Discounted Cash Flow (DCF) Analysis Levered
HP Inc. (HPQ)
$29.795
-0.20 (-0.68%)
All numbers are in Millions, Currency in USD
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 | 58,472 | 58,756 | 56,639 | 63,487 | 62,983 | 64,270.91 | 65,585.16 | 66,926.28 | 68,294.82 | 69,691.35 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 4,528 | 4,654 | 4,316 | 6,409 | 4,463 | 5,201.57 | 5,307.94 | 5,416.47 | 5,527.23 | 5,640.26 |
| 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 | 3,982 | 3,983 | 3,736 | 5,827 | 3,672 | 4,523.84 | 4,616.35 | 4,710.75 | 4,807.07 | 4,905.37 |
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 | 58,472 | 58,756 | 56,639 | 63,487 | 62,983 | 64,270.91 | 65,585.16 | 66,926.28 | 68,294.82 | 69,691.35 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 4,528 | 4,654 | 4,316 | 6,409 | 4,463 | 5,201.57 | 5,307.94 | 5,416.47 | 5,527.23 | 5,640.26 |
| Capital Expenditure | -546 | -671 | -580 | -582 | -791 | -677.73 | -691.59 | -705.73 | -720.16 | -734.89 |
| Free Cash Flow | 3,982 | 3,983 | 3,736 | 5,827 | 3,672 | 4,523.84 | 4,616.35 | 4,710.75 | 4,807.07 | 4,905.37 |
| WACC | ||||||||||
| PV LFCF | 4,240.57 | 4,056.32 | 3,880.08 | 3,711.49 | 3,550.23 | |||||
| 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 |