HPQ Current Fair Value
The current fair value of Hewlett-Packard has been reduced to $43.52, based on our current free cash flow estimates, which includes various adjustments to cash flow from operating activities.
The table below shows a blended rate whereas at CT Capital, our credit model indicates a 8.75% cost of capital is the most appropriate, and results in a fair valuation of $42.62. This is about 13% lower than a month ago and is due to the resignation of an important executive and the buyback announcement of yesterday.
HPQ Fair Value
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Disclosure: No positions
Kenneth S. Hackel, CFA
President
CT Capital LLC
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If you are interested in learning more about cash flow, financial structure and valuation, order “Security Valuation and Risk Analysis” out this fall from McGraw-Hill.
