Price to Book Value (P/BV)
since 2005
Calculation
Parker-Hannifin Corp., P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Shareholders’ equity1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Aug 24, 2022 | 4.14 | = | 285.40 | ÷ | 68.91 | 68.91 | = | 8,848,011 | ÷ | 128,402,997 | |
| Aug 25, 2021 | 4.67 | = | 303.51 | ÷ | 65.05 | 65.05 | = | 8,398,307 | ÷ | 129,101,437 | |
| Aug 26, 2020 | 4.41 | = | 209.78 | ÷ | 47.56 | 47.56 | = | 6,113,983 | ÷ | 128,561,616 | |
| Aug 23, 2019 | 3.40 | = | 158.03 | ÷ | 46.42 | 46.42 | = | 5,961,969 | ÷ | 128,441,799 | |
| Aug 24, 2018 | 3.87 | = | 171.53 | ÷ | 44.27 | 44.27 | = | 5,859,866 | ÷ | 132,360,024 | |
| Aug 25, 2017 | 3.98 | = | 157.30 | ÷ | 39.52 | 39.52 | = | 5,261,649 | ÷ | 133,129,936 | |
| Aug 26, 2016 | 3.61 | = | 123.24 | ÷ | 34.17 | 34.17 | = | 4,575,255 | ÷ | 133,901,044 | |
| Aug 26, 2015 | 2.80 | = | 103.08 | ÷ | 36.88 | 36.88 | = | 5,104,287 | ÷ | 138,418,792 | |
| Aug 22, 2014 | 2.60 | = | 116.15 | ÷ | 44.76 | 44.76 | = | 6,659,428 | ÷ | 148,795,701 | |
| Aug 29, 2013 | 2.62 | = | 100.80 | ÷ | 38.47 | 38.47 | = | 5,738,426 | ÷ | 149,179,343 | |
| Aug 24, 2012 | 2.49 | = | 81.58 | ÷ | 32.76 | 32.76 | = | 4,896,515 | ÷ | 149,443,661 | |
| Aug 26, 2011 | 1.95 | = | 67.70 | ÷ | 34.72 | 34.72 | = | 5,383,854 | ÷ | 155,061,050 | |
| Aug 26, 2010 | 2.21 | = | 59.85 | ÷ | 27.10 | 27.10 | = | 4,367,965 | ÷ | 161,176,153 | |
| Aug 27, 2009 | 1.86 | = | 49.68 | ÷ | 26.66 | 26.66 | = | 4,279,625 | ÷ | 160,517,563 | |
| Aug 28, 2008 | 2.07 | = | 65.01 | ÷ | 31.37 | 31.37 | = | 5,258,971 | ÷ | 167,629,211 | |
| Aug 29, 2007 | 2.61 | = | 70.60 | ÷ | 27.04 | 27.04 | = | 4,711,665 | ÷ | 174,253,272 | |
| Sep 6, 2006 | 2.12 | = | 49.88 | ÷ | 23.52 | 23.52 | = | 4,241,203 | ÷ | 180,324,062 | |
| Sep 2, 2005 | 2.31 | = | 42.97 | ÷ | 18.60 | 18.60 | = | 3,340,147 | ÷ | 179,530,578 |
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), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Parker-Hannifin Corp. Annual Report.
The financial trajectory between 2005 and 2022 is characterized by a significant expansion in market valuation relative to book value. While both share price and book value per share exhibited overall growth, the appreciation of the share price substantially outpaced the growth of the underlying book value, resulting in a progressive increase in the Price to Book Value (P/BV) ratio.
- Share Price Dynamics
- The share price demonstrated a strong long-term upward trend, rising from 42.97 in 2005 to a peak of 303.51 in 2021, before concluding the period at 285.40 in 2022. This growth reflects a substantial increase in market capitalization over the seventeen-year duration.
- Book Value per Share (BVPS) Progression
- BVPS increased from 18.60 in 2005 to 68.91 in 2022. Despite the general upward trajectory, the growth was not linear; contractions were observed in 2009 and again between 2015 and 2016, suggesting periods of equity reduction or aggressive share repurchase programs.
- P/BV Ratio Trends
- The P/BV ratio evolved through three distinct phases. From 2005 to 2011, the ratio remained relatively stable, fluctuating within a range of 1.86 to 2.61. A moderate transition occurred between 2012 and 2015, with the ratio climbing from 2.49 to 2.80. A significant valuation shift began in 2016, where the ratio jumped to 3.61 and continued to climb, reaching a peak of 4.67 in 2021 before settling at 4.14 in 2022.
- Market Valuation Insights
- The widening divergence between the market price and the book value indicates a fundamental re-rating of the company's valuation. The shift from a historical average near 2.0 to a recent range above 4.0 suggests that the market began attributing significantly higher value to the company's intangible assets, future growth prospects, or return on equity than in previous decades.
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Comparison to Competitors
Parker-Hannifin Corp., P/BV, long-term trends, comparison to competitors
| Parker-Hannifin Corp. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Aug 24, 2022 | 4.14 | — | 8.09 | 4.04 | 2.43 | 8.02 | 12.67 | 1.97 |
| Aug 25, 2021 | 4.67 | — | 6.62 | 3.63 | 2.64 | 6.91 | 9.62 | 1.95 |
| Aug 26, 2020 | 4.41 | — | 7.20 | 3.54 | 2.89 | 8.07 | 15.27 | 1.53 |
| Aug 23, 2019 | 3.40 | — | 5.16 | 2.48 | 3.66 | 6.97 | 39.60 | 3.24 |
| Aug 24, 2018 | 3.87 | 674.83 | 5.44 | 2.12 | 3.00 | 5.96 | 61.11 | 2.71 |
| Aug 25, 2017 | 3.98 | 569.92 | 6.98 | 2.06 | 1.96 | 6.44 | — | 3.38 |
| Aug 26, 2016 | 3.61 | 122.80 | 4.42 | 2.19 | 3.47 | 4.79 | 49.61 | 3.22 |
| Aug 26, 2015 | 2.80 | 12.17 | 2.56 | 1.72 | 2.79 | 4.35 | 21.37 | 2.59 |
| Aug 22, 2014 | 2.60 | 12.04 | 3.09 | 2.13 | 2.04 | 4.63 | 17.92 | 3.49 |
| Aug 29, 2013 | 2.62 | 6.50 | 2.96 | 2.15 | 1.96 | 4.25 | 10.65 | 3.14 |
| Aug 24, 2012 | 2.49 | 9.78 | 3.57 | 1.94 | 1.95 | 4.24 | 727.88 | 3.18 |
| Aug 26, 2011 | 1.95 | 16.10 | 5.78 | 2.32 | 1.75 | 4.31 | 28.67 | 3.48 |
| Aug 26, 2010 | 2.21 | 19.33 | 6.02 | 2.47 | 1.86 | 4.26 | 7.56 | 3.65 |
| Aug 27, 2009 | 1.86 | 20.59 | 4.16 | 1.67 | 1.47 | 3.27 | 7.00 | 3.12 |
| Aug 28, 2008 | 2.07 | — | 2.63 | 0.95 | 1.10 | 3.38 | 9.51 | 2.82 |
| Aug 29, 2007 | 2.61 | 7.24 | 5.00 | 2.28 | 2.97 | 4.52 | 4.38 | 3.28 |
| Sep 6, 2006 | 2.12 | 15.15 | 6.33 | 2.88 | 3.17 | 3.94 | 6.23 | 3.92 |
| Sep 2, 2005 | 2.31 | 5.26 | 5.81 | 2.73 | 3.15 | 3.05 | 4.05 | 3.39 |
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), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).
Comparison to Sector (Capital Goods)
Parker-Hannifin Corp., P/BV, long-term trends, comparison to sector (capital goods)
| Parker-Hannifin Corp. | Capital Goods | |
|---|---|---|
| Aug 24, 2022 | 4.14 | 5.31 |
| Aug 25, 2021 | 4.67 | 4.77 |
| Aug 26, 2020 | 4.41 | 5.05 |
| Aug 23, 2019 | 3.40 | 6.91 |
| Aug 24, 2018 | 3.87 | 6.11 |
| Aug 25, 2017 | 3.98 | 5.42 |
| Aug 26, 2016 | 3.61 | 4.64 |
| Aug 26, 2015 | 2.80 | 3.45 |
| Aug 22, 2014 | 2.60 | 3.17 |
| Aug 29, 2013 | 2.62 | 2.85 |
| Aug 24, 2012 | 2.49 | 2.77 |
| Aug 26, 2011 | 1.95 | 2.89 |
| Aug 26, 2010 | 2.21 | 2.90 |
| Aug 27, 2009 | 1.86 | 2.29 |
| Aug 28, 2008 | 2.07 | 1.86 |
| Aug 29, 2007 | 2.61 | 3.46 |
| Sep 6, 2006 | 2.12 | 3.91 |
| Sep 2, 2005 | 2.31 | 3.47 |
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), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).
Comparison to Industry (Industrials)
Parker-Hannifin Corp., P/BV, long-term trends, comparison to industry (industrials)
| Parker-Hannifin Corp. | Industrials | |
|---|---|---|
| Aug 24, 2022 | 4.14 | 5.50 |
| Aug 25, 2021 | 4.67 | 5.44 |
| Aug 26, 2020 | 4.41 | 5.89 |
| Aug 23, 2019 | 3.40 | 6.28 |
| Aug 24, 2018 | 3.87 | 5.96 |
| Aug 25, 2017 | 3.98 | 5.37 |
| Aug 26, 2016 | 3.61 | 4.89 |
| Aug 26, 2015 | 2.80 | 3.68 |
| Aug 22, 2014 | 2.60 | 3.70 |
| Aug 29, 2013 | 2.62 | 3.14 |
| Aug 24, 2012 | 2.49 | 3.06 |
| Aug 26, 2011 | 1.95 | 3.09 |
| Aug 26, 2010 | 2.21 | 3.05 |
| Aug 27, 2009 | 1.86 | 2.43 |
| Aug 28, 2008 | 2.07 | 2.01 |
| Aug 29, 2007 | 2.61 | 3.45 |
| Sep 6, 2006 | 2.12 | 3.75 |
| Sep 2, 2005 | 2.31 | 3.95 |
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), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).