HP Inc. (HPQ) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+25.8%

$36.21

vs $28.79 price

Levered DCF

$31.35

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

1.61

Distress zone

Rating

B-

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	10.36×	12.55×	8×	9.15×	5.78×	8.94×	8.35×	7.32×
P/B	-75.65×	-26.28×	-24.43×	-9.48×	-22.96×	-11.39×	-22.06×	-61.01×
P/S	0.47×	0.65×	0.49×	0.46×	0.59×	0.45×	0.45×	0.67×
EV / EBITDA	8.16×	9×	7.55×	6.92×	4.91×	6.58×	7.67×	10.33×
Gross margin	20.0%	22.1%	21.4%	19.5%	21.1%	18.4%	19.0%	18.2%
Operating margin	6.6%	7.1%	6.4%	7.2%	8.4%	6.1%	6.6%	6.6%
Net margin	4.6%	5.2%	6.1%	5.0%	10.3%	5.0%	5.4%	9.1%
Current ratio	0.77×	0.72×	0.73×	0.75×	0.76×	0.79×	0.8×	0.85×
Debt / equity	-31.45×	-8.24×	-10.05×	-4.06×	-5.34×	-3.32×	-4.31×	-9.37×
Interest coverage	7.16×	6.29×	5.05×	12.7×	21.1×	14.4×	16.02×	12.28×
Dividend yield	4.2%	3.1%	4.0%	3.6%	2.5%	3.9%	3.7%	2.3%
Payout ratio	43.0%	38.7%	31.8%	33.1%	14.3%	35.4%	30.8%	16.9%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	-730.9%	-209.8%	-305.2%	-103.5%	-397.9%	-126.3%	-264.2%	-833.6%
Return on invested capital	25.0%	24.7%	26.2%	25.5%	42.2%	32.1%	45.4%	35.0%
Return on assets	6.1%	7.0%	8.8%	8.1%	16.9%	8.1%	9.4%	15.4%
Free cash flow yield	10.7%	9.1%	11.3%	12.8%	15.4%	14.7%	15.1%	10.2%
Earnings yield	9.7%	8.0%	12.5%	10.9%	17.3%	11.1%	12.0%	13.7%
Enterprise value	$33.4B	$42.4B	$33.8B	$37.8B	$42.2B	$27.9B	$26.9B	$39.8B
Net debt / EBITDA	1.76×	1.62×	1.71×	1.67×	0.52×	0.6×	0.17×	0.21×
Cash conversion cycle (days)	-22	-24	-18	-15	-8	-15	-14	-17