Overview
Discounted cash flow
Income / accounting-based
Multiples & assets
Scenario
Toolbox
Weighted blend
$112.92
+317.60% vs spot
Strong Buy
Spot price
$27.04
Mkt cap $24.73B
subtle cardAnalyst PT consensus
$19.80
-26.78% vs spot
subtle cardMethods covered
16 / 18
10 in blend
subtle cardFootball field
HPQ · fair-value range by method
Method comparison
HPQ · fair value by valuation framework
| Method | Category | Fair value | Range | vs spot | Weight | Driver | Conf. |
|---|---|---|---|---|---|---|---|
| DCF · FCFF | dcf | $172.84 | $107.66 – $348.21 | +539.21% | 28.2% | WACC 4.4%, g₀=4.1%, gₗ=2.0% | high |
| DCF · FCFE | dcf | $49.20 | $39.80 – $64.53 | +81.94% | 23.1% | kₑ 9.4%, g₀=4.1%, gₗ=2.0% | high |
| DDM · Gordon | ddm | $21.20 | $18.68 – $24.51 | -21.59% | — | D₁ 1.54, kₑ 9.4%, gₗ 2.0% | med |
| DDM · H-model | ddm | $23.36 | $18.68 – $30.62 | -13.60% | — | D₀ 1.54, g₀=4.1%, gₗ=2.0%, H 5y | med |
| DDM · multi-stage | ddm | $22.23 | $18.89 – $25.56 | -17.79% | 5.1% | 5y schedule 4.1% → 2.0%, kₑ 9.4% | high |
| Justified P/E | multiple | $22.30 | $18.95 – $25.64 | -17.54% | 7.7% | Fair P/E 8.4 (payout 43%, kₑ 9.4%, g 4.1%) | low |
| P/E · sector | multiple | $74.20 | $65.30 – $83.10 | +174.41% | 12.8% | EPS 2.65 × peer P/E 28.0 | med |
| P/S · sector | multiple | $469.16 | $398.78 – $539.53 | +1635.05% | — | Rev/sh 78.19 × peer P/S 6.00 | med |
| EV / EBITDA | multiple | $105.50 | $92.84 – $118.16 | +290.18% | 12.8% | EBITDA × peer 20.0× − ND 7.2B | high |
| EV / EBIT | multiple | $112.82 | $95.90 – $129.75 | +317.25% | — | EBIT × peer 24.0× − ND | med |
| EV / Sales | multiple | $388.61 | $330.32 – $446.91 | +1337.18% | 6.4% | Sales × peer 5.10× − ND | med |
| PEG-anchored | multiple | $35.84 | $30.46 – $41.21 | +32.54% | — | PEG=1, fwd EPS g 13.5% | med |
| Earnings power | intrinsic | $100.04 | $88.04 – $112.05 | +269.98% | 1.3% | NOPAT / WACC, no growth | med |
| Graham revised | intrinsic | $43.55 | $37.02 – $50.09 | +61.07% | 1.3% | EPS×(8.5+2g)·4.4/Y | low |
| Lynch P/E=g | intrinsic | $13.25 | $11.26 – $15.24 | -51.00% | 1.3% | PE = g (4.1) | low |
| Book NAV | asset | -$0.49 | -$0.46 – -$0.51 | -101.81% | — | (Assets − Liabilities) / Shares | high |
| Liquidation | asset | — | — | — | — | Cash 100% + non-cash 70% − Liab. | low |
| Reverse DCF | reverse | — | — | — | — | Implied g -20.0% · Pessimistic — market pricing decline | high |
Cost-of-capital build-up
CAPM cost of equity, after-tax cost of debt, WACC. Risk-free as of 2026-05-12.
| Risk-free rate (US 10y Treasury)rf | 4.46% |
| Equity beta (1.11)β | × 1.11 |
| Equity risk premiumERP | 4.46% |
| Cost of equity (CAPM)kₑ | 9.40% |
| Pre-tax cost of debtkd | 4.65% |
| Effective tax ratet | 4.8% |
| After-tax cost of debt | 4.43% |
| Equity weight$-0.3B | -3.3% |
| Debt weight$10.9B | 103.3% |
| WACC | 4.43% |
Growth assumptions
Blended forward growth used as DCF default; terminal pegged to long-run nominal GDP.
| Analyst forward revenue growthFMP | 4.09% |
| Analyst forward EPS growthFMP | 13.52% |
| Historical 5y revenue CAGRFY | -3.38% |
| Historical 5y EPS CAGRFY | -16.15% |
| Sustainable g (ROE × retention)Δ | — |
| Blended near-term growth (g₀) | 4.08% |
| Terminal growth (gₗ) | 2.00% |
Sources
- FMP /analyst-estimates— 8 rows(as of 2022-10-30)
- Treasury rates · 10y— 4.46% rf(as of 2026-05-12)
- market_risk_premium · DB— 4.46% ERP(as of 2026-05-13)
- Sector multiple defaults— Technology (live sector PE unavailable)
- FMP /price-target-consensus— mean $19.80
This page is generated by a quantitative valuation engine for research purposes only and does not constitute investment advice. Methodology follows standard CFA / Damodaran frameworks; assumptions are driven by analyst consensus from Financial Modeling Prep and reported financial statements.