HPQ Valuation

HP Inc

Add to Watchlist

Advanced Chart

25.680

-0.01(-0.039%)1D

Overview
Forecast
Valuation
Earnings

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 7.91 is considered Undervalued compared with the five-year average of 8.45. The fair price of HP Inc (HPQ) is between 44.71 to 50.46 according to relative valuation methord. Compared to the current price of 25.68 USD , HP Inc is Undervalued By 42.57%.

Relative Value

Fair Zone

44.71-50.46

Current Price：25.68

42.57%

Undervalued

7.91

Trailing

Forward

6.75

EV/EBITDA

HP Inc. (HPQ) has a current EV/EBITDA of 6.75. The 5-year average EV/EBITDA is 6.92. The thresholds are as follows: Strongly Undervalued below 5.46, Undervalued between 5.46 and 6.19, Fairly Valued between 7.65 and 6.19, Overvalued between 7.65 and 8.37, and Strongly Overvalued above 8.37. The current Forward EV/EBITDA of 6.75 falls within the Historic Trend Line -Fairly Valued range.

7.86

EV/EBIT

HP Inc. (HPQ) has a current EV/EBIT of 7.86. The 5-year average EV/EBIT is 8.05. The thresholds are as follows: Strongly Undervalued below 6.33, Undervalued between 6.33 and 7.19, Fairly Valued between 8.91 and 7.19, Overvalued between 8.91 and 9.77, and Strongly Overvalued above 9.77. The current Forward EV/EBIT of 7.86 falls within the Historic Trend Line -Fairly Valued range.

0.44

HP Inc. (HPQ) has a current PS of 0.44. The 5-year average PS is 0.55. The thresholds are as follows: Strongly Undervalued below 0.41, Undervalued between 0.41 and 0.48, Fairly Valued between 0.62 and 0.48, Overvalued between 0.62 and 0.69, and Strongly Overvalued above 0.69. The current Forward PS of 0.44 falls within the Undervalued range.

6.13

P/OCF

HP Inc. (HPQ) has a current P/OCF of 6.13. The 5-year average P/OCF is 6.85. The thresholds are as follows: Strongly Undervalued below 4.03, Undervalued between 4.03 and 5.44, Fairly Valued between 8.27 and 5.44, Overvalued between 8.27 and 9.68, and Strongly Overvalued above 9.68. The current Forward P/OCF of 6.13 falls within the Historic Trend Line -Fairly Valued range.

7.77

P/FCF

HP Inc. (HPQ) has a current P/FCF of 7.77. The 5-year average P/FCF is 8.21. The thresholds are as follows: Strongly Undervalued below 4.78, Undervalued between 4.78 and 6.49, Fairly Valued between 9.92 and 6.49, Overvalued between 9.92 and 11.63, and Strongly Overvalued above 11.63. The current Forward P/FCF of 7.77 falls within the Historic Trend Line -Fairly Valued range.

HP Inc (HPQ) has a current Price-to-Book (P/B) ratio of -18.96. Compared to its 3-year average P/B ratio of -18.97 , the current P/B ratio is approximately -0.06% higher. Relative to its 5-year average P/B ratio of -17.24, the current P/B ratio is about 9.96% higher. HP Inc (HPQ) has a Forward Free Cash Flow (FCF) yield of approximately 11.02%. Compared to its 3-year average FCF yield of 10.60%, the current FCF yield is approximately 4.03% lower. Relative to its 5-year average FCF yield of 11.66% , the current FCF yield is about -5.48% lower.

-18.96

P/B

Median3y

-18.97

Median5y

-17.24

11.02

FCF Yield

Median3y

10.60

Median5y

11.66

Competitors Valuation Multiple

The average P/S ratio for HPQ's competitors is 5.92, providing a benchmark for relative valuation. HP Inc Corp (HPQ) exhibits a P/S ratio of 0.44, which is -92.62% above the industry average. Given its robust revenue growth of 3.28%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

SS&C Technologies Holdings Inc

Guidewire Software Inc

Broadridge Financial Solutions Inc

Performance Decomposition

Market capitalization of HPQ decreased by 26.92% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 9.37 to 9.84.

The secondary factor is the Revenue Growth, contributed 3.28%to the performance.

Overall, the performance of HPQ in the past 1 year is driven by P/E Change. Which is more unsustainable.

3.28%

12.80B → 13.22B

Revenue Growth

-35.23%

4.74 → 3.07

Margin Expansion

5.03%

9.37 → 9.84

P/E Change

-26.92%