Hewlett-Packard Company offers commercial personal computers (PCs), consumer PCs, workstations, thin clients, tablets, retail point-of-sale systems, calculators and other related accessories, software, support, and services for the commercial and consumer markets. The company was founded in 1939 and is based in Palo Alto, California.
HPQ Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for HPQ, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Hp Inc ranked in the 40th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Hp Inc, consider:
Its compound free cash flow growth rate, as measured over the past 5.49 years, is -0.13% -- higher than just 14.22% of stocks in our DCF forecasting set.
Hp Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than just 0% of US stocks with positive free cash flow.
The weighted average cost of capital for the company is 7. This value is greater than just 20.3% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Hp Inc? See DBX, APH, MSI, ACN, and FLIR.