HPQ Relative Valuation
HPQ's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, HPQ is overvalued; if below, it's undervalued.
Historical Valuation
HP Inc (HPQ) is now in the Undervalued zone, suggesting that its current forward PE ratio of 7.45 is considered Undervalued compared with the five-year average of 8.56. The fair price of HP Inc (HPQ) is between 39.05 to 44.32 according to relative valuation methord. Compared to the current price of 25.21 USD , HP Inc is Undervalued By 35.45%.
Relative Value
Fair Zone
39.05-44.32
Current Price：25.21
35.45%
Undervalued
7.45
PE
1Y
3Y
5Y
Trailing
Forward
6.46
EV/EBITDA
HP Inc. (HPQ) has a current EV/EBITDA of 6.46. The 5-year average EV/EBITDA is 6.96. The thresholds are as follows: Strongly Undervalued below 5.57, Undervalued between 5.57 and 6.27, Fairly Valued between 7.65 and 6.27, Overvalued between 7.65 and 8.34, and Strongly Overvalued above 8.34. The current Forward EV/EBITDA of 6.46 falls within the Historic Trend Line -Fairly Valued range.
7.61
EV/EBIT
HP Inc. (HPQ) has a current EV/EBIT of 7.61. The 5-year average EV/EBIT is 8.09. The thresholds are as follows: Strongly Undervalued below 6.44, Undervalued between 6.44 and 7.27, Fairly Valued between 8.91 and 7.27, Overvalued between 8.91 and 9.74, and Strongly Overvalued above 9.74. The current Forward EV/EBIT of 7.61 falls within the Historic Trend Line -Fairly Valued range.
24.73
PS
HP Inc. (HPQ) has a current PS of 24.73. The 5-year average PS is 0.78. The thresholds are as follows: Strongly Undervalued below -4.13, Undervalued between -4.13 and -1.67, Fairly Valued between 3.24 and -1.67, Overvalued between 3.24 and 5.70, and Strongly Overvalued above 5.70. The current Forward PS of 24.73 falls within the Strongly Overvalued range.
5.86
P/OCF
HP Inc. (HPQ) has a current P/OCF of 5.86. The 5-year average P/OCF is 6.97. The thresholds are as follows: Strongly Undervalued below 4.40, Undervalued between 4.40 and 5.69, Fairly Valued between 8.26 and 5.69, Overvalued between 8.26 and 9.55, and Strongly Overvalued above 9.55. The current Forward P/OCF of 5.86 falls within the Historic Trend Line -Fairly Valued range.
7.27
P/FCF
HP Inc. (HPQ) has a current P/FCF of 7.27. The 5-year average P/FCF is 8.15. The thresholds are as follows: Strongly Undervalued below 4.72, Undervalued between 4.72 and 6.43, Fairly Valued between 9.86 and 6.43, Overvalued between 9.86 and 11.57, and Strongly Overvalued above 11.57. The current Forward P/FCF of 7.27 falls within the Historic Trend Line -Fairly Valued range.
HP Inc (HPQ) has a current Price-to-Book (P/B) ratio of -25.77. Compared to its 3-year average P/B ratio of -20.57 , the current P/B ratio is approximately 25.26% higher. Relative to its 5-year average P/B ratio of -18.10, the current P/B ratio is about 42.37% higher. HP Inc (HPQ) has a Forward Free Cash Flow (FCF) yield of approximately 0.12%. Compared to its 3-year average FCF yield of 10.17%, the current FCF yield is approximately -98.79% lower. Relative to its 5-year average FCF yield of 11.74% , the current FCF yield is about -98.95% lower.
-25.77
P/B
Median3y
-20.57
Median5y
-18.10
0.12
FCF Yield
Median3y
10.17
Median5y
11.74
Competitors Valuation Multiple
The average P/S ratio for HPQ's competitors is 123.08, providing a benchmark for relative valuation. HP Inc Corp (HPQ) exhibits a P/S ratio of 24.73, which is -79.91% above the industry average. Given its robust revenue growth of 3.05%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of HPQ decreased by 27.52% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 4.73 to 5.48.
The secondary factor is the Revenue Growth, contributed 3.05%to the performance.
Overall, the performance of HPQ in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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