Stock Analysis on Net
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.

Price to FCFE (P/FCFE)

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Free Cash Flow to Equity (FCFE)

HP Inc., FCFE calculation

US$ in millions

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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
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
Proceeds from (payment of) short-term borrowings with original maturities less than 90 days, net 743 202 97 74 148 (154)
Proceeds from short-term borrowings with original maturities greater than 90 days 712 887 — 6,023 — —
Proceeds from debt, net of issuance costs — 5 4 14,735 2,875 279
Payment of short term borrowings with original maturities greater than 90 days (1,596) (3) — (6,296) — —
Payment of debt (2,098) (84) (2,188) (9,571) (6,037) (5,721)
Free cash flow to equity (FCFE) 1,915 4,351 716 8,276 6,309 3,466

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
FCFE Free cash flow to equity is the cash flow available to HP Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. HP Inc. FCFE increased from 2016 to 2017 but then slightly decreased from 2017 to 2018 not reaching 2016 level.

Price to FCFE Ratio, Current

HP Inc., current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding 1,481,913,639
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 1,915
FCFE per share 1.29
Current share price (P) 18.09
Valuation Ratio
P/FCFE 14.00
Benchmarks
P/FCFE, Competitors1
Apple Inc. 29.73
Arista Networks Inc. 41.15
Cisco Systems Inc. 10.89
Super Micro Computer Inc. 151.34

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

1 Click competitor name to see calculations.

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

Price to FCFE Ratio, Historical

HP Inc., historical P/FCFE calculation, comparison to benchmarks

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Oct 31, 2018 Oct 31, 2017 Oct 31, 2016 Oct 31, 2015 Oct 31, 2014 Oct 31, 2013
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
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 1,915 4,351 716 8,276 6,309 3,466
FCFE per share3 1.23 2.64 0.42 4.62 3.44 1.82
Share price1, 4 22.29 20.74 15.51 12.26 39.82 28.07
Valuation Ratio
P/FCFE5 18.08 7.84 36.94 2.65 11.58 15.46
Benchmarks
P/FCFE, Competitors6
Apple Inc. 14.82 — — — — —
Arista Networks Inc. — — — — — —
Cisco Systems Inc. 44.19 — — — — —
Super Micro Computer Inc. 108.26 — — — — —

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 See details »

3 2018 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 1,915,000,000 ÷ 1,553,494,507 = 1.23

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

5 2018 Calculation
P/FCFE = Share price ÷ FCFE per share
= 22.29 ÷ 1.23 = 18.08

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. HP Inc. P/FCFE ratio decreased from 2016 to 2017 but then slightly increased from 2017 to 2018.