PH Announces Acquisition of CIRCOR's Aerospace Business for $2.55B

Research evidence excerpt

PH Announces Acquisition of CIRCOR's Aerospace Business for $2.55B

TD Cowen Parker-Hannifin Corp.

Global Research May 21, 2026

VALUATION METHODOLOGY AND RISKS

Valuation Methodology

Diversified Industrials, Automation & Robotics:

We utilize multiple analysis and discounted cash flow (DCF) analysis to value companies under

coverage. We employ both EV/EBITDA and P/E multiple analysis and look at historical valuation

multiples (typically 5- and 10-year averages) as well as current and historical multiples for

competitor or representative companies. We evaluate the subject company independently and

in terms of its comp group. In certain instances, we may look at current/recent transaction

multiples to evaluate the subject company. When utilizing DCF analysis, we include a sensitivity

table to both discount and terminal growth rates.

We make investment recommendations on certain early stage, pre-revenue companies based

upon an assessment of their business model, technology, probability of market success,

and the potential market opportunity, balanced by an assessment of applicable risks. Such

companies may not be assigned a price target.

Investment Risks

A general decline in the industrial production index, coupled with a global decrease in

automation spending as a percentage of total capex could negatively impact the sector and

the implied industry growth rate as well as leading to additional project delays.

Sustained pressure in emerging markets (especially countries with lower labor wages) could

cause delays in automation implementation in several sectors, including general industrial,

automotive, logistics, medical, and aerospace as factory upgrades are delayed.

Significant, lasting changes in the prices of key commodities, such as oil and natural gas could