Using the industry peer median P/E multiple (trailing + forward), HP Inc. (HPQ) has a fair value of $49.99 based on 5 comparable companies in the Computer Hardware industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| HP Inc.HPQ | 18,522 | 7.3x | 6.2x |
| Teledyne Technologies IncorporatedTDY | 28,423 | 32.5x | 31.6x |
| NetApp, Inc.NTAP | 20,860 | 18.6x | 16.3x |
| Leidos Holdings, Inc.LDOS | 19,925 | 14.2x | 15.6x |
| Broadridge Financial Solutions, Inc.BR | 18,914 | 22.8x | 17.0x |
| Super Micro Computer, Inc.SMCI | 13,189 | 13.1x | 10.5x |
| Industry Median | 18.6x | 16.3x | |
| (*) Profit after tax | 2,529 | 2,966 | |
| Equity Value | 46,976 | 48,297 | |
| (/) Outstanding shares | 953 | 953 | |
| Fair Price | $49 | $51 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.