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How does this work?
A valuation is an assessment of the value of one share in a company, it is not necessarily the same as the price listed in the sharemarket. You can use a variety of methods to value a company, Valuecruncher uses Discounted Cash Flow (DCF) analysis to help people create the valuations you see below.
Valuecruncher Valuation
63.54%
from latest share price
Your Valuation
| Valuation | Compared to price | Member |
 Created
|
Views |
|---|---|---|---|---|
| $56.65 |
63.54%
|
Valuecruncher | 23 Nov 2008 | 0 |
| $39.08 |
16.34%
|
dweis | 19 Nov 2008 | 3 |
| $55.38 |
24.56%
|
TheCrunchBlog | 05 Sep 2008 | 157 |
| $45.06 |
 -3.94%
|
GordonGekko | 30 May 2008 | 51 |
Price History
Recent Comments
| Updated: | 2 hours ago |
| Ticker: | HPQ |
| Market: | NYSE |
This valuation is part of this blog post:
http://blog.valuecruncher.com/2008/09/running-the-numbers-hewlett-packard-hpq-looks-cheap/
HPQ grew revenues from US$79.9 billion in 2004 to US$104.3 billion in 2007 – a 9.0% compound annual growth rate. Our assumptions of revenues for the next three years are US$115.0 billion in 2008 growing to US$135.0 billion in 2010 – a 9.3% compound annual growth rate. We have projected EBITDA margins to grow from 12.5% in 2008 to 13.0% in 2010. We have used a terminal growth rate of 3.5%. We used a terminal capital expenditure number of US$4.0 billion. We have used a WACC (discount rate) of 10%.
Key assumptions as we see them are:
HPQ terminal growth rate of 3.5%. We believe this long-term growth rate could be anywhere between 3% and 4-4.5%. We have taken 3.5% as a mid-point terminal growth rate.
HPQ WACC of 10%. We believe that HPQ’s WACC (discount rate) is in the 9-11% range. Again we have taken a mid-point.