HPQNEUTRAL

EV/EBITDA

6.2x

Updated 174h ago

Sector Performance

15th percentile

HPQ

6.2x

Sector Median

13.7x

Sector Avg

18.4x

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Deep Analysis

HPQ’s EV/EBITDA of 6.2x measures its total enterprise value relative to earnings before interest, taxes, depreciation, and amortization — a lower number generally indicates a cheaper valuation.

That ratio places HPQ at the 15th percentile among its sector peers, well below the sector median of 13.6x, meaning the stock trades at a discount to most similar companies. Over the last eight quarters the metric has been decreasing, though the most recent quarter-over-quarter change is +3.0% (from 6.0x to 6.2x); year-over-year data is not available. The combination of a low current multiple and a long-term decreasing trend could signal either a value opportunity if earnings are stable or a risk that the market is pricing in deteriorating fundamentals. Recent quarterly uptick suggests the compression may be pausing, but the overall direction still warns of caution. This metric supports the NEUTRAL verdict because the deep discount provides a potential upside cushion, but the declining trend prevents a more bullish stance without confirming improvement.

Frequently Asked Questions

What does the EV/EBITDA tell investors about HPQ?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

Who are HPQ's closest peers by EV/EBITDA?

The closest peers by EV/EBITDA include: LSPD (-24.2x), BRZE (-24.5x), EVGO (-25.7x), NIO (-36.8x), SNAP (-38.8x).

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.