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Parker-Hannifin Corporation (PH) — WACC Analysis

WACC Breakdown

Parker-Hannifin Corporation (PH) has a weighted average cost of capital (WACC) of 9.2%. The cost of equity is 9.4%, derived from a beta of 1.16 and a risk-free rate of 4.7%. The after-tax cost of debt is 4.7%. The capital structure is 94.9% equity and 5.1% debt.

Interpretation

A WACC of 9.2% is moderate, reflecting the market's balanced risk assessment of Parker-Hannifin Corporation.

Investors can compare PH's WACC of 9.2% against industry peers to gauge its relative financing costs. A beta of 1.16 reflects the stock's volatility relative to the broader market.

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VALUATION

PH WACC: 9.17% for Parker-Hannifin Corporation

Current inputs imply a 9.41% cost of equity and a 5.93% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Parker-Hannifin Corporation Common Stock (PH) WACC Results
Weighted Average Cost of Capital
9.17%
Cost of Equity
9.41%
Risk-Free Rate4.73%
Beta1.16
Market Risk Premium4.23%
Cost of Debt
4.68%
Pre-Tax Cost of Debt5.93%
Tax Rate21.00%
Tax Shield1.24%
Capital Structure
Equity: 94.88%($125.42B)
Debt: 5.12%($6766.00M)
Equity Component
8.93%
94.88% × 9.41%
Debt Component
0.24%
5.12% × 4.68%

Parker-Hannifin Corporation (PH) WACC in context

Parker-Hannifin Corporation (PH) currently screens with an estimated WACC of 9.17%. That blends a 9.41% cost of equity, a 5.93% pre-tax cost of debt, and a 94.88% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What PH WACC implies

A 9.17% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates PH

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.16 and equity accounts for 94.88% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.