Latest Ratios: P/E Ratio 8.5x · EV/EBITDA 6.1x · ROE N/A. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $20.7B | $26.4B | $35.1B | $26.3B | $29.0B | $37.0B | $25.5B | $26.5B | $39.4B | $36.7B | $25.3B |
| Enterprise Value | $27.9B | $33.6B | $42.8B | $34.0B | $38.1B | $41.5B | $28.0B | $27.1B | $40.3B | $37.5B | $25.8B |
| P/E Ratio → | 8.53 | 10.44 | 12.64 | 8.08 | 9.27 | 5.66 | 8.98 | 8.39 | 7.40 | 14.56 | 10.13 |
| P/S Ratio | 0.37 | 0.48 | 0.66 | 0.49 | 0.46 | 0.58 | 0.45 | 0.45 | 0.67 | 0.70 | 0.52 |
| P/B Ratio | — | — | — | — | — | — | — | — | — | — | — |
| P/FCF | 7.38 | 9.42 | 11.13 | 8.89 | 7.90 | 6.35 | 6.83 | 6.65 | 9.91 | 11.20 | 9.03 |
| P/OCF | 5.59 | 7.13 | 9.37 | 7.37 | 6.50 | 5.77 | 5.91 | 5.69 | 8.71 | 9.98 | 7.82 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.61 | 0.80 | 0.63 | 0.61 | 0.65 | 0.49 | 0.46 | 0.69 | 0.72 | 0.53 |
| EV / EBITDA | 6.14 | 7.39 | 9.21 | 7.89 | 7.15 | 6.75 | 6.63 | 5.86 | 9.24 | 10.08 | 6.64 |
| EV / EBIT | 7.69 | 10.57 | 11.01 | 9.38 | 8.15 | 5.30 | 8.13 | 9.79 | 12.11 | 10.46 | 6.39 |
| EV / FCF | — | 11.99 | 13.55 | 11.47 | 10.39 | 7.12 | 7.50 | 6.80 | 10.11 | 11.45 | 9.22 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 20.0% | 20.0% | 22.1% | 21.4% | 19.5% | 21.1% | 18.4% | 19.0% | 18.2% | 18.4% | 18.7% |
| Operating Margin | 6.6% | 6.6% | 7.1% | 6.4% | 7.2% | 8.4% | 6.1% | 6.6% | 6.6% | 6.5% | 7.4% |
| Net Profit Margin | 4.6% | 4.6% | 5.2% | 6.1% | 5.0% | 10.3% | 5.0% | 5.4% | 9.1% | 4.9% | 5.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | — | — | — | — | — | — | — | — | — | — | 20.6% |
| ROA | 6.2% | 6.2% | 7.2% | 8.6% | 8.1% | 17.9% | 8.3% | 9.3% | 15.8% | 8.2% | 3.7% |
| ROIC | 41.2% | 41.2% | 44.4% | 40.9% | 76.3% | 256.1% | 849.2% | — | 1578.7% | — | 20.4% |
| ROCE | 30.5% | 30.5% | 32.2% | 27.8% | 41.8% | 59.6% | 41.4% | 43.9% | 38.3% | 32.5% | 9.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | — | — | — | — | — | — | — | — | — | — | — |
| Debt / EBITDA | 2.40 | 2.40 | 2.34 | 2.49 | 2.30 | 1.43 | 1.75 | 1.11 | 1.37 | 2.10 | 1.76 |
| Net Debt / Equity | — | — | — | — | — | — | — | — | — | — | — |
| Net Debt / EBITDA | 1.58 | 1.58 | 1.65 | 1.77 | 1.71 | 0.73 | 0.60 | 0.13 | 0.19 | 0.22 | 0.14 |
| Debt / FCF | — | 2.57 | 2.43 | 2.58 | 2.49 | 0.77 | 0.68 | 0.15 | 0.21 | 0.25 | 0.19 |
| Interest Coverage | 6.27 | 6.27 | 6.40 | 5.29 | 13.04 | 30.80 | 14.44 | 11.43 | 10.66 | 11.60 | 14.78 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.77 | 0.77 | 0.72 | 0.73 | 0.75 | 0.76 | 0.79 | 0.80 | 0.85 | 1.00 | 0.98 |
| Quick Ratio | 0.48 | 0.48 | 0.45 | 0.45 | 0.46 | 0.49 | 0.56 | 0.57 | 0.61 | 0.74 | 0.74 |
| Cash Ratio | 0.13 | 0.13 | 0.11 | 0.13 | 0.12 | 0.15 | 0.20 | 0.18 | 0.23 | 0.36 | 0.33 |
| Asset Turnover | — | 1.32 | 1.34 | 1.45 | 1.63 | 1.64 | 1.63 | 1.76 | 1.69 | 1.58 | 1.66 |
| Inventory Turnover | 5.20 | 5.20 | 5.41 | 6.15 | 6.65 | 6.31 | 7.75 | 8.30 | 7.89 | 7.34 | 8.75 |
| Days Sales Outstanding | — | 57.16 | 56.73 | 43.74 | 39.98 | 51.04 | 54.41 | 55.53 | 49.96 | 50.22 | 50.01 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 5.1% | 4.1% | 3.1% | 3.9% | 3.6% | 2.5% | 3.9% | 3.7% | 2.3% | 2.4% | 3.4% |
| Payout Ratio | 43.0% | 43.0% | 38.7% | 31.8% | 33.1% | 14.3% | 35.4% | 30.8% | 16.9% | 35.4% | 34.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 11.7% | 9.6% | 7.9% | 12.4% | 10.8% | 17.7% | 11.1% | 11.9% | 13.5% | 6.9% | 9.9% |
| FCF Yield | 13.5% | 10.6% | 9.0% | 11.2% | 12.7% | 15.7% | 14.6% | 15.0% | 10.1% | 8.9% | 11.1% |
| Buyback Yield | 4.1% | 3.2% | 6.0% | 0.4% | 14.8% | 16.9% | 12.2% | 9.1% | 6.5% | 3.8% | 4.6% |
| Total Shareholder Yield | 9.2% | 7.3% | 9.0% | 4.3% | 18.4% | 19.4% | 16.1% | 12.7% | 8.8% | 6.3% | 8.0% |
| Shares Outstanding | — | $953M | $989M | $1.0B | $1.1B | $1.2B | $1.4B | $1.5B | $1.6B | $1.7B | $1.7B |
Negative equity and leverage
According to current market data, HPQ trades at a forward P/E of 7.57, which significantly discounts the company relative to broader technology peers, suggesting that investors are pricing in long-term structural decline rather than the potential upside from AI-integrated hardware refreshes or subscription-based revenue growth.
The low valuation multiples, including an EV/EBITDA of 6.19, imply that the market views HPQ as a mature, cash-generative utility rather than a growth-oriented technology firm. This valuation gap warrants further investigation into whether the market is correctly discounting the risks to the printing segment or if the stock is fundamentally mispriced given its consistent dividend yield.
Based on reported financial figures, HPQ's ROIC has fluctuated between 6.6% and 11.7% over the last ten quarters, indicating that the company is struggling to consistently compound returns on invested capital amidst a challenging hardware environment and significant reliance on share repurchases to drive per-share metrics.
The volatility in ROIC suggests that operational efficiency is highly sensitive to product mix shifts and commodity cost fluctuations. Investors should monitor whether the company can sustain returns above its cost of capital, particularly as it continues to prioritize shareholder returns over internal reinvestment in innovation.
As reported in recent quarterly filings, HPQ's cash conversion cycle has remained negative, reaching -30 days in 2026Q2, which suggests that the company effectively utilizes its supplier leverage to manage working capital despite the inherent volatility in its inventory and receivables management processes.
While a negative CCC is generally a sign of operational strength, the reliance on extended DPO to offset inventory and DSO fluctuations may limit future flexibility. This structural dependence on supplier terms warrants monitoring, as any shift in vendor relationships could immediately pressure the company's already tight liquidity position.
According to recent financial statements, HPQ's debt-to-EBITDA ratio has fluctuated between 8.48 and 13.87 over the last ten quarters, indicating that the company's ability to service its debt is becoming increasingly strained as operating income remains volatile and equity remains in a persistent deficit.
The lack of a positive equity base complicates traditional leverage analysis, making interest coverage ratios the primary indicator of solvency risk. Investors should be cautious, as the current debt load appears high relative to the company's ability to generate stable, recurring operating cash flows.
As indicated by the company's financial history, the Price-to-Book ratio is a fundamentally misapplied metric for HPQ, as the firm's aggressive share repurchase strategy has resulted in a persistent negative equity position that renders traditional book value analysis entirely meaningless for assessing valuation.
Relying on P/B for a company that has effectively hollowed out its equity base through capital returns obscures the true financial health of the business. Analysts should instead focus on free cash flow yield or EV/EBITDA to better understand the company's valuation relative to its actual cash-generating capacity.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying HPQ stock.
HP Inc.'s current P/E ratio is 8.5x. The historical average is 8.9x. This places it at the 61th percentile of its historical range.
HP Inc.'s current EV/EBITDA is 6.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 5.9x.
Based on historical data, HP Inc. is trading at a P/E of 8.5x. This is at the 61th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
HP Inc.'s current dividend yield is 5.05% with a payout ratio of 43.0%.
HP Inc. has 20.0% gross margin and 6.6% operating margin.
HP Inc.'s Debt/EBITDA ratio is 2.4x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.