Price to Book Value (P/BV)
since 2005
Calculation
HP Inc., P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Total HP stockholders’ equity (deficit)1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 13, 2018 | — | = | 22.29 | ÷ | -0.41 | -0.41 | = | -639 | ÷ | 1,553,494,507 | |
| Dec 14, 2017 | — | = | 20.74 | ÷ | -2.07 | -2.07 | = | -3,408 | ÷ | 1,645,228,387 | |
| Dec 15, 2016 | — | = | 15.51 | ÷ | -2.28 | -2.28 | = | -3,889 | ÷ | 1,705,451,042 | |
| Dec 16, 2015 | 0.79 | = | 12.26 | ÷ | 15.50 | 15.50 | = | 27,768 | ÷ | 1,791,848,366 | |
| Dec 18, 2014 | 2.73 | = | 39.82 | ÷ | 14.57 | 14.57 | = | 26,731 | ÷ | 1,834,081,993 | |
| Dec 30, 2013 | 1.96 | = | 28.07 | ÷ | 14.29 | 14.29 | = | 27,269 | ÷ | 1,908,777,048 | |
| Dec 27, 2012 | 1.22 | = | 14.04 | ÷ | 11.52 | 11.52 | = | 22,436 | ÷ | 1,948,148,051 | |
| Dec 14, 2011 | 1.36 | = | 26.38 | ÷ | 19.47 | 19.47 | = | 38,625 | ÷ | 1,984,033,497 | |
| Dec 15, 2010 | 2.23 | = | 41.23 | ÷ | 18.47 | 18.47 | = | 40,449 | ÷ | 2,190,425,610 | |
| Dec 17, 2009 | 2.95 | = | 50.56 | ÷ | 17.14 | 17.14 | = | 40,517 | ÷ | 2,364,168,918 | |
| Dec 18, 2008 | 2.19 | = | 35.37 | ÷ | 16.12 | 16.12 | = | 38,942 | ÷ | 2,416,201,335 | |
| Dec 18, 2007 | 3.41 | = | 51.02 | ÷ | 14.97 | 14.97 | = | 38,526 | ÷ | 2,573,868,626 | |
| Dec 22, 2006 | 2.90 | = | 40.63 | ÷ | 14.02 | 14.02 | = | 38,144 | ÷ | 2,720,808,149 | |
| Dec 21, 2005 | 2.20 | = | 28.77 | ÷ | 13.10 | 13.10 | = | 37,176 | ÷ | 2,837,653,721 |
Based on: 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31), 10-K (reporting date: 2012-10-31), 10-K (reporting date: 2011-10-31), 10-K (reporting date: 2010-10-31), 10-K (reporting date: 2009-10-31), 10-K (reporting date: 2008-10-31), 10-K (reporting date: 2007-10-31), 10-K (reporting date: 2006-10-31), 10-K (reporting date: 2005-10-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of HP Inc. Annual Report.
The financial trajectory between 2005 and 2018 is characterized by significant volatility in market valuation and a critical transformation in the company's equity position. While the early period showed steady growth in both market price and book value, the latter years reveal a stark divergence resulting in negative book value per share.
- Share Price Dynamics
- The share price experienced a period of appreciation from 2005 to 2007, peaking at 51.02 US$. This was followed by a cycle of volatility, including a sharp decline in 2008 and a secondary peak in 2009. A prolonged downward trend occurred between 2010 and 2012, with a temporary recovery reaching 39.82 US$ in 2014 before falling to a low of 12.26 US$ in 2015. A gradual recovery is noted from 2016 through 2018, ending at 22.29 US$.
- Book Value per Share (BVPS) Evolution
- BVPS exhibited consistent growth from 2005 to 2011, rising from 13.10 US$ to 19.47 US$. A significant reduction occurred in 2012, where the value dropped to 11.52 US$. Following a brief period of stabilization, a fundamental shift occurred in 2016, when the BVPS transitioned to a negative value of -2.28 US$. This negative equity position persisted through 2018, although the deficit narrowed to -0.41 US$ by the end of the period.
- Price to Book Value (P/BV) Analysis
- The P/BV ratio peaked in 2007 at 3.41, reflecting high market optimism relative to the accounting value of the company. The ratio remained generally above 2.0 through 2010, indicating a premium valuation. However, a contraction trend began in 2011, with the ratio falling to 1.22 by 2012. Despite a recovery to 2.73 in 2014, the ratio collapsed to 0.79 in 2015, signaling that the market valued the company at less than its book value. For the period between 2016 and 2018, the P/BV ratio is unavailable due to the negative book value per share, rendering the traditional ratio inapplicable.
The convergence of these trends suggests a transition from a growth-oriented valuation model to one characterized by equity erosion. The emergence of negative book value per share after 2015 indicates that liabilities exceeded assets, a condition that fundamentally altered the utility of the P/BV ratio as a valuation metric for the final three years of the period.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Comparison to Competitors
HP Inc., P/BV, long-term trends, comparison to competitors
| HP Inc. | Apple Inc. | Arista Networks Inc. | Cisco Systems Inc. | Dell Technologies Inc. | Lumentum Holdings Inc. | Super Micro Computer Inc. | |
|---|---|---|---|---|---|---|---|
| Dec 13, 2018 | — | 8.93 | 9.33 | 5.00 | — | 4.66 | 1.33 |
| Dec 14, 2017 | — | 6.61 | 11.10 | 2.38 | — | 5.57 | 1.28 |
| Dec 15, 2016 | — | 4.81 | 7.63 | 2.48 | — | 4.26 | 1.44 |
| Dec 16, 2015 | 0.79 | 5.57 | 5.86 | 2.23 | — | 2.63 | 2.08 |
| Dec 18, 2014 | 2.73 | 5.53 | 8.22 | 2.24 | — | — | 2.56 |
| Dec 30, 2013 | 1.96 | 3.82 | — | 2.19 | — | — | 1.51 |
| Dec 27, 2012 | 1.22 | 4.74 | — | 1.97 | — | — | 1.63 |
| Dec 14, 2011 | 1.36 | 4.86 | — | 1.86 | — | — | 1.78 |
| Dec 15, 2010 | 2.23 | 5.91 | — | 2.73 | — | — | 1.64 |
| Dec 17, 2009 | 2.95 | 6.39 | — | 3.46 | — | — | 1.56 |
| Dec 18, 2008 | 2.19 | 4.37 | — | 3.83 | — | — | 2.20 |
| Dec 18, 2007 | 3.41 | 9.90 | — | 6.20 | — | — | 2.20 |
| Dec 22, 2006 | 2.90 | 7.30 | — | 5.80 | — | — | — |
| Dec 21, 2005 | 2.20 | 8.09 | — | 4.92 | — | — | — |
Based on: 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31), 10-K (reporting date: 2012-10-31), 10-K (reporting date: 2011-10-31), 10-K (reporting date: 2010-10-31), 10-K (reporting date: 2009-10-31), 10-K (reporting date: 2008-10-31), 10-K (reporting date: 2007-10-31), 10-K (reporting date: 2006-10-31), 10-K (reporting date: 2005-10-31).
Comparison to Sector (Technology Hardware & Equipment)
HP Inc., P/BV, long-term trends, comparison to sector (technology hardware & equipment)
| HP Inc. | Technology Hardware & Equipment | |
|---|---|---|
| Dec 13, 2018 | — | 7.77 |
| Dec 14, 2017 | — | 5.24 |
| Dec 15, 2016 | — | 4.05 |
| Dec 16, 2015 | 0.79 | 4.45 |
| Dec 18, 2014 | 2.73 | 4.43 |
| Dec 30, 2013 | 1.96 | 3.29 |
| Dec 27, 2012 | 1.22 | 3.89 |
| Dec 14, 2011 | 1.36 | 3.71 |
| Dec 15, 2010 | 2.23 | 4.38 |
| Dec 17, 2009 | 2.95 | 4.68 |
| Dec 18, 2008 | 2.19 | 4.03 |
| Dec 18, 2007 | 3.41 | 7.36 |
| Dec 22, 2006 | 2.90 | 6.24 |
| Dec 21, 2005 | 2.20 | 5.69 |
Based on: 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31), 10-K (reporting date: 2012-10-31), 10-K (reporting date: 2011-10-31), 10-K (reporting date: 2010-10-31), 10-K (reporting date: 2009-10-31), 10-K (reporting date: 2008-10-31), 10-K (reporting date: 2007-10-31), 10-K (reporting date: 2006-10-31), 10-K (reporting date: 2005-10-31).
Comparison to Industry (Information Technology)
HP Inc., P/BV, long-term trends, comparison to industry (information technology)
| HP Inc. | Information Technology | |
|---|---|---|
| Dec 13, 2018 | — | 7.00 |
| Dec 14, 2017 | — | 5.46 |
| Dec 15, 2016 | — | 4.53 |
| Dec 16, 2015 | 0.79 | 4.30 |
| Dec 18, 2014 | 2.73 | 4.36 |
| Dec 30, 2013 | 1.96 | 3.50 |
| Dec 27, 2012 | 1.22 | 3.75 |
| Dec 14, 2011 | 1.36 | 3.98 |
| Dec 15, 2010 | 2.23 | 4.16 |
| Dec 17, 2009 | 2.95 | 4.31 |
| Dec 18, 2008 | 2.19 | 4.00 |
| Dec 18, 2007 | 3.41 | 8.64 |
| Dec 22, 2006 | 2.90 | 7.24 |
| Dec 21, 2005 | 2.20 | 7.40 |
Based on: 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31), 10-K (reporting date: 2012-10-31), 10-K (reporting date: 2011-10-31), 10-K (reporting date: 2010-10-31), 10-K (reporting date: 2009-10-31), 10-K (reporting date: 2008-10-31), 10-K (reporting date: 2007-10-31), 10-K (reporting date: 2006-10-31), 10-K (reporting date: 2005-10-31).