Discounted Cash Flow (DCF) Analysis Levered

HP Inc. (HPQ)

$28.83

+0.03 (+0.10%)
All numbers are in Millions, Currency in USD
Stock DCF: 35.61 | 28.83 | undervalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 58,75656,63963,48762,98353,71852,775.7051,849.9450,940.4150,046.8449,168.94
Revenue (%)
Operating Cash Flow 4,6544,3166,4094,4633,5714,155.544,082.644,011.033,940.673,871.54
Operating Cash Flow (%)
Capital Expenditure -671-580-582-791-609-577.61-567.48-557.53-547.75-538.14
Capital Expenditure (%)
Free Cash Flow 3,9833,7365,8273,6722,9623,577.923,515.163,453.503,392.923,333.40

Weighted Average Cost Of Capital

Share price $ 28.83
Beta 1.056
Diluted Shares Outstanding 1,000
Cost of Debt
Tax Rate -11.10
After-tax Cost of Debt 5.78%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.306
Total Debt 9,484
Total Equity 28,830
Total Capital 38,314
Debt Weighting 24.75
Equity Weighting 75.25
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 58,75656,63963,48762,98353,71852,775.7051,849.9450,940.4150,046.8449,168.94
Operating Cash Flow 4,6544,3166,4094,4633,5714,155.544,082.644,011.033,940.673,871.54
Capital Expenditure -671-580-582-791-609-577.61-567.48-557.53-547.75-538.14
Free Cash Flow 3,9833,7365,8273,6722,9623,577.923,515.163,453.503,392.923,333.40
WACC
PV LFCF 3,299.752,989.832,709.012,454.572,224.03
SUM PV LFCF 13,677.19

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.43
Free cash flow (t + 1) 3,350.07
Terminal Value 42,245.50
Present Value of Terminal Value 28,185.98

Intrinsic Value

Enterprise Value 41,863.17
Net Debt 6,252
Equity Value 35,611.17
Shares Outstanding 1,000
Equity Value Per Share 35.61