HP Inc.
HP Inc. provides personal computing, printing, 3D printing, hybrid work, gaming, and other related technologies in the United States and internationally. The company operates through three segments: Personal Systems, Printing, and Corporate Investments. The Personal Systems segment offers commercia…
HP Inc. provides personal computing, printing, 3D printing, hybrid work, gaming, and other related technologies in the United States and internationally. The company operates through three segments: Personal Systems, Printing, and Corporate Investments. The Personal Systems segment offers commercial and consumer desktops and notebooks, workstations, thin clients, retail point-of-sale systems, displays, software, hybrid systems, and endpoint security and services, as well as lifecycle services, including support and deployment, configurations, and extended warranty services. The Printing segment provides consumer and commercial printer hardware, supplies, and solutions, as well as office and home printing solutions; and focuses on graphics, 3D printing, and personalization solutions for the commercial and industrial markets. The Corporate Investments segment is involved in the business incubation and investment projects. It serves small- and medium-sized businesses, public sector, and enterprises. The company was formerly known as Hewlett-Packard Company and changed its name to HP Inc. in October 2015. HP Inc. was founded in 1939 and is headquartered in Palo Alto, California.Looks undervalued
5-year outlook: Not shown because confidence is low: Earnings-based DCF is somewhat apart.
Other models: USD 28.39–45.74 (median 41.99). The recommended value is in line with them.
Why: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Details and the full model are below.
Market price below modeled range
Free-cash-flow DCF using TTM through 31 Jul 2026 reported free cash flow, with cash, debt, and shares from the latest report. Base assumptions are 2% growth, 3.25% terminal growth, and 11.5% discount. Low/high cases vary growth by 2 and terminal growth/discount by 1 percentage point; this illustrative range is not a statistical confidence interval or investment advice.
Assumptions: growth 2%, discount rate 11.50%, terminal growth 3.25% (sector defaults). See a worked example.
Blended growth assumption: 2.0% (sector default 8.5%, own revenue history -3.4%, analyst revenue consensus 0.5%).
Analyst consensus expects revenue growth of 0.5% a year; the growth assumption used is 2.0%.
Adjust assumptions
Why this model: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Compare models- Recommended: Free-cash-flow DCF — USD 43.07 (+46.3%)
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EPS-based Gordon proxy
— USD 28.39 (-3.6%)
Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
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DCF (trailing free cash flow)
— USD 43.07 (+46.3%)
Not used: Not chosen: Free-cash-flow DCF ranks ahead of it for this company.
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FCFF (steady state)
— USD 45.74 (+55.4%)
Not used: Assumes only the long-run terminal growth rate from today, so it ignores the near-term growth expected.
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EV/EBITDA (12x)
— USD 41.99 (+42.6%)
Not used: Used only when free cash flow is far below earnings even after averaging three years; a fixed 12x multiple also ignores sector differences.
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Fade DCF (10-year growth fade)
— USD 43.18 (+46.7%)
Not used: An alternative growth path (fading over 10 years) shown for comparison; the automatic choice does not use it.
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EV/Sales (Rule of 40)
— USD 99.95 (+239.5%)
Not used: Used only when cash-flow models land far below the price; here they do not.
| Bear USD 31.43 | 6.3% |
| Base USD 43.07 | 31.6% |
| Bull USD 62.43 | 52.8% |
Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.
At USD 29.44 the market implies about this annual free-cash-flow growth for 5 years (terminal 3.3%, discount 11.5%).
Compare: the market implies -5.4% a year, this model assumes 2.0%. The model is more optimistic than the price, which is why it reads as undervalued.
How the Free-cash-flow DCF value changes with growth (rows) and discount rate (columns). Green cells are above the current price.
| Growth \ Discount | 9.5% | 10.5% | 11.5% | 12.5% | 13.5% |
|---|---|---|---|---|---|
| -2.0% | 48.25 | 40.87 | 35.28 | 30.89 | 27.35 |
| 0.0% | 53.35 | 45.21 | 39.03 | 34.18 | 30.28 |
| 2.0% | 58.86 | 49.87 | 43.07 | 37.73 | 33.43 |
| 4.0% | 64.78 | 54.89 | 47.40 | 41.54 | 36.81 |
| 6.0% | 71.15 | 60.29 | 52.06 | 45.62 | 40.44 |
Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.
Price history and fair value
No chartable saved daily price history is available for this range. The chart uses stored EODHD prices only and will appear after history is saved.
More detail: quality, peers, price history, dividends and financials
Quality score: 64 / 100
Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.
| Profitability | 5 of 5 years profitable | 20 / 20 |
| Cash generation | free cash flow positive in 5 of 5 years | 20 / 20 |
| Growth | revenue -1.5% a year | 4 / 20 |
| Balance sheet | net debt 1.6x EBITDA | 20 / 20 |
| Margins | EBITDA margin 6% | 0 / 20 |
Peers in Information Technology
Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.
| Company | Price | Margin of safety | P/E | P/B | Yield | Quality |
|---|---|---|---|---|---|---|
| HPQ (this company) | USD 29.44 | 31.6% | 11.1 | – | 4.0% | 64 |
| SMCI Supermicro | USD 27.08 | 50.8% | 8.5 | 1.3 | – | 68 |
| SNDK Sandisk | USD 806.43 | 44.1% | 6.4 | 6.8 | – | 76 |
| ADBE Adobe Inc. | USD 246.44 | 42.5% | 13.4 | 8.3 | – | 100 |
| IT Gartner | USD 198.07 | 35.7% | 13.3 | – | – | 92 |
| INTU Intuit | USD 354.84 | 31.9% | 21.1 | 5.1 | 1.4% | 100 |
| GIB-A.TO CGI Inc. | CAD 115.51 | 26.9% | 13.9 | 2.4 | 0.6% | 90 |
| FSLR First Solar | USD 195.76 | 25.9% | 11.3 | 1.9 | – | 84 |
| COHR Coherent Corp. | USD 169.76 | 15.1% | 34.7 | 3.0 | – | 73 |
| Peer median | 13.3 | 3.0 | ||||
Dividends
Paid in the last 12 months: USD 1.20 per share · yield 4.08% at the current price.
| Year | Dividends per share |
|---|---|
| 2026 (so far) | 0.900 |
| 2025 | 1.167 |
| 2024 | 1.117 |
| 2023 | 1.065 |
| 2022 | 1.013 |
| 2021 | 0.832 |
Trailing 12-month financials
TTM through 31 Jul 2026 · quarterly EODHD data · data downloaded 06 Nov 2026 12:29
| Revenue | USD 59,162,000,000 |
|---|---|
| EBITDA | USD 3,758,000,000 |
| EBIT | USD 3,217,000,000 |
| Net income | USD 2,451,000,000 |
| Free cash flow | USD 3,881,000,000 |
| Capital expenditures | USD 787,000,000 |
| Debt | USD 10,339,000,000 |
| Cash | USD 4,169,000,000 |
| Working capital | USD -7,217,000,000 |
| Shares outstanding | 927,000,000 |
| Reported dividends per share | USD 1.1812 |