HP's established brand name in PCs and printers fosters customer loyalty. This recognition provides a consistent demand base, making it harder for new entrants to gain significant market share.

↑Scale and Distribution Network

HP's vast global manufacturing and distribution network allows for cost efficiencies and broad market reach. This scale is difficult for smaller competitors to replicate, ensuring product availability.

↑Partnerships and Ecosystem

Strategic partnerships, like the one with Ferrari, can enhance product appeal and drive innovation. These collaborations can create unique offerings that differentiate HP in a competitive market.

INVESTMENT RISKS

↓Intense Market Competition

The PC and printer markets are highly competitive with thin margins. Competitors can quickly replicate features, putting pressure on HP's pricing power and profitability.

↓Dependence on PC Market Cycles

HP's revenue is heavily tied to the cyclical nature of the PC market. Economic downturns or shifts in consumer preferences away from PCs can significantly impact sales.

↓Supply Chain Vulnerabilities

Global supply chain disruptions, as seen with component shortages, can impact production and delivery. This can lead to lost sales and increased costs for HP.

Base case

HPQ base case PE valuation

A base case PE valuation for HPQ estimates a fair value of about $28.26 per share, against a current price of $25.24. The model assumes 2.1% annual earnings growth, a 9x target PE multiple, and a 10% discount rate.

Intrinsic Value

$28.26

Margin of safety

+10.7%

Expected annual return

+2.3%

Base case assumptions: 2.1% annual earnings growth, 9x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.

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 HPQ

Or try DCF Valuation for HPQ →

Company 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)

9.1x

PEG Ratio

1.83

Earnings Yield

10.97%

ROE (TTM)

-473.4%

Revenue/Share (TTM)

$62.27

Dividend Yield

4.71%

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 9.1x combined with a PEG ratio of 1.83 provides a growth-adjusted perspective. A PEG near 1.0 suggests the PE ratio is reasonably justified by the earnings growth rate. 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 (9.1x) against the Computer Hardware median to assess relative pricing, (2) check the PEG ratio (1.83) 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 1.83, calculated by dividing the PE ratio (9.1x) by the expected earnings growth rate. A PEG near 1.0 suggests the stock is fairly priced relative to growth. 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

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P/E and DCF value HPQ with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.

Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.

This is an estimate, not investment advice.