HP Inc. (HPQ) DCF Valuation
Transparent DCF models put HP Inc. (HPQ)'s fair value in a range of $39.24 – $49.95 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $25.05 sits below that range — by these conservative assumptions it screens as potentially undervalued.
Reverse DCF: at today's $25.05, the market is pricing in roughly -3.1%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of -7.3%. The price is betting on acceleration above its track record.
Current Price
$25.05
Fair-Value Range
$39.24 – $49.95
Market-Implied Growth
-3.1%/yr
vs -7.3% 5Y actual
HPQ DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $3.1B · 0.91B shares · net debt $6.0B
Estimated Fair Value
$49.95
+99.5% vs $25.05
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $25.05; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $63.67 | $67.27 | $71.52 | $76.63 | $82.87 |
| 9.0% | $53.76 | $56.23 | $59.07 | $62.38 | $66.30 |
| 10.0% | $46.22 | $47.97 | $49.95 | $52.22 | $54.84 |
| 11.0% | $40.29 | $41.57 | $43.01 | $44.62 | $46.45 |
| 12.0% | $35.51 | $36.47 | $37.54 | $38.72 | $40.05 |
About HP Inc.
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.
- Sector
- Technology
- Industry
- Computer Hardware
- CEO
- Bruce Dale Broussard