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Parker Hannifin Corp

PHAbove valueExpectations · demanding

Held by 4 superinvestors.

Price$1016.31
Holders4
Total value$15.0M

SEC 10-K · fundamentals

Business quality

as of 2026-06-30
Revenue growth
+8.3%
Net margin
17.0%
ROE
23.7%
FCF margin
18.2%
Revenue $14.35B → $21.50B · 6y
What makes a business high quality

Valuation · value band

Above fair value

$266/ sh · growth-anchored intrinsic value
margin of safety
fair value
above fair value
$1,016
cheaperpricier

Zero-growth floor

$202

Central IV

$266

Optimistic top

$318

Parker Hannifin Corp (PH): A conservative value band $202–$318 / sh (zero-growth floor to growth-capped optimistic top); central read about $266. Today’s price sits above that band (price $1,016 as of 2026-08-25).

The middle figure is the main read. The right end is the optimistic case under the same conservative caps — not an absolute ceiling.

Revenue growth 2% (lower of historical trend and fundamental cap, capped by moat) · moat 10 yr · discount 10.6% · Zero-growth downside $202

Price as of 2026-08-25 · yahoo · DGS10 4.7% @ 2026-08-24.

Method & numbers

A conservative intrinsic-value band (zero-growth floor to growth-capped DCF) plus a tangible asset floor — not investment advice, not a buy/sell signal, and not a price target.

Owner-earnings DCF $196.99 – $318.35 · Greenwald zero-growth $259.20 · zero-growth base $259.20 · reproduction $54.35

Moat Franchise (moat) · terminal value 45% of present value · owner-earnings yield 2% vs 10Y 4.7%.

Graham earnings-power value (normalized NOPAT)$202.17 – $259.20 / sh

Normalized NOPAT = average operating margin over the years shown × latest-year revenue × (1 − normalized tax); then + D&A − maintenance capex (write A). Unlevered (pre-interest, attributable to all capital). Capitalized at the 9–11% rate band (read as a WACC proxy). Enterprise → equity bridge applied: + cash − total debt.

Years: 2025, 2024, 2023, 2022, 2021

v1 simplifications: Maintenance capex (ok) deducted in full cash (write A): EPV = (NOPAT + D&A − maintenance capex) / WACC; no tax shield on the capex term. Share-based compensation is left as a real expense (not added back).

Buffett owner-earnings value$202.61 – $247.64 / sh

Owner earnings = average net income + average D&A − maintenance capex (zero-growth floor; no ΔNWC). Levered (starts from net income, already after interest — an equity-holder stream). Capitalized at the 9–11% rate band (read as a cost-of-equity proxy). No enterprise→equity bridge: the capitalized result is already equity value (subtracting debt would double-count interest).

Years: 2025, 2024, 2023, 2022, 2021

v1 simplifications: Owner earnings = net income + D&A − maintenance capex (ok); the working-capital change is excluded (maintenance ΔNWC ≈ 0; growth ΔNWC is carried in growth value, not double-counted). One-time items are not separately normalized (multi-year averaging smooths them partially). Share-based compensation is left as a real expense (not added back); see the SBC/OE disclosure. Capitalized at the 9–11% band as a cost-of-equity proxy; no leverage premium applied (net cash or debt within the no-charge range).

Reproduction value = tangible net assets $-2.98B + capitalized R&D $752.20M（FY 2025, 2024, 2023, 2022, 2021） = $54.35 / sh. Reproduction value = intangible-inclusive net reproduction (tangible net assets + acquired-intangible reset proxy + capitalized R&D), ÷ diluted shares; tangible net assets alone are negative for this asset-light franchise.

Moat reading: Franchise test compares earnings power (EPV) against reproduction value (tangible net assets + capitalized R&D). EPV well above reproduction value signals a moat; near it, a commodity; below it, value destruction. A directional reading, not a verdict.

Assumes a narrow moat · competitive-advantage period ≈ 10 years.

Growth value not assessable — No positive growth reinvestment in the matured window, so ROIIC cannot be computed.

Window FY 2025, 2024, 2023, 2022, 2021 · discount band 9%–11% · normalized tax 19% (Average effective tax rate over 5 year(s), capped at the statutory 21%.) · diluted shares.

Owner-earnings DCF: growth g₁ 2% · OE FY 2025, 2024, 2023, 2022, 2021 · Discount band: 9.20%–12.00% (DGS10 +4.5% to a 12% strict end, as of 2026-08-24). No enterprise→equity bridge: owner earnings already flow to shareholders (post-interest), so no net cash is added and no debt subtracted — matching the engine owner-earnings lamp.

What the price is betting

Today's price pencils in about 28.0% a year in owner-earnings for the next few years. Revenue actually grew 8.1% a year.

The market wants it well ahead of its own track record.

How to read intrinsic value

SEC 13F · holders

Superinvestors Holding This Security

4 holders · $15.0M combined · this quarter +1 opened / -0 exited

This quarter1 opened1 trimmed
Holders 2 → 4 · last 8q
  • Ray Dalio
    Value$11.8MWeight (prev→now)0.1% → 0.0% ▼
  • Dodge & Cox
    Value$2.4MWeight (prev→now)0.0% → 0.0% ▲
  • Jeremy Grantham
    Value$505,688Weight (prev→now)New · 0.0%
  • Bill Nygren
    Value$288,545Weight (prev→now)0.0% → 0.0% ▲

SEC 13F · notes

Written summary

Parker Hannifin Corp (PH) is held by 4 of the superinvestors tracked on Compounder, with a combined $15.0M in reported 13F value. The largest position belongs to Ray Dalio, where it makes up 0.0% of the portfolio.

Other notable holders by value include Dodge & Cox (0.0% of its book), Jeremy Grantham (0.0% of its book) and Bill Nygren (0.0% of its book).

Over the latest quarter, 1 of the tracked filers opened a new position in PH, 0 added to existing ones, 1 trimmed, and 0 sold out entirely.

Holder counts and values reflect the most recent SEC Form 13F filings, through the quarter ended 2026-06-30. Source: SEC EDGAR. A 13F shows only long US-listed positions and can lag the real portfolio by up to 45 days, so this is disclosed long ownership, not a complete picture.

How to read a 13F

SEC 13F · co-ownership

Also held by these investors

Investors holding Parker Hannifin Corp (PH) also commonly hold →

PH's price is not below its conservative value band. See current strike-zone stocks

Also on

Sources· SEC EDGAR 13F as of 2026-06-30 · filed 2026-08-14

Educational data only — not investment advice. 13F positions are self-reported and can lag up to 45 days.

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