Price to Earnings (P/E)
since 2005
Calculation
HP Inc., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net earnings (loss)1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 13, 2018 | 6.50 | = | 22.29 | ÷ | 3.43 | 3.43 | = | 5,327 | ÷ | 1,553,494,507 | |
| Dec 14, 2017 | 13.51 | = | 20.74 | ÷ | 1.54 | 1.54 | = | 2,526 | ÷ | 1,645,228,387 | |
| Dec 15, 2016 | 10.60 | = | 15.51 | ÷ | 1.46 | 1.46 | = | 2,496 | ÷ | 1,705,451,042 | |
| Dec 16, 2015 | 4.82 | = | 12.26 | ÷ | 2.54 | 2.54 | = | 4,554 | ÷ | 1,791,848,366 | |
| Dec 18, 2014 | 14.57 | = | 39.82 | ÷ | 2.73 | 2.73 | = | 5,013 | ÷ | 1,834,081,993 | |
| Dec 30, 2013 | 10.48 | = | 28.07 | ÷ | 2.68 | 2.68 | = | 5,113 | ÷ | 1,908,777,048 | |
| Dec 27, 2012 | — | = | 14.04 | ÷ | -6.49 | -6.49 | = | -12,650 | ÷ | 1,948,148,051 | |
| Dec 14, 2011 | 7.40 | = | 26.38 | ÷ | 3.57 | 3.57 | = | 7,074 | ÷ | 1,984,033,497 | |
| Dec 15, 2010 | 10.31 | = | 41.23 | ÷ | 4.00 | 4.00 | = | 8,761 | ÷ | 2,190,425,610 | |
| Dec 17, 2009 | 15.60 | = | 50.56 | ÷ | 3.24 | 3.24 | = | 7,660 | ÷ | 2,364,168,918 | |
| Dec 18, 2008 | 10.26 | = | 35.37 | ÷ | 3.45 | 3.45 | = | 8,329 | ÷ | 2,416,201,335 | |
| Dec 18, 2007 | 18.08 | = | 51.02 | ÷ | 2.82 | 2.82 | = | 7,264 | ÷ | 2,573,868,626 | |
| Dec 22, 2006 | 17.84 | = | 40.63 | ÷ | 2.28 | 2.28 | = | 6,198 | ÷ | 2,720,808,149 | |
| Dec 21, 2005 | 34.04 | = | 28.77 | ÷ | 0.85 | 0.85 | = | 2,398 | ÷ | 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 data from 2005 to 2018 reveals a significant long-term contraction in the price-to-earnings (P/E) multiple, reflecting a shift in market valuation relative to the company's earnings capacity.
- Share Price and Earnings Per Share (EPS) Volatility
- Share prices experienced substantial volatility, peaking at 51.02 USD in 2007 before entering a period of decline and fluctuation, reaching a low of 12.26 USD in 2015. Earnings per share showed an initial growth phase from 0.85 USD in 2005 to a peak of 4.00 USD in 2010. However, a severe earnings shock occurred in 2012, where EPS fell to -6.49 USD, though a recovery followed, with EPS returning to 3.43 USD by 2018.
- P/E Ratio Compression
- A pronounced downward trend in the P/E ratio is observable over the analyzed period. Starting at a high of 34.04 in 2005, the ratio dropped sharply to 17.84 by 2006 and continued to compress. Between 2013 and 2018, the P/E ratio remained consistently lower than the 2005-2007 levels, reaching a period low of 4.82 in 2015 and ending the period at 6.50 in 2018. This compression suggests a decrease in the premium investors were willing to pay for each dollar of earnings.
- Impact of Negative Earnings
- The absence of a P/E ratio for the 2012 period is directly attributable to the negative EPS of -6.49 USD, as P/E ratios are not typically calculated or reported during loss-making years. This period marks the most significant disruption in the valuation trend and coincides with a sharp decline in the share price from 26.38 USD in 2011 to 14.04 USD in 2012.
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/E, 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 | 6.50 | 16.07 | 60.93 | 1,964.84 | — | 17.86 | 24.38 |
| Dec 14, 2017 | 13.51 | 18.32 | 43.57 | 16.37 | — | — | 14.85 |
| Dec 15, 2016 | 10.60 | 13.49 | 45.89 | 14.69 | — | — | 14.46 |
| Dec 16, 2015 | 4.82 | 12.46 | 38.16 | 14.82 | — | — | 12.64 |
| Dec 18, 2014 | 14.57 | 15.60 | 52.60 | 16.14 | — | — | 22.18 |
| Dec 30, 2013 | 10.48 | 12.75 | — | 12.98 | — | — | 26.49 |
| Dec 27, 2012 | — | 13.42 | — | 12.55 | — | — | 18.42 |
| Dec 14, 2011 | 7.40 | 14.37 | — | 13.54 | — | — | 12.74 |
| Dec 15, 2010 | 10.31 | 20.16 | — | 15.56 | — | — | 13.73 |
| Dec 17, 2009 | 15.60 | 31.17 | — | 21.79 | — | — | 17.29 |
| Dec 18, 2008 | 10.26 | 19.00 | — | 16.35 | — | — | 13.14 |
| Dec 18, 2007 | 18.08 | 41.16 | — | 26.61 | — | — | 13.15 |
| Dec 22, 2006 | 17.84 | 36.65 | — | 24.85 | — | — | — |
| Dec 21, 2005 | 34.04 | 45.25 | — | 19.86 | — | — | — |
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/E, long-term trends, comparison to sector (technology hardware & equipment)
| HP Inc. | Technology Hardware & Equipment | |
|---|---|---|
| Dec 13, 2018 | 6.50 | 19.89 |
| Dec 14, 2017 | 13.51 | 18.27 |
| Dec 15, 2016 | 10.60 | 13.86 |
| Dec 16, 2015 | 4.82 | 12.86 |
| Dec 18, 2014 | 14.57 | 15.77 |
| Dec 30, 2013 | 10.48 | 12.81 |
| Dec 27, 2012 | — | 13.28 |
| Dec 14, 2011 | 7.40 | 14.20 |
| Dec 15, 2010 | 10.31 | 18.52 |
| Dec 17, 2009 | 15.60 | 26.30 |
| Dec 18, 2008 | 10.26 | 17.34 |
| Dec 18, 2007 | 18.08 | 31.28 |
| Dec 22, 2006 | 17.84 | 27.95 |
| Dec 21, 2005 | 34.04 | 24.65 |
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/E, long-term trends, comparison to industry (information technology)
| HP Inc. | Information Technology | |
|---|---|---|
| Dec 13, 2018 | 6.50 | 23.17 |
| Dec 14, 2017 | 13.51 | 23.55 |
| Dec 15, 2016 | 10.60 | 19.69 |
| Dec 16, 2015 | 4.82 | 16.54 |
| Dec 18, 2014 | 14.57 | 17.14 |
| Dec 30, 2013 | 10.48 | 14.15 |
| Dec 27, 2012 | — | 14.37 |
| Dec 14, 2011 | 7.40 | 13.71 |
| Dec 15, 2010 | 10.31 | 15.08 |
| Dec 17, 2009 | 15.60 | 21.50 |
| Dec 18, 2008 | 10.26 | 15.83 |
| Dec 18, 2007 | 18.08 | 36.48 |
| Dec 22, 2006 | 17.84 | 32.07 |
| Dec 21, 2005 | 34.04 | 33.76 |
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).