HP Inc. (HPQ) Financial Ratios
30 years of historical data (1996–2025) · Technology · Computer Hardware
EV/EBITDA
↑
6.32
↓-18% vs avg
5yr avg: 7.68
30Y Low2.7·High13.1
P/FCF
↑
7.68
↓-12% vs avg
5yr avg: 8.74
30Y Low1.8·High16.3
P/B Ratio
N/A
—
5yr avg: N/A
30Y Low0.5·High3.1
ROE
N/A
—
5yr avg: N/A
30Y Low-41%·High23%
Debt/EBITDA
↑
2.40
+9% vs avg
5yr avg: 2.19
30Y Low0.6·High7.1
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
HPQ Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
HP Inc. trades at 8.9x earnings, roughly in line with its 5-year average of 9.2x, sitting at the 64th percentile of its historical range. Compared to the Technology sector median P/E of 29.0x, the stock trades at a discount of 69%. On a free-cash-flow basis, the stock trades at 7.7x P/FCF, 12% below the 5-year average of 8.7x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $21.5B | $26.4B | $35.1B | $26.3B | $29.0B | $37.0B | $25.5B | $26.5B | $39.4B | $36.7B | $25.3B |
| Enterprise Value | $28.7B | $33.6B | $42.8B | $34.0B | $38.1B | $41.5B | $28.0B | $27.1B | $40.3B | $37.5B | $25.8B |
| P/E Ratio → | 8.87 | 10.44 | 12.64 | 8.08 | 9.27 | 5.66 | 8.98 | 8.39 | 7.40 | 14.56 | 10.13 |
| P/S Ratio | 0.39 | 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 | 7.68 | 9.42 | 11.13 | 8.89 | 7.90 | 6.35 | 6.83 | 6.65 | 9.91 | 11.20 | 9.03 |
| P/OCF | 5.81 | 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
HPQ EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
HP Inc.'s enterprise value stands at 6.3x EBITDA, 18% below its 5-year average of 7.7x. The Technology sector median is 16.7x, placing the stock at a 62% discount on an enterprise-value basis.
| 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 | 6.32 | 7.39 | 9.21 | 7.89 | 7.15 | 6.75 | 6.63 | 5.86 | 9.24 | 10.08 | 6.64 |
| EV / EBIT | 7.91 | 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 |
HPQ Profitability
Margins and return-on-capital ratios measuring operating efficiency
HP Inc. earns an operating margin of 6.6%. ROIC of 41.2% represents excellent returns on invested capital.
Margins
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% |
Return on Capital
| 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% |
HPQ Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
HP Inc. carries a Debt/EBITDA ratio of 2.4x, which is manageable (19% below the sector average of 2.9x). Net debt stands at $7.2B ($10.9B total debt minus $3.7B cash). Interest coverage of 6.3x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| 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 |
HPQ Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.77x is below 1.0, meaning current liabilities exceed current assets — though the company's $3.7B cash position helps mitigate short-term liquidity concerns.
| 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 |
HPQ Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
HP Inc. returns 8.8% to shareholders annually — split between a 4.9% dividend yield and 4.0% buyback yield. A payout ratio of 43.0% is moderate and appears sustainable, balancing shareholder returns with reinvestment capacity. The earnings yield of 11.3% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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 | 4.9% | 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% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 11.3% | 9.6% | 7.9% | 12.4% | 10.8% | 17.7% | 11.1% | 11.9% | 13.5% | 6.9% | 9.9% |
| FCF Yield | 13.0% | 10.6% | 9.0% | 11.2% | 12.7% | 15.7% | 14.6% | 15.0% | 10.1% | 8.9% | 11.1% |
| Buyback Yield | 4.0% | 3.2% | 6.0% | 0.4% | 14.8% | 16.9% | 12.2% | 9.1% | 6.5% | 3.8% | 4.6% |
| Total Shareholder Yield | 8.8% | 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 |
Peer Comparison
Compare HPQ with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 HPQYou | $21B | 8.9 | 6.3 | 7.7 | 20.0% | 6.6% | — | 41.2% | 2.4 |
 DELL | $272B | 47.2 | 25.5 | 31.8 | 20.0% | 7.4% | — | 34.2% | 2.7 |
 AAPL | $4.4T | 39.9 | 30.8 | 44.3 | 46.9% | 32.0% | 171.4% | 67.4% | 0.8 |
 MSFT | $2.8T | 27.8 | 17.8 | 39.4 | 68.8% | 45.6% | 33.3% | 24.9% | 0.7 |
 XRX | $395M | -0.4 | 15.0 | 1.5 | 27.1% | -0.8% | -104.1% | -1.0% | 15.4 |
 INTC | $673B | -2274.9 | 60.4 | — | 34.8% | -0.0% | -0.2% | -0.0% | 4.0 |
 AMD | $876B | 202.8 | 130.6 | 130.1 | 49.5% | 10.7% | 7.2% | 4.7% | 0.7 |
 NVDA | $5.1T | 43.0 | 38.3 | 52.8 | 71.1% | 60.4% | 101.5% | 81.8% | 0.1 |
 MU | $1.3T | 149.4 | 70.5 | 766.9 | 39.8% | 26.4% | 17.2% | 13.2% | 0.8 |
 AVGO | $2.0T | 86.2 | 58.6 | 72.7 | 67.8% | 39.9% | 31.0% | 14.9% | 1.9 |
 QCOM | $238B | 45.1 | 17.7 | 18.6 | 55.4% | 27.9% | 23.3% | 29.1% | 1.2 |
| Technology Median | — | 29.0 | 16.7 | 19.2 | 48.8% | 0.2% | 1.6% | 2.7% | 2.9 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
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HPQ — Frequently Asked Questions
Quick answers to the most common questions about buying HPQ stock.
What is HP Inc.'s P/E ratio?
HP Inc.'s current P/E ratio is 8.9x. The historical average is 8.9x. This places it at the 64th percentile of its historical range.
What is HP Inc.'s EV/EBITDA?
HP Inc.'s current EV/EBITDA is 6.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 5.9x.
Is HPQ stock overvalued?
Based on historical data, HP Inc. is trading at a P/E of 8.9x. This is at the 64th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is HP Inc.'s dividend yield?
HP Inc.'s current dividend yield is 4.86% with a payout ratio of 43.0%.
What are HP Inc.'s profit margins?
HP Inc. has 20.0% gross margin and 6.6% operating margin.
How much debt does HP Inc. have?
HP Inc.'s Debt/EBITDA ratio is 2.4x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.