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HP Inc. — Intrinsic Value & Fair Price

HPQ
NYSETechnologyComputer HardwareCIK 0000047217www-redirect.ext.hp.comAbout HPQ
Valuation grade ?S
Quant grade ?S
Last close · Oct 30, 202628.78−3.05 (−9.58%)
Model value · DCF · Perpetuity growth · 5y
58.17
HP closed at $28.78 — undervalued by 51% vs model.
47.73the model's range73.65

DCF · Perpetuity growth · 5y leads for a mature, steady company — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
19.01 – 106.93
Wall St. target
32.00 10% below
Below model, 1y
27 of 30 days

How it is valued

Valued asMature & stable
Low/slowing growth (~1% recent)Thin margins (4.6% net margin)Strong dividend yieldHighly cyclical earningsHigh leverage (D/E 5.0x)Strong FCF yield (10.8%)
What growth the price implies: the reverse DCF

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; how each model works is in the manual.