Current Price
$28.41
PE Ratio (TTM)
10.4x
Intrinsic Value
$31.65
+10.2% margin of safety
COMPETITIVE MOAT
↑Brand Recognition and Loyalty
HP possesses strong brand recognition in the PC and printing markets. This established presence fosters customer loyalty and repeat purchases, creating a durable advantage.
↑Extensive Distribution Network
HP benefits from a vast global distribution and retail network. This wide reach makes its products accessible to a broad customer base, a significant barrier to new entrants.
↑Scale and Manufacturing Efficiency
HP's large-scale manufacturing operations provide cost advantages. This efficiency allows for competitive pricing and sustained profitability in its core hardware businesses.
INVESTMENT RISKS
↓Dependence on PC and Print Markets
HP's revenue remains heavily reliant on the mature PC and printing markets. A slowdown in these sectors, or a significant shift in consumer preferences, could negatively impact its financial performance.
↓Execution of AI Strategy
The success of HP's AI initiatives, including its partnership with OpenAI and exploration of electric propulsion, hinges on effective execution. Failure to integrate and monetize these new ventures could hinder growth.
↓Valuation and Market Sentiment
Despite recent revenue growth, HP's stock has experienced declines, suggesting market skepticism. The company must consistently demonstrate strong performance to overcome negative sentiment and justify its valuation.
Base case
HPQ base case PE valuation
At a current price of $28.41, the base case PE valuation puts HPQ fair value near $31.65 per share. That figure assumes 3.2% yearly earnings growth, a target PE multiple of 10x, and a 10% discount rate.
Intrinsic Value
$31.65
Margin of safety
+10.2%
Expected annual return
+2.2%
Base case assumptions: 3.2% annual earnings growth, 10x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-29.
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)
10.4x
PEG Ratio
2.08
Earnings Yield
9.75%
ROE (TTM)
-473.4%
Revenue/Share (TTM)
$62.27
Dividend Yield
4.19%
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 10.4x combined with a PEG ratio of 2.08 provides a growth-adjusted perspective. A PEG above 2.0 means the P/E is high relative to 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 (10.4x) against the Computer Hardware median to assess relative pricing, (2) check the PEG ratio (2.08) 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 2.08, calculated by dividing the PE ratio (10.4x) by the expected earnings growth rate. A PEG above 2.0 means the P/E is high relative to the expected earnings growth rate. 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 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.