TacticScaleWhat Parker-Hannifin Does & How It Makes Money (PH)
Updated October 2026 · reflects Parker-Hannifin's latest reported financials
Industrial maker of motion and control components for machines and aircraft. It makes money selling components and systems to original equipment manufacturers, through distributors (including for replacement and aftermarket demand), and through its direct sales force.
How Parker-Hannifin makes money
It makes money selling components and systems to original equipment manufacturers, through distributors (including for replacement and aftermarket demand), and through its direct sales force. Revenue comes from two segments, Diversified Industrial and Aerospace Systems.
What Parker-Hannifin does
Parker-Hannifin, founded in 1917 and headquartered in Cleveland, Ohio, is a large manufacturer of motion and control technologies. Its Diversified Industrial segment sells a very broad range of components, including pumps, motors, valves, actuators, seals, filtration, hoses, fittings, sensors, adhesives and thermal management products. Customers are in in-plant and industrial equipment, transportation, off-highway, energy, and HVAC and refrigeration markets across North America, EMEA, Asia Pacific and Latin America. Its Aerospace Systems segment supplies commercial and defense airframe and engine programs with flight control systems, fuel systems, hydraulic and electric power, braking, fire detection and suppression, avionics and thermal management. Parker sells to OEMs, through distributors and through its direct sales force, so its products end up in a very wide range of industrial and aviation equipment.
Products & services
- Hydraulic and electric pumps, motors and valves
- Seals and precision sealing solutions
- Industrial, process and engine filtration
- Fluid conveyance hose, tubing and fittings
- Electromechanical and pneumatic actuators
- Aircraft flight control, fuel and braking systems
What is Parker-Hannifin worth?
On an owner-earnings DCF, Parker-Hannifin's most-likely value is about $798 versus a recent price near $963 (17% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$315) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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