Price to Earnings (P/E)
since 2005
Calculation
Parker-Hannifin Corp., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income attributable to common shareholders1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Aug 24, 2022 | 27.86 | = | 285.40 | ÷ | 10.25 | 10.25 | = | 1,315,605 | ÷ | 128,402,997 | |
| Aug 25, 2021 | 22.44 | = | 303.51 | ÷ | 13.53 | 13.53 | = | 1,746,100 | ÷ | 129,101,437 | |
| Aug 26, 2020 | 22.36 | = | 209.78 | ÷ | 9.38 | 9.38 | = | 1,206,341 | ÷ | 128,561,616 | |
| Aug 23, 2019 | 13.42 | = | 158.03 | ÷ | 11.77 | 11.77 | = | 1,512,364 | ÷ | 128,441,799 | |
| Aug 24, 2018 | 21.40 | = | 171.53 | ÷ | 8.01 | 8.01 | = | 1,060,801 | ÷ | 132,360,024 | |
| Aug 25, 2017 | 21.29 | = | 157.30 | ÷ | 7.39 | 7.39 | = | 983,412 | ÷ | 133,129,936 | |
| Aug 26, 2016 | 20.45 | = | 123.24 | ÷ | 6.03 | 6.03 | = | 806,840 | ÷ | 133,901,044 | |
| Aug 26, 2015 | 14.10 | = | 103.08 | ÷ | 7.31 | 7.31 | = | 1,012,140 | ÷ | 138,418,792 | |
| Aug 22, 2014 | 16.60 | = | 116.15 | ÷ | 7.00 | 7.00 | = | 1,041,048 | ÷ | 148,795,701 | |
| Aug 29, 2013 | 15.85 | = | 100.80 | ÷ | 6.36 | 6.36 | = | 948,427 | ÷ | 149,179,343 | |
| Aug 24, 2012 | 10.58 | = | 81.58 | ÷ | 7.71 | 7.71 | = | 1,151,823 | ÷ | 149,443,661 | |
| Aug 26, 2011 | 10.01 | = | 67.70 | ÷ | 6.77 | 6.77 | = | 1,049,130 | ÷ | 155,061,050 | |
| Aug 26, 2010 | 17.41 | = | 59.85 | ÷ | 3.44 | 3.44 | = | 554,065 | ÷ | 161,176,153 | |
| Aug 27, 2009 | 15.68 | = | 49.68 | ÷ | 3.17 | 3.17 | = | 508,515 | ÷ | 160,517,563 | |
| Aug 28, 2008 | 11.48 | = | 65.01 | ÷ | 5.66 | 5.66 | = | 949,466 | ÷ | 167,629,211 | |
| Aug 29, 2007 | 14.82 | = | 70.60 | ÷ | 4.76 | 4.76 | = | 830,046 | ÷ | 174,253,272 | |
| Sep 6, 2006 | 13.36 | = | 49.88 | ÷ | 3.73 | 3.73 | = | 673,167 | ÷ | 180,324,062 | |
| Sep 2, 2005 | 12.76 | = | 42.97 | ÷ | 3.37 | 3.37 | = | 604,692 | ÷ | 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.
An analysis of the financial metrics from 2005 to 2022 reveals a long-term expansion in the valuation multiple, with the Price to Earnings (P/E) ratio increasing from 12.76 to 27.86. This trajectory indicates a significant shift in market valuation and an increase in the premium attributed to earnings over the 17-year period.
- Early Valuation Phase (2005-2012)
- During this period, the P/E ratio exhibited moderate volatility, fluctuating between a low of 10.01 and a high of 17.41. A notable peak occurred in 2010, which followed a sharp contraction in earnings per share in 2009, suggesting that the share price remained relatively resilient despite a decline in profitability.
- Intermediate Expansion (2013-2018)
- The valuation multiple transitioned to a higher baseline, generally remaining within a range of 14.10 to 21.40. This phase represents a sustained increase in the multiple compared to the 2005-2012 window, peaking in 2018 at 21.40 before experiencing a sharp correction in 2019.
- Recent Valuation Surge (2019-2022)
- Following a drop to 13.42 in 2019, the P/E ratio entered a period of rapid acceleration. The ratio climbed steadily to reach a historical peak of 27.86 by August 2022. This expansion is particularly pronounced as the share price rose significantly from 158.03 in 2019 to 285.40 in 2022, outstripping the growth in earnings per share during the same timeframe.
The overall trend demonstrates that while earnings per share grew from 3.37 to 10.25 over the analyzed period, the market's willingness to pay for those earnings increased at a faster rate, resulting in a more than doubled P/E ratio by the end of the sequence.
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Comparison to Competitors
Parker-Hannifin Corp., P/E, 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 | 27.86 | — | 19.15 | 27.93 | — | 26.97 | 20.48 | 27.59 |
| Aug 25, 2021 | 22.44 | — | 16.82 | 27.77 | — | 23.14 | 16.70 | 36.79 |
| Aug 26, 2020 | 22.36 | — | 36.80 | 37.46 | 19.67 | 29.63 | 13.44 | — |
| Aug 23, 2019 | 13.42 | — | 12.36 | 18.06 | — | 20.97 | 19.87 | 24.41 |
| Aug 24, 2018 | 21.40 | 21.87 | 12.42 | 15.92 | — | 16.02 | 16.88 | 19.74 |
| Aug 25, 2017 | 21.29 | 24.68 | 126.80 | 11.90 | — | 67.20 | 48.70 | 21.97 |
| Aug 26, 2016 | 20.45 | 20.50 | — | 16.96 | 32.22 | 19.29 | 14.14 | 17.55 |
| Aug 26, 2015 | 14.10 | 14.89 | 18.07 | 13.17 | — | 16.70 | 18.36 | 9.31 |
| Aug 22, 2014 | 16.60 | 19.15 | 14.01 | 18.73 | 17.17 | 19.27 | 16.86 | 17.52 |
| Aug 29, 2013 | 15.85 | 21.10 | 16.25 | 19.35 | 19.59 | 18.91 | 17.56 | 17.51 |
| Aug 24, 2012 | 10.58 | 14.71 | 11.02 | 23.99 | 17.57 | 18.78 | 10.34 | 16.07 |
| Aug 26, 2011 | 10.01 | 14.09 | 15.11 | 12.83 | 15.52 | 22.54 | 10.81 | 15.29 |
| Aug 26, 2010 | 17.41 | 16.17 | 24.14 | 19.59 | 19.49 | 22.48 | 9.58 | 17.84 |
| Aug 27, 2009 | 15.68 | 33.40 | 40.66 | 29.60 | 16.09 | 13.44 | 9.56 | 16.33 |
| Aug 28, 2008 | 11.48 | 11.63 | 4.51 | 5.65 | 6.62 | 8.71 | 8.47 | 9.57 |
| Aug 29, 2007 | 14.82 | 15.99 | 12.54 | 11.89 | 15.45 | 17.07 | 14.15 | 16.61 |
| Sep 6, 2006 | 13.36 | 32.40 | 12.28 | 12.47 | 17.11 | 18.37 | 16.95 | 18.16 |
| Sep 2, 2005 | 12.76 | 22.62 | 17.17 | 12.82 | 21.07 | 20.71 | 17.45 | 18.76 |
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/E, long-term trends, comparison to sector (capital goods)
| Parker-Hannifin Corp. | Capital Goods | |
|---|---|---|
| Aug 24, 2022 | 27.86 | 40.21 |
| Aug 25, 2021 | 22.44 | 57.31 |
| Aug 26, 2020 | 22.36 | 123.55 |
| Aug 23, 2019 | 13.42 | 39.03 |
| Aug 24, 2018 | 21.40 | 56.00 |
| Aug 25, 2017 | 21.29 | 55.16 |
| Aug 26, 2016 | 20.45 | 23.62 |
| Aug 26, 2015 | 14.10 | 33.10 |
| Aug 22, 2014 | 16.60 | 17.47 |
| Aug 29, 2013 | 15.85 | 18.85 |
| Aug 24, 2012 | 10.58 | 15.74 |
| Aug 26, 2011 | 10.01 | 15.20 |
| Aug 26, 2010 | 17.41 | 18.46 |
| Aug 27, 2009 | 15.68 | 17.22 |
| Aug 28, 2008 | 11.48 | 7.48 |
| Aug 29, 2007 | 14.82 | 15.28 |
| Sep 6, 2006 | 13.36 | 17.63 |
| Sep 2, 2005 | 12.76 | 20.11 |
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/E, long-term trends, comparison to industry (industrials)
| Parker-Hannifin Corp. | Industrials | |
|---|---|---|
| Aug 24, 2022 | 27.86 | 36.06 |
| Aug 25, 2021 | 22.44 | 35.59 |
| Aug 26, 2020 | 22.36 | — |
| Aug 23, 2019 | 13.42 | 43.95 |
| Aug 24, 2018 | 21.40 | 33.70 |
| Aug 25, 2017 | 21.29 | 29.83 |
| Aug 26, 2016 | 20.45 | 22.92 |
| Aug 26, 2015 | 14.10 | 22.89 |
| Aug 22, 2014 | 16.60 | 18.79 |
| Aug 29, 2013 | 15.85 | 19.13 |
| Aug 24, 2012 | 10.58 | 17.77 |
| Aug 26, 2011 | 10.01 | 15.75 |
| Aug 26, 2010 | 17.41 | 18.72 |
| Aug 27, 2009 | 15.68 | 19.17 |
| Aug 28, 2008 | 11.48 | 9.73 |
| Aug 29, 2007 | 14.82 | 16.93 |
| Sep 6, 2006 | 13.36 | 11.65 |
| Sep 2, 2005 | 12.76 | 50.62 |
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).