Name: HP Inc. (NYSE:HPQ) | Enterprise Value (EV)
Creator: Stock Analysis on Net

Current EV
Historical EV

HP Inc., current enterprise value calculation

Current share price (P)	$18.09
No. shares of common stock outstanding	1,481,913,639
US$ in millions
Common equity (market value)¹	26,808)
Add: Preferred stock, $0.01 par value; none issued (per books)	—)
Add: Non-controlling interests (per books)	—)
Total equity	26,808)
Add: Notes payable and short-term borrowings (per books)	1,463)
Add: Long-term debt, excluding current portion (per books)	4,524)
Total equity and debt	32,795)
Less: Cash and cash equivalents	5,166)
Enterprise value (EV)	27,629)

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

¹ Common equity (market value) = Share price × No. shares of common stock outstanding
= 18.09 × 1,481,913,639

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HP Inc., EV calculation

	Oct 31, 2018	Oct 31, 2017	Oct 31, 2016	Oct 31, 2015	Oct 31, 2014	Oct 31, 2013
Share price^1, 2	$22.29	$20.74	$15.51	$12.26	$39.82	$28.07
No. shares of common stock outstanding¹	1,553,494,507	1,645,228,387	1,705,451,042	1,791,848,366	1,834,081,993	1,908,777,048
US$ in millions
Common equity (market value)³	34,627)	34,122)	26,452)	21,968)	73,033)	53,579)
Add: Preferred stock, $0.01 par value; none issued (book value)	—)	—)	—)	—)	—)	—)
Add: Non-controlling interests (book value)	—)	—)	—)	383)	396)	387)
Total equity	34,627)	34,122)	26,452)	22,351)	73,429)	53,966)
Add: Notes payable and short-term borrowings (book value)	1,463)	1,072)	78)	2,885)	3,486)	5,979)
Add: Long-term debt, excluding current portion (book value)	4,524)	6,747)	6,758)	21,780)	16,039)	16,608)
Total equity and debt	40,614)	41,941)	33,288)	47,016)	92,954)	76,553)
Less: Cash and cash equivalents	5,166)	6,997)	6,288)	17,433)	15,133)	12,163)
Enterprise value (EV)	35,448)	34,944)	27,000)	29,583)	77,821)	64,390)

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 Data adjusted for splits and stock dividends.

² Closing price as at the filing date of HP Inc. Annual Report.

³ 2018 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 22.29 × 1,553,494,507

A significant fluctuation in Enterprise Value (EV) and equity metrics is observed between 2013 and 2018. The period is characterized by an initial increase in valuation, a sharp contraction in 2015, and a subsequent moderate recovery through 2018.

Enterprise Value Trends: The Enterprise Value peaked in 2014 at 77,821 million US$, before experiencing a substantial decline to 29,583 million US$ in 2015. After a slight further dip in 2016 to 27,000 million US$, the value recovered to 35,448 million US$ by the end of 2018.
Equity Market Value Volatility: Market value of common equity mirrored the EV trend, rising to 73,033 million US$ in 2014 and falling precipitously to 21,968 million US$ in 2015. A steady upward trajectory followed, with the value increasing to 34,627 million US$ by 2018.
Capital Structure and Total Liabilities: The combined value of equity and debt reached a maximum of 92,954 million US$ in 2014. This figure declined sharply to 47,016 million US$ in 2015 and reached a period low of 33,288 million US$ in 2016, before stabilizing at 40,614 million US$ in 2018.

The high correlation between common equity market value and Enterprise Value suggests that the overall valuation changes were primarily driven by equity fluctuations. The dramatic reduction in all measured values between 2014 and 2015 indicates a significant structural change in the balance sheet, followed by a period of stabilization and gradual growth in the company's market presence.

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HP Inc. (NYSE:HPQ)

Enterprise Value (EV)

Current Enterprise Value (EV)

Historical Enterprise Value (EV)