Using the PEG framework with analyst consensus forward EPS growth of 15.7% plus 6.1% dividend yield, HP Inc. has a fair value of $45.05 based on NTM EPS (FY2026) of $2.86. The current PEG ratio is 0.43.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 9.6% |
| Dividend Yield | +6.1% |
| Adjusted Growth (clamped 8–25%) | 15.7% |
| Fair P/E | 15.7x |
| NTM EPS (FY2026) | $2.86 |
| Fair Value | $45.05 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $2.65 | — | — |
| FY2026E | $2.86 | +8.0% | 10 |
| FY2027E | $2.97 | +3.6% | 10 |
| FY2028E | $3.33 | +12.2% | 10 |
| FY2029E | $3.83 | +15.0% | 5 |
4Y Forward EPS CAGR: 9.6%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $6.5B | $5.36 | — |
| FY2022 | $3.1B | $2.98 | -44.4% |
| FY2023 | $3.3B | $3.26 | +9.4% |
| FY2024 | $2.8B | $2.81 | -13.8% |
| FY2025 | $2.5B | $2.65 | -5.7% |
4Y Historical EPS CAGR: -16.1%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.