Invesaro

Stocks HPQ DCF valuation

DCF valuation

What is HP Inc worth?

With the base-case assumptions below, a discounted cash flow model on HP Inc's reported free cash flow gives $33.50 per share. The share price was $31.30 on September 25, 2026, 7% below that value.

Inputs from the filings

Free cash flow, fiscal 2025
$2.8B
Average free cash flow, last 5 years
$3.69B
Cash
$4.17B
balance sheet of July 31, 2026
Debt
$9.2B
balance sheet of July 31, 2026
Diluted shares, fiscal 2025
953,000,000
Revenue growth per year, last 5 years
-0.5%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear-5.5%-2.0%2.0%10.0%$19.02-39%
Base-0.5%1.0%2.5%9.0%$33.50+7%
Bull4.5%4.0%3.0%8.0%$61.69+97%

Sensitivity: base case value per share

Discount rate down the side, growth after year 10 across the top. Everything else as in the base case.

1.5%2.0%2.5%3.0%3.5%
7.0%$43.47$46.45$50.09$54.64$60.49
8.0%$36.08$38.01$40.29$43.03$46.38
9.0%$30.66$31.98$33.50$35.28$37.38
10.0%$26.50$27.44$28.51$29.72$31.13
11.0%$23.22$23.91$24.68$25.55$26.53

Where the presets come from

Base: years 1 to 5 grow at HP Inc's revenue growth rate over the last 5 fiscal years (-0.5% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.

Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.

Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.

This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.

Adjust the assumptions

Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.

Adjust the assumptions

HP Inc company page