Stock Analysis on Net

HP Inc. (NYSE:HPQ)

This company has been moved to the archive! The financial data has not been updated since August 29, 2019.

Enterprise Value to FCFF (EV/FCFF)

Microsoft Excel

Free Cash Flow to The Firm (FCFF)

HP Inc., FCFF calculation

US$ in millions

Microsoft Excel
12 months ended: Oct 31, 2018 Oct 31, 2017 Oct 31, 2016 Oct 31, 2015 Oct 31, 2014 Oct 31, 2013
Net earnings 5,327 2,526 2,496 4,554 5,013 5,113
Net noncash charges (2,406) 1,312 1,071 6,349 6,768 6,468
Changes in operating assets and liabilities, net of acquisitions 1,607 (161) (337) (4,413) 552 27
Net cash provided by operating activities 4,528 3,677 3,230 6,490 12,333 11,608
Interest expense paid, net of tax1 252 248 225 512 519 657
Investment in property, plant and equipment (546) (402) (433) (3,603) (3,853) (3,199)
Proceeds from sale of property, plant and equipment 172 69 6 424 843 653
Purchase of assets under capital leases (258) (200) (185) (70) (113) (3)
Free cash flow to the firm (FCFF) 4,148 3,392 2,843 3,753 9,729 9,716

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).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the HP Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. HP Inc. FCFF increased from 2016 to 2017 and from 2017 to 2018.

Interest Paid, Net of Tax

HP Inc., interest paid, net of tax calculation

US$ in millions

Microsoft Excel
12 months ended: Oct 31, 2018 Oct 31, 2017 Oct 31, 2016 Oct 31, 2015 Oct 31, 2014 Oct 31, 2013
Effective Income Tax Rate (EITR)
EITR1 23.30% 22.90% 29.10% 3.80% 23.50% 21.50%
Interest Paid, Net of Tax
Interest expense paid, before tax 329 322 318 532 678 837
Less: Interest expense paid, tax2 77 74 93 20 159 180
Interest expense paid, net of tax 252 248 225 512 519 657

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).

1 See details »

2 2018 Calculation
Interest expense paid, tax = Interest expense paid × EITR
= 329 × 23.30% = 77


Enterprise Value to FCFF Ratio, Current

HP Inc., current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 27,629
Free cash flow to the firm (FCFF) 4,148
Valuation Ratio
EV/FCFF 6.66
Benchmarks
EV/FCFF, Competitors1
Apple Inc. 26.52
Arista Networks Inc. 42.59
Cisco Systems Inc. 9.50
Super Micro Computer Inc. 90.03

Based on: 10-K (reporting date: 2018-10-31).

1 Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.


Enterprise Value to FCFF Ratio, Historical

HP Inc., historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Oct 31, 2018 Oct 31, 2017 Oct 31, 2016 Oct 31, 2015 Oct 31, 2014 Oct 31, 2013
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 35,448 34,944 27,000 29,583 77,821 64,390
Free cash flow to the firm (FCFF)2 4,148 3,392 2,843 3,753 9,729 9,716
Valuation Ratio
EV/FCFF3 8.55 10.30 9.50 7.88 8.00 6.63
Benchmarks
EV/FCFF, Competitors4
Apple Inc. 15.09
Arista Networks Inc.
Cisco Systems Inc. 14.32
Super Micro Computer Inc. 18.10

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).

1 See details »

2 See details »

3 2018 Calculation
EV/FCFF = EV ÷ FCFF
= 35,448 ÷ 4,148 = 8.55

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. HP Inc. EV/FCFF ratio increased from 2016 to 2017 but then decreased significantly from 2017 to 2018.