The fair value of requested stock should be $99.54
* Note: Prices are in Million (M) USD.
These criteria used Company’s Cash, EBITDA and Debt balance to determines its fair value:
Cash : $2,890 M
Debt : $10,900 M
EBITDA : $4,930 M
Net Debt (Debt - Cash): $8,010 M
Since Net Debt is covered by EBITDA within 2 years, 2 points assigned.
This criteria used industry in which company operates:
Sector: Technology
Industry: Computer Hardware
Based on sector, 5 points assigned.
This criteria used Company’s Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 6.91
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $5,386 M
Average Revenue: $76,025 M
Free Cash Flow to Revenue : 7 %
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-10-31): $53,559 M
Revenue 4 Years Ago (2020-10-31): $56,639 M
Revenue Growth: -1%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-10-31): $939 M
Share Count 5 Years Ago (2020-10-31): $1,304 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Earnings Per Share (EPS): $3.66
Dividend Per Share (DPS): $1
Payout Ratio: 30%
Dividend Yield: 4%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 4, 4 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 8%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $25
52-Week Low: $27
Threshold Price (15% Above 52-Week Low): $30
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $26,301 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the calculated score, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 31 points to above HP Inc (HPQ) stock.
Value-Trades has assined P/E value 25. Since current year earning per share is $3.66.
The fair value of HP Inc (HPQ) stock should be (25 x $3.66) = $91.50
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