Current Price
$35.48
PE Ratio (TTM)
13.4x
Intrinsic Value
$36.9
+3.8% margin of safety
COMPETITIVE MOAT
↑Brand Recognition and Loyalty
HP's established brand commands significant consumer and enterprise trust. This recognition fosters repeat purchases and reduces the perceived risk for buyers choosing HP products.
↑Scale and Supply Chain Efficiency
HP's massive scale allows for favorable component pricing and efficient manufacturing. This cost advantage is difficult for smaller competitors to replicate.
↑Enterprise Relationships and Services
Strong, long-standing relationships with large enterprises and government entities create sticky contracts. HP's integrated services and support further lock in these customers.
INVESTMENT RISKS
↓Dependence on PC Market Cycles
HP's revenue is heavily tied to the cyclical nature of PC upgrades and enterprise refresh cycles. Downturns in these markets can significantly impact sales and profitability.
↓Competition from Integrated Tech Giants
Large technology companies offering integrated hardware, software, and cloud solutions pose a significant competitive threat. They can bundle offerings that make standalone hardware less attractive.
↓Execution Risk in Diversification Efforts
While HP aims to diversify, successful execution of new product categories and services is crucial. Failure to innovate or gain market share in new areas could leave it vulnerable.
Base case
HPQ base case PE valuation
At a current price of $35.48, the base case PE valuation puts HPQ fair value near $36.9 per share. That figure assumes 3.2% yearly earnings growth, a target PE multiple of 13.29x, and a 10% discount rate.
Intrinsic Value
$36.9
Margin of safety
+3.8%
Expected annual return
+0.8%
Base case assumptions: 3.2% annual earnings growth, 13.29x target PE, 10% discount rate, 5 year projection. Data as of 2026-09-11.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the HPQ PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for HP Inc. respond.
Open PE Calculator for HPQCompany Overview
HP Inc. is a global technology company specializing in personal computing devices, imaging and printing solutions, and a variety of related technologies, software, and support services, serving clients both in the United States and worldwide. Its operations are structured into three main divisions: Personal Systems, Printing, and Corporate Investments. The Personal Systems segment offers a broad array of computing hardware, including desktop and laptop personal computers for both business and individual consumers, along with specialized workstations, thin clients, commercial mobile devices, retail point-of-sale systems, displays, and various peripherals. This division also encompasses essential software, support, and associated services. The Printing division focuses on delivering printer hardware for both general consumers and commercial clients, alongside a full suite of supplies, comprehensive print solutions, and related services. Finally, the Corporate Investments segment is dedicated to fostering innovation through HP Labs, incubating new business ventures, and managing various investment projects. HP's extensive client base spans individual end-users, small and medium-sized enterprises (SMEs), and major corporations, reaching diverse sectors such as government, healthcare, and education. Established in 1939, the company initially operated as Hewlett-Packard Company before rebranding to HP Inc. in October 2015. Its corporate headquarters are located in Palo Alto, California.
Financial Metrics — HPQ PE Stock Valuation Data
PE Ratio (TTM)
13.4x
PEG Ratio
n/m
Earnings Yield
7.52%
ROE (TTM)
-727.3%
Revenue/Share (TTM)
$64.38
Dividend Yield
3.38%
Debt/Equity
n/m
Frequently Asked Questions
What is the PE ratio of HPQ?
The trailing twelve-month PE ratio of HPQ reflects how much investors pay per dollar of HP Inc.'s earnings. This metric is most useful when compared to Computer Hardware peers and the company's own historical range.
Is HPQ overvalued based on PE ratio?
HPQ's PE of 13.4x combined with a PEG ratio of -3.09 provides a growth-adjusted perspective. HPQ has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Computer Hardware, a DCF analysis may be more appropriate.
How do I value HPQ stock using PE ratio?
To value HP Inc. using PE: (1) Compare the current PE (13.4x) against the Computer Hardware median to assess relative pricing, (2) check the PEG ratio (-3.09) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of HPQ?
HPQ's PEG ratio is -3.09, calculated by dividing the PE ratio (13.4x) by the expected earnings growth rate. Because HPQ has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for HPQ stock valuation?
PE ratio gives a quick relative read — how HPQ is priced versus Computer Hardware peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See HPQ DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Technology valuationsP/E and DCF value HPQ with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-09-11. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.