HP Valuation

Is HPQ undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of HPQ when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HPQ ($37.15) is trading below our estimate of fair value ($52.31)

Significantly Below Fair Value: HPQ is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for HPQ?

Other financial metrics that can be useful for relative valuation.

HPQ key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.8x
Enterprise Value/EBITDA8.7x
PEG Ratio4.5x

Price to Earnings Ratio vs Peers

How does HPQ's PE Ratio compare to its peers?

The above table shows the PE ratio for HPQ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average27.6x
HPE Hewlett Packard Enterprise
14.7x8.0%US$26.6b
NTAP NetApp
26.3x9.7%US$26.0b
DELL Dell Technologies
24.8x13.8%US$89.0b
SMCI Super Micro Computer
44.5x40.2%US$46.7b
12.2x2.7%US$36.4b

Price-To-Earnings vs Peers: HPQ is good value based on its Price-To-Earnings Ratio (12.2x) compared to the peer average (27.6x).


Price to Earnings Ratio vs Industry

How does HPQ's PE Ratio compare vs other companies in the Global Tech Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a7.7%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a7.7%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: HPQ is good value based on its Price-To-Earnings Ratio (12.2x) compared to the Global Tech industry average (23.8x).


Price to Earnings Ratio vs Fair Ratio

What is HPQ's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HPQ PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.2x
Fair PE Ratio23.2x

Price-To-Earnings vs Fair Ratio: HPQ is good value based on its Price-To-Earnings Ratio (12.2x) compared to the estimated Fair Price-To-Earnings Ratio (23.2x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst HPQ forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$37.15
US$34.98
-5.9%
8.8%US$40.00US$30.00n/a16
Jul ’25US$34.97
US$34.98
+0.02%
8.8%US$40.00US$30.00n/a16
Jun ’25US$36.50
US$34.20
-6.3%
9.0%US$40.00US$30.00n/a15
May ’25US$27.75
US$31.78
+14.5%
12.9%US$40.00US$24.00n/a16
Apr ’25US$30.38
US$31.72
+4.4%
13.0%US$40.00US$24.00n/a16
Mar ’25US$29.41
US$31.61
+7.5%
13.1%US$40.00US$24.00n/a16
Feb ’25US$28.94
US$31.54
+9.0%
13.5%US$40.00US$22.00n/a16
Jan ’25US$30.09
US$31.28
+3.9%
13.4%US$40.00US$22.00n/a17
Dec ’24US$29.50
US$30.48
+3.3%
11.3%US$37.00US$22.00n/a16
Nov ’24US$26.48
US$30.61
+15.6%
12.2%US$39.00US$23.00n/a16
Oct ’24US$25.70
US$30.22
+17.6%
13.1%US$39.00US$23.00n/a16
Sep ’24US$30.37
US$30.21
-0.5%
12.7%US$39.00US$23.00n/a17
Aug ’24US$32.95
US$30.79
-6.5%
12.1%US$40.00US$24.00n/a17
Jul ’24US$30.71
US$30.50
-0.7%
10.3%US$37.00US$24.00US$34.9717
Jun ’24US$29.42
US$30.38
+3.2%
10.5%US$37.00US$24.00US$36.5016
May ’24US$29.96
US$29.60
-1.2%
10.2%US$35.00US$24.00US$27.7515
Apr ’24US$29.35
US$29.00
-1.2%
8.8%US$33.00US$24.00US$30.3816
Mar ’24US$28.86
US$29.31
+1.6%
8.4%US$33.00US$24.00US$29.4116
Feb ’24US$29.87
US$28.91
-3.2%
9.6%US$33.00US$24.00US$28.9416
Jan ’24US$26.87
US$28.97
+7.8%
9.6%US$33.00US$24.00US$30.0916
Dec ’23US$29.86
US$28.93
-3.1%
9.4%US$33.00US$24.00US$29.5016
Nov ’23US$27.85
US$29.74
+6.8%
8.9%US$33.00US$24.00US$26.4816
Oct ’23US$24.92
US$30.18
+21.1%
7.3%US$33.00US$25.00US$25.7016
Sep ’23US$28.17
US$31.29
+11.1%
13.0%US$41.50US$25.00US$30.3717
Aug ’23US$33.67
US$36.50
+8.4%
14.1%US$50.00US$29.00US$32.9516
Jul ’23US$31.87
US$37.13
+16.5%
14.6%US$50.00US$29.00US$30.7116

Analyst Forecast: Target price is lower than the current share price.


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