HPQ Valuation

HP Inc

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27.010

-0.66(-2.385%)1D

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 8.33 is considered Undervalued compared with the five-year average of 8.55. The fair price of HP Inc (HPQ) is between 30.08 to 35.27 according to relative valuation methord. Compared to the current price of 26.95 USD , HP Inc is Undervalued By 10.39%.

Relative Value

Fair Zone

30.08-35.27

Current Price：26.95

10.39%

Undervalued

8.33

Trailing

Forward

6.72

EV/EBITDA

HP Inc. (HPQ) has a current EV/EBITDA of 6.72. The 5-year average EV/EBITDA is 6.94. The thresholds are as follows: Strongly Undervalued below 5.51, Undervalued between 5.51 and 6.23, Fairly Valued between 7.66 and 6.23, Overvalued between 7.66 and 8.37, and Strongly Overvalued above 8.37. The current Forward EV/EBITDA of 6.72 falls within the Historic Trend Line -Fairly Valued range.

7.91

EV/EBIT

HP Inc. (HPQ) has a current EV/EBIT of 7.91. The 5-year average EV/EBIT is 8.07. The thresholds are as follows: Strongly Undervalued below 6.37, Undervalued between 6.37 and 7.22, Fairly Valued between 8.93 and 7.22, Overvalued between 8.93 and 9.78, and Strongly Overvalued above 9.78. The current Forward EV/EBIT of 7.91 falls within the Historic Trend Line -Fairly Valued range.

27.67

HP Inc. (HPQ) has a current PS of 27.67. The 5-year average PS is 0.64. The thresholds are as follows: Strongly Undervalued below -2.46, Undervalued between -2.46 and -0.91, Fairly Valued between 2.19 and -0.91, Overvalued between 2.19 and 3.74, and Strongly Overvalued above 3.74. The current Forward PS of 27.67 falls within the Strongly Overvalued range.

6.17

P/OCF

HP Inc. (HPQ) has a current P/OCF of 6.17. The 5-year average P/OCF is 6.97. The thresholds are as follows: Strongly Undervalued below 4.39, Undervalued between 4.39 and 5.68, Fairly Valued between 8.25 and 5.68, Overvalued between 8.25 and 9.54, and Strongly Overvalued above 9.54. The current Forward P/OCF of 6.17 falls within the Historic Trend Line -Fairly Valued range.

7.66

P/FCF

HP Inc. (HPQ) has a current P/FCF of 7.66. The 5-year average P/FCF is 8.14. The thresholds are as follows: Strongly Undervalued below 4.71, Undervalued between 4.71 and 6.42, Fairly Valued between 9.85 and 6.42, Overvalued between 9.85 and 11.56, and Strongly Overvalued above 11.56. The current Forward P/FCF of 7.66 falls within the Historic Trend Line -Fairly Valued range.

HP Inc (HPQ) has a current Price-to-Book (P/B) ratio of -28.83. Compared to its 3-year average P/B ratio of -20.42 , the current P/B ratio is approximately 41.19% higher. Relative to its 5-year average P/B ratio of -18.01, the current P/B ratio is about 60.08% higher. HP Inc (HPQ) has a Forward Free Cash Flow (FCF) yield of approximately 10.99%. Compared to its 3-year average FCF yield of 10.18%, the current FCF yield is approximately 8.00% lower. Relative to its 5-year average FCF yield of 11.77% , the current FCF yield is about -6.58% lower.

-28.83

P/B

Median3y

-20.42

Median5y

-18.01

10.99

FCF Yield

Median3y

10.18

Median5y

11.77

Competitors Valuation Multiple

The average P/S ratio for HPQ's competitors is 125.18, providing a benchmark for relative valuation. HP Inc Corp (HPQ) exhibits a P/S ratio of 27.67, which is -77.90% 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

Broadridge Financial Solutions Inc

SS&C Technologies Holdings Inc

84.92

6.97%

20.68B

Performance Decomposition

Market capitalization of HPQ decreased by 22.35% 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.

3.05%

13.52B → 13.93B

Revenue Growth

15.86%

4.73 → 5.48

Margin Expansion

-41.26%

17.07 → 10.03

P/E Change

-22.35%