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HP (XTER:7HP) Cyclically Adjusted Price-to-FCF : 9.31 (As of May. 19, 2024)


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What is HP Cyclically Adjusted Price-to-FCF?

As of today (2024-05-19), HP's current share price is €28.66. HP's Cyclically Adjusted FCF per Share for the quarter that ended in Jan. 2024 was €3.08. HP's Cyclically Adjusted Price-to-FCF for today is 9.31.

The historical rank and industry rank for HP's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

XTER:7HP' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 2.55   Med: 5.89   Max: 11.33
Current: 9.48

During the past years, HP's highest Cyclically Adjusted Price-to-FCF was 11.33. The lowest was 2.55. And the median was 5.89.

XTER:7HP's Cyclically Adjusted Price-to-FCF is ranked better than
87.81% of 960 companies
in the Hardware industry
Industry Median: 29.78 vs XTER:7HP: 9.48

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

HP's adjusted free cash flow per share data for the three months ended in Jan. 2024 was €-0.034. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is €3.08 for the trailing ten years ended in Jan. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


HP Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for HP's Cyclically Adjusted Price-to-FCF 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 Cyclically Adjusted Price-to-FCF Chart

HP Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.32 5.65 8.90 7.72 7.70

HP Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Cyclically Adjusted Price-to-FCF 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 8.46 8.85 9.81 7.70 8.73

Competitive Comparison of HP's Cyclically Adjusted Price-to-FCF

For the Computer Hardware subindustry, HP's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF 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 Cyclically Adjusted Price-to-FCF Distribution in the Hardware Industry

For the Hardware industry and Technology sector, HP's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where HP's Cyclically Adjusted Price-to-FCF falls into.



HP Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

HP's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=28.66/3.08
=9.31

* 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's Cyclically Adjusted FCF per Share for the quarter that ended in Jan. 2024 is calculated as:

For example, HP's adjusted Free Cash Flow per Share data for the three months ended in Jan. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Jan. 2024 (Change)*Current CPI (Jan. 2024)
=-0.034/130.1244*130.1244
=-0.034

Current CPI (Jan. 2024) = 130.1244.

HP Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201404 0.814 100.023 1.059
201407 1.007 100.520 1.304
201410 0.721 100.176 0.937
201501 -0.094 98.604 -0.124
201504 0.345 99.824 0.450
201507 0.376 100.691 0.486
201510 1.070 100.346 1.388
201601 -0.115 99.957 -0.150
201604 0.760 100.947 0.980
201607 0.519 101.524 0.665
201610 0.293 101.988 0.374
201701 0.364 102.456 0.462
201704 0.207 103.167 0.261
201707 0.877 103.278 1.105
201710 0.259 104.070 0.324
201801 0.426 104.578 0.530
201804 0.464 105.708 0.571
201807 0.739 106.324 0.904
201810 0.424 106.695 0.517
201901 0.376 106.200 0.461
201904 0.433 107.818 0.523
201907 1.284 108.250 1.543
201910 0.239 108.577 0.286
202001 0.671 108.841 0.802
202004 -0.421 108.173 -0.506
202007 0.948 109.318 1.128
202010 1.101 109.861 1.304
202101 0.566 110.364 0.667
202104 0.888 112.673 1.026
202107 0.660 115.183 0.746
202110 2.025 116.696 2.258
202201 1.118 118.619 1.226
202204 0.288 121.978 0.307
202207 0.188 125.002 0.196
202210 1.772 125.734 1.834
202301 -0.194 126.223 -0.200
202304 0.462 127.992 0.470
202307 0.757 128.974 0.764
202310 1.723 129.810 1.727
202401 -0.034 130.124 -0.034

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


HP  (XTER:7HP) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


HP Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of HP's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


HP (XTER:7HP) Business Description

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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 U.S. It completely outsources manufacturing and relies heavily on channel partners for its sales and marketing.

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