Is Parker-Hannifin Corp. overvalued or undervalued?

As of 24 April 2025, the valuation grade for Parker-Hannifin Corp. has moved from expensive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its financial metrics. Key ratios include a P/E ratio of 35, an EV to EBITDA of 26.11, and a ROE of 25.97%.
In comparison to its peers, Parker-Hannifin's P/E ratio of 33.82 is significantly lower than that of GE Aerospace, which is very expensive at 123.69, and Applied Materials, Inc. at 47.71. This suggests that Parker-Hannifin is more attractively priced relative to these companies. Additionally, the company has outperformed the S&P 500 over the past year, with a return of 31.75% compared to the index's 10.26%, reinforcing the notion that it is fairly valued in the current market.