Benchmarks | |||||||
| P/OP Ratio, Competitors5 | |||||||
| Boeing Co. | — | — | — | — | — | — | |
| Caterpillar Inc. | 16.25 | 15.87 | 24.23 | 9.08 | — | — | |
| Eaton Corp. plc | 22.78 | 19.33 | 25.83 | 13.95 | — | — | |
| General Electric Co. | 19.88 | 17.46 | 25.64 | 9.22 | — | — | |
| Honeywell International Inc. | 20.84 | 20.68 | 24.86 | 18.81 | — | — | |
| Lockheed Martin Corp. | 14.06 | 11.56 | 10.63 | 14.49 | — | — | |
| RTX Corp. | 26.48 | 28.68 | — | 15.07 | — | — | |
| P/OP Ratio, Sector | |||||||
| Capital Goods | 25.20 | 22.96 | 70.31 | 17.55 | — | — | |
| P/OP Ratio, Industry | |||||||
| Industrials | 19.86 | 22.38 | 68.31 | 18.31 | — | — | |
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 Data adjusted for splits and stock dividends.
2 2022 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 2,854,346,000 ÷ 128,402,997 = 22.23
3 Closing price as at the filing date of Parker-Hannifin Corp. Annual Report.
4 2022 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 285.40 ÷ 22.23 = 12.84
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/OP ratio | Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. | Parker-Hannifin Corp. P/OP ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022. |
Price to Sales (P/S)
Parker-Hannifin Corp., historical P/S calculation, comparison to benchmarks
| Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 128,402,997 | 129,101,437 | 128,561,616 | 128,441,799 | 132,360,024 | 133,129,936 | |
| Selected Financial Data (US$) | |||||||
| Net sales (in thousands) | 15,861,608) | 14,347,640) | 13,695,520) | 14,320,324) | 14,302,392) | 12,029,312) | |
| Sales per share2 | 123.53 | 111.13 | 106.53 | 111.49 | 108.06 | 90.36 | |
| Share price1, 3 | 285.40 | 303.51 | 209.78 | 158.03 | 171.53 | 157.30 | |
| Valuation Ratio | |||||||
| P/S ratio4 | 2.31 | 2.73 | 1.97 | 1.42 | 1.59 | 1.74 | |
| Benchmarks | |||||||
| P/S Ratio, Competitors5 | |||||||
| Boeing Co. | 1.90 | 1.87 | 1.96 | 2.34 | — | — | |
| Caterpillar Inc. | 2.27 | 2.26 | 2.83 | 1.48 | — | — | |
| Eaton Corp. plc | 3.31 | 3.03 | 2.96 | 1.87 | — | — | |
| General Electric Co. | 1.20 | 1.50 | 1.41 | 1.18 | — | — | |
| Honeywell International Inc. | 3.78 | 3.73 | 4.34 | 3.51 | — | — | |
| Lockheed Martin Corp. | 1.78 | 1.57 | 1.40 | 2.07 | — | — | |
| RTX Corp. | 2.14 | 2.21 | 1.95 | 1.75 | — | — | |
| P/S Ratio, Sector | |||||||
| Capital Goods | 2.09 | 2.09 | 2.11 | 1.92 | — | — | |
| P/S Ratio, Industry | |||||||
| Industrials | 1.80 | 2.07 | 2.14 | 1.77 | — | — | |
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 Data adjusted for splits and stock dividends.
2 2022 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 15,861,608,000 ÷ 128,402,997 = 123.53
3 Closing price as at the filing date of Parker-Hannifin Corp. Annual Report.
4 2022 Calculation
P/S ratio = Share price ÷ Sales per share
= 285.40 ÷ 123.53 = 2.31
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/S ratio | An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. | Parker-Hannifin Corp. P/S ratio increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level. |
Price to Book Value (P/BV)
Parker-Hannifin Corp., historical P/BV calculation, comparison to benchmarks
| Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 128,402,997 | 129,101,437 | 128,561,616 | 128,441,799 | 132,360,024 | 133,129,936 | |
| Selected Financial Data (US$) | |||||||
| Shareholders’ equity (in thousands) | 8,848,011) | 8,398,307) | 6,113,983) | 5,961,969) | 5,859,866) | 5,261,649) | |
| Book value per share (BVPS)2 | 68.91 | 65.05 | 47.56 | 46.42 | 44.27 | 39.52 | |
| Share price1, 3 | 285.40 | 303.51 | 209.78 | 158.03 | 171.53 | 157.30 | |
| Valuation Ratio | |||||||
| P/BV ratio4 | 4.14 | 4.67 | 4.41 | 3.40 | 3.87 | 3.98 | |
| Benchmarks | |||||||
| P/BV Ratio, Competitors5 | |||||||
| Boeing Co. | — | — | — | — | — | — | |
| Caterpillar Inc. | 8.09 | 6.62 | 7.20 | 5.16 | — | — | |
| Eaton Corp. plc | 4.04 | 3.63 | 3.54 | 2.48 | — | — | |
| General Electric Co. | 2.43 | 2.64 | 2.89 | 3.66 | — | — | |
| Honeywell International Inc. | 8.02 | 6.91 | 8.07 | 6.97 | — | — | |
| Lockheed Martin Corp. | 12.67 | 9.62 | 15.27 | 39.60 | — | — | |
| RTX Corp. | 1.97 | 1.95 | 1.53 | 3.24 | — | — | |
| P/BV Ratio, Sector | |||||||
| Capital Goods | 5.31 | 4.77 | 5.05 | 6.91 | — | — | |
| P/BV Ratio, Industry | |||||||
| Industrials | 5.50 | 5.44 | 5.89 | 6.28 | — | — | |
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 Data adjusted for splits and stock dividends.
2 2022 Calculation
BVPS = Shareholders’ equity ÷ No. shares of common stock outstanding
= 8,848,011,000 ÷ 128,402,997 = 68.91
3 Closing price as at the filing date of Parker-Hannifin Corp. Annual Report.
4 2022 Calculation
P/BV ratio = Share price ÷ BVPS
= 285.40 ÷ 68.91 = 4.14
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/BV ratio | The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. | Parker-Hannifin Corp. P/BV ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022. |