Discounted Cash Flow (DCF) Analysis Levered

HP Inc. (HPQ)

$29.795

-0.20 (-0.68%)
All numbers are in Millions, Currency in USD
Stock DCF: 83.49 | 29.795 | undervalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 58,47258,75656,63963,48762,98364,270.9165,585.1666,926.2868,294.8269,691.35
Revenue (%)
Operating Cash Flow 4,5284,6544,3166,4094,4635,201.575,307.945,416.475,527.235,640.26
Operating Cash Flow (%)
Capital Expenditure -546-671-580-582-791-677.73-691.59-705.73-720.16-734.89
Capital Expenditure (%)
Free Cash Flow 3,9823,9833,7365,8273,6724,523.844,616.354,710.754,807.074,905.37

Weighted Average Cost Of Capital

Share price $ 29.795
Beta 1.026
Diluted Shares Outstanding 1,050
Cost of Debt
Tax Rate 27.88
After-tax Cost of Debt 2.11%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.483
Total Debt 12,294
Total Equity 31,284.75
Total Capital 43,578.75
Debt Weighting 28.21
Equity Weighting 71.79
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 58,47258,75656,63963,48762,98364,270.9165,585.1666,926.2868,294.8269,691.35
Operating Cash Flow 4,5284,6544,3166,4094,4635,201.575,307.945,416.475,527.235,640.26
Capital Expenditure -546-671-580-582-791-677.73-691.59-705.73-720.16-734.89
Free Cash Flow 3,9823,9833,7365,8273,6724,523.844,616.354,710.754,807.074,905.37
WACC
PV LFCF 4,240.574,056.323,880.083,711.493,550.23
SUM PV LFCF 19,438.70

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.68
Free cash flow (t + 1) 5,003.48
Terminal Value 106,911.92
Present Value of Terminal Value 77,376.86

Intrinsic Value

Enterprise Value 96,815.56
Net Debt 9,149
Equity Value 87,666.56
Shares Outstanding 1,050
Equity Value Per Share 83.49