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HP (XTER:7HP) Peter Lynch Fair Value : €56.56 (As of Dec. 13, 2024)


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What is HP Peter Lynch Fair Value?

Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year. Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years. If 5-Year Growth Rate is greater than 25% a year, we use 25. If 5-Year Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.

Here, as of today, HP's PEG is 1. HP's 5-Year TTM EBITDA Growth Rate is 18.76. HP's EPS without NRI for the trailing twelve months (TTM) ended in Oct. 2024 was €3.02. Therefore, the Peter Lynch Fair Value for today is €56.56.

As of today (2024-12-13), HP's share price is €33.22. HP's Peter Lynch fair value is €56.56. Therefore, HP's Price to Peter Lynch Fair Value Ratio for today is 0.59.


The historical rank and industry rank for HP's Peter Lynch Fair Value or its related term are showing as below:

XTER:7HP' s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 0.27   Med: 0.46   Max: 0.73
Current: 0.72


During the past 13 years, the highest Price to Peter Lynch Fair Value Ratio of HP was 0.73. The lowest was 0.27. And the median was 0.46.


XTER:7HP's Price-to-Peter-Lynch-Fair-Value is ranked better than
76.14% of 700 companies
in the Hardware industry
Industry Median: 1.355 vs XTER:7HP: 0.72

Note: Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart.


HP Peter Lynch Fair Value Historical Data

The historical data trend for HP's Peter Lynch Fair Value can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

HP Peter Lynch Fair Value Chart

HP Annual Data
Trend Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24
Peter Lynch Fair Value
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 46.36 103.61 69.31 46.09

HP Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
Peter Lynch Fair Value Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 69.31 61.42 55.69 50.82 46.09

Competitive Comparison of HP's Peter Lynch Fair Value

For the Computer Hardware subindustry, HP's Price-to-Peter-Lynch-Fair-Value, along with its competitors' market caps and Price-to-Peter-Lynch-Fair-Value data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


HP's Price-to-Peter-Lynch-Fair-Value Distribution in the Hardware Industry

For the Hardware industry and Technology sector, HP's Price-to-Peter-Lynch-Fair-Value distribution charts can be found below:

* The bar in red indicates where HP's Price-to-Peter-Lynch-Fair-Value falls into.



HP Peter Lynch Fair Value Calculation

HP's Peter Lynch Fair Value for today is calculated as

Peter Lynch Fair Value=PEG Ratio*5-Year TTM EBITDA Growth Rate***EPS without NRI (TTM)
=1* 18.76 *3.015
=56.56

HP's EPS without NRI for the trailing twelve months (TTM) ended in Oct. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was €3.02.


* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** Please be aware that the 5-Year TTM EBITDA Growth Rate is calculated based on TTM data over the last 5 years. For quarterly reported companies, the TTM data adds up the quarterly data reported by the company within the most recent 12 months. For companies that report semi-annually, annually, or do not have enough quarterly data, GuruFocus uses the annual data as the TTM data.

If 5-Year Earnings Growth Rate is greater than 25% a year, we use 25.

If 5-Year Earnings Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.

Please note that we use the 5-year average growth rate of EBITDA per share as the growth rate for non-bank companies, as EBITDA growth is subject to less manipulations than net earnings per share. For banks, we use the 5-year average growth rate of Book Value per share as the growth rate. The reason is that EBITDA is not applicable to Banks and Book value is a relative important measurement for Banks. In the calculation, PEG=1 because Peter Lynch thinks that the fair P/E ratio of the growth stock is equal to its earnings growth rate.


HP  (XTER:7HP) Peter Lynch Fair Value Explanation

Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year.

Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years.

Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart. In Peter Lynch chart, a fixed P/E ratio of 15 is used to draw the Earnings Line. Therefore the value reached has a P/E ratio of 15. But in Peter Lynch Fair Value calculation, P/E equals to the growth rate of EBITDA per share over the past 5 years, which is 18.76 instead of 15 in this case.

HP's Price to Peter Lynch Fair Value Ratio for today is calculated as

Price to Peter Lynch Fair Value=Share Price/Peter Lynch Fair Value
=33.22/56.56
=0.59

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


HP Peter Lynch Fair Value Related Terms

Thank you for viewing the detailed overview of HP's Peter Lynch Fair Value provided by GuruFocus.com. Please click on the following links to see related term pages.


HP Business Description

Industry
Address
1501 Page Mill Road, Palo Alto, CA, USA, 94304
HP (formerly Hewlett-Packard) is a behemoth in the PC and printing markets. It has focused on these markets since it exited IT infrastructure in 2015 with the split from Hewlett Packard Enterprise. HP focuses on the commercial market, but maintains sales of consumer devices and printers. The firm has a broad and global customer base, with only one third of sales coming from the US. HP completely outsources manufacturing and relies heavily on channel partners for its sales and marketing.

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