We’ve recently updated our valuation analysis.

HP Valuation

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

[object Object] Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

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/Revenue0.7x
Enterprise Value/EBITDA7x
PEG Ratio5.6x

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.
CompanyPEEstimated GrowthMarket Cap
Peer Average16.4x
DELL Dell Technologies
18.1x12.1%US$32.6b
HPE Hewlett Packard Enterprise
24.6x19.9%US$21.4b
NTAP NetApp
9.7x-18.8%US$14.3b
WDC Western Digital
12.3x53.9%US$11.3b
10.7x1.9%US$34.2b

Price-To-Earnings vs Peers: HPQ is good value based on its Price-To-Earnings Ratio (10.7x) compared to the peer average (16.2x).


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/a3.7%
n/an/an/a

Price-To-Earnings vs Industry: HPQ is good value based on its Price-To-Earnings Ratio (10.7x) compared to the Global Tech industry average (13.3x)


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 Ratio10.7x
Fair PE Ratio18x

Price-To-Earnings vs Fair Ratio: HPQ is good value based on its Price-To-Earnings Ratio (10.7x) compared to the estimated Fair Price-To-Earnings Ratio (18x).


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 ($29.64) is trading below our estimate of fair value ($41.71)

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


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$29.64
US$28.97
-2.3%
9.6%US$33.00US$24.00n/a16
Nov ’23US$27.85
US$29.74
+6.8%
8.9%US$33.00US$24.00n/a16
Oct ’23US$24.92
US$30.18
+21.1%
7.3%US$33.00US$25.00n/a16
Sep ’23US$28.17
US$31.29
+11.1%
13.0%US$41.50US$25.00n/a17
Aug ’23US$33.67
US$36.50
+8.4%
14.1%US$50.00US$29.00n/a16
Jul ’23US$31.87
US$37.13
+16.5%
14.6%US$50.00US$29.00n/a16
Jun ’23US$40.34
US$37.00
-8.3%
14.5%US$50.00US$29.00n/a16
May ’23US$36.63
US$37.24
+1.7%
16.1%US$50.00US$29.00n/a17
Apr ’23US$35.60
US$37.18
+4.4%
16.3%US$50.00US$28.00n/a17
Mar ’23US$34.07
US$37.14
+9.0%
15.4%US$50.00US$28.00n/a17
Feb ’23US$37.46
US$36.76
-1.9%
16.2%US$50.00US$26.00n/a17
Jan ’23US$37.67
US$35.94
-4.6%
15.6%US$50.00US$26.00n/a17
Dec ’22US$36.46
US$35.41
-2.9%
15.8%US$50.00US$26.00US$29.8617
Nov ’22US$31.25
US$33.29
+6.5%
18.6%US$50.00US$24.00US$27.8517
Oct ’22US$28.07
US$31.38
+11.8%
15.9%US$40.00US$22.00US$24.9218
Sep ’22US$29.22
US$31.82
+8.9%
15.9%US$40.00US$22.00US$28.1718
Aug ’22US$28.87
US$32.75
+13.4%
18.9%US$40.00US$21.00US$33.6717
Jul ’22US$30.35
US$32.75
+7.9%
18.9%US$40.00US$21.00US$31.8717
Jun ’22US$29.86
US$32.73
+9.6%
18.9%US$40.00US$21.00US$40.3417
May ’22US$34.11
US$30.96
-9.2%
19.1%US$40.00US$19.00US$36.6317
Apr ’22US$32.05
US$30.55
-4.7%
18.0%US$40.00US$19.00US$35.6017
Mar ’22US$29.58
US$30.18
+2.0%
18.0%US$40.00US$19.00US$34.0717
Feb ’22US$24.48
US$24.17
-1.3%
15.4%US$30.00US$14.00US$37.4618
Jan ’22US$24.59
US$23.72
-3.5%
15.4%US$30.00US$14.00US$37.6718
Dec ’21US$22.38
US$23.24
+3.8%
14.1%US$28.00US$14.00US$36.4617

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


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