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A Financial Valuation of Hewlett-Packard Inc. (NYSE: HPQ)

Resource type
Authors/contributors
Title
A Financial Valuation of Hewlett-Packard Inc. (NYSE: HPQ)
Abstract
As one of the world's leading technology companies, HP occupies an essential position in the printer and personal system markets. In order to analyze HP's current market value and predict its future financial performance, this thesis values HP by applying three models: EDCF, DEP, and APV. Based on the financial statement from 2019 to 2023, this thesis conducts a common size analysis of the financial data to facilitate the comparison between various indicators. HP's asset structure and profitability are analyzed and the company's beta is also tested. To analyze HP's position and environment in the technology industry, Dell Inc. will be analyzed as its main competitor. At the same time, the intrinsic value of HP is estimated based on the financial statements for the next ten years which is predicted. The valuation results are compared with HP's stock price at the end of 2023 to determine whether HP's stock price is overvalued or undervalued. In order to improve the accuracy of the valuation, sensitivity analysis is also used to evaluate the impact of variables such as internal factors and external market factors on the company's value. Studies have shown that HP's intrinsic value is greatly affected by the market risk premium. This thesis also uses SWOT and PESTEL to analyze the company's strengths, weaknesses and operating environment which will help to identify the company's competitiveness. It also helps to identify HP's potential opportunities and risks in technological innovation and market expansion. The impact of the macro-economy on HP's development is also analyzed. The results of this thesis provide a reference for investors and management, which helps to understand the market positioning and future development potential of HP and other technology companies. The limitations of the study are the subjectivity of data forecasts and the uncertainty of the market environment
University
University of Saint Joseph
Place
Macau
Date
2024
# of Pages
131
Language
eng
Short Title
A Financial Valuation of Hewlett-Packard Inc. (NYSE
Library Catalog
Library Catalog (Koha)
Call Number
M-BA 2024 MA,HEN
Notes
In Partial Fulfillment of the Requirements for the Degree of Master of Business Administration in the Faculty of Business & Law, University of Saint Joseph, Macao, April 2024Supervisor : Jenny Oliveros Lao Phillips
Citation
Ma, H. (2024). A Financial Valuation of Hewlett-Packard Inc. (NYSE: HPQ). University of Saint Joseph.