Latest Ratios: P/E Ratio 12.1x · EV/EBITDA 8.0x · 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 | $29.3B | $26.4B | $35.1B | $26.3B | $29.0B | $37.0B | $25.5B | $26.5B | $39.4B | $36.7B | $25.3B |
| Enterprise Value | $36.5B | $33.6B | $42.8B | $34.0B | $38.1B | $41.5B | $28.0B | $27.1B | $40.3B | $37.5B | $25.8B |
| P/E Ratio → | 12.09 | 10.44 | 12.64 | 8.08 | 9.27 | 5.66 | 8.98 | 8.39 | 7.40 | 14.56 | 10.13 |
| P/S Ratio | 0.53 | 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 | 10.46 | 9.42 | 11.13 | 8.89 | 7.90 | 6.35 | 6.83 | 6.65 | 9.91 | 11.20 | 9.03 |
| P/OCF | 7.93 | 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 | 8.04 | 7.39 | 9.21 | 7.89 | 7.15 | 6.75 | 6.63 | 5.86 | 9.24 | 10.08 | 6.64 |
| EV / EBIT | 10.07 | 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 | 3.6% | 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 | 8.3% | 9.6% | 7.9% | 12.4% | 10.8% | 17.7% | 11.1% | 11.9% | 13.5% | 6.9% | 9.9% |
| FCF Yield | 9.6% | 10.6% | 9.0% | 11.2% | 12.7% | 15.7% | 14.6% | 15.0% | 10.1% | 8.9% | 11.1% |
| Buyback Yield | 2.9% | 3.2% | 6.0% | 0.4% | 14.8% | 16.9% | 12.2% | 9.1% | 6.5% | 3.8% | 4.6% |
| Total Shareholder Yield | 6.5% | 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 |
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 12.1x. The historical average is 8.9x. This places it at the 82th percentile of its historical range.
HP Inc.'s current EV/EBITDA is 8.0x. 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 12.1x. This is at the 82th 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 3.56% 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.
Key Metrics
Top Statement Risk
Margin compression from hardware mix
Metrics are mathematically derived from official filings.
Value Pricing Reflects Mature Hardware Profile
HPQ trades at a significant discount to its technology peers, with a forward P/E of 10.0x and EV/EBITDA of 7.52x, suggesting the market prices it as a mature, cash-generative utility rather than a growth innovator.
The valuation multiples, particularly the P/E of 11.52x TTM and P/S of 0.50x, are deeply discounted compared to peers like Dell (52.52x P/E) and Apple (42.86x P/E). This implies the market assigns minimal value to HPQ's future growth, likely due to its cyclical hardware exposure and compressed margins. The PEG ratio of 1.99 indicates that even the modest growth expected is not considered cheap relative to the earnings multiple, reinforcing a value-oriented investment thesis.
Gross Margin Erosion Undermines Core Earning Power
HPQ's gross margin has contracted by 480 basis points from 23.6% in 2024Q2 to 18.8% in 2026Q3, a trend that suggests the current revenue acceleration is being driven by lower-margin product categories or increased promotional activity.
The decline in gross margin is the most critical profitability metric, as it directly impacts the company's ability to fund operations and shareholder returns. The operating margin of 5.7% in 2026Q3, while stable, is being supported by cost discipline rather than structural improvement. This margin profile indicates that HPQ's true earning power is under pressure, and the recent revenue growth may not be translating into sustainable profit expansion.
ROIC Volatility Highlights Capital Allocation Challenges
HPQ's ROIC has fluctuated between 6.6% and 11.7% over the past ten quarters, with the most recent reading of 11.2% in 2026Q3 suggesting a recovery, but the inconsistency indicates challenges in generating stable returns on invested capital.
The volatility in ROIC, which is driven by both margin fluctuations and changes in invested capital, suggests that HPQ's capital allocation strategy is not generating consistent returns. The current ROIC of 11.2% is above the company's cost of capital, but the historical pattern of sharp swings indicates that this level may not be sustainable. This inconsistency makes it difficult to assess the long-term compounding potential of the business.
High Leverage Constrains Strategic Flexibility
HPQ's D/EBITDA ratio has increased from 9.33x in 2024Q2 to 11.36x in 2026Q3, indicating that debt levels are rising relative to earnings, which may limit the company's ability to invest in growth initiatives or weather economic downturns.
The rising leverage ratio, combined with a negative equity position, suggests that HPQ is relying heavily on debt to fund its operations and shareholder returns. While the interest coverage ratio of 8.12x indicates that the company can currently service its debt, the trend is concerning. This financial structure increases vulnerability to rising interest rates and economic slowdowns, as the company has limited flexibility to adjust its capital structure.
Tight Liquidity Managed by Cash Generation
HPQ's current ratio of 0.79 in 2026Q3 indicates that current liabilities exceed current assets, a position that requires continuous cash generation and access to credit facilities to meet short-term obligations.
The liquidity position is tight but has improved modestly from 0.72 in 2024Q4. The quick ratio of 0.48 suggests that the company has limited liquid assets relative to its short-term liabilities, making it dependent on inventory turnover and receivables collection. This structure works in normal times but could become problematic during a severe demand downturn or credit market stress.
The Misleading Nature of P/E in a Buyback-Heavy Model
The P/E ratio is the most commonly misapplied metric for HPQ because aggressive share repurchases artificially inflate EPS, decoupling the multiple from underlying operational performance and masking the true earnings power of the business.
HPQ's capital allocation strategy prioritizes returning cash to shareholders via buybacks, which reduces the share count and boosts EPS even when net income is flat or declining. This makes the P/E ratio appear more attractive than the underlying business fundamentals warrant. A more appropriate metric for assessing valuation would be EV/EBITDA or P/FCF, which are less distorted by capital structure decisions and provide a clearer view of the company's cash-generating ability relative to its enterprise value.