HPQ Stock - This is what excited us…

Warren Buffett can't get enough of HP stock and this is why. In this video, Paul Gabrail of Everything Money will perform an HP stock review 2023 to see what the right price to pay for this "dying" tech company is. Is it truly one of the best tech stocks to buy now? What is Buffett thinking? Find out in the video above!

#techstocks #hp #hpq

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--Video Editing by Justin Nelson--

0:00 Phone are beating PCs!
1:21 HP acquisitions
1:50 Bear cases for HP
2:29 HPQ stock analysis 2023
4:29 Analyst estimates
6:46 What to pay for HP stock

[TortoiseInvesting]

I wasn't aware their share buy backs were that aggressive, good payout ratio, nice dividend, and that on top, there is a lot to love about this company

[Mircose]

HP is utter garbage.. their printers are bad, their laptops are bad.. I own an IT computer & printers repair business and I can tell based on 25 years experience everyone should stay away from HP products.. they are badly designed, hard to find spare parts, I'm amazed this company hasn't gone bankrupt yet.

[alecstahl]

I am +14% on HP, and I have been happy collecting dividends as well.

[omsu]

I am a little confused here. If I buy at $24 my return will be 8.74% but if I buy at $37 my return will be 20% ? so if I buy higher I get higher return? My though is opposite, the lower I buy the higher my return. ummm?
please help me understand.

[brettgreen]

They also consistently have depreciation and amortization in excess of capital expenditures. That seems to be Warren Buffet's favorite metric for a durable business.

[jordibruggeman]

The same exact reason I'm bullish on PYPL. Huge buyback rate, cheap valuation, potentially stagnant business.

[pawansomavarpu]

Hey Paul, does the stock analyzer tool take into account share buybacks (say if a stock is buying back an expected 1% per year) when displaying the price ranges?

[jimland]

I need to read their latest earning report. I was taken aback that the share count didn't go down this quarter.

[danbrown]

I would love for Paul to make a video talking about his short position on Tesla and Nvidia, and if he's still shorting the market, I agree with him about the valuation being high, but would love to hear an update

[sakdab]

Why is revenue estimate at -2, 0 and 2 for low, medium, high when they had 127B revenue in 2011 but 56B TTM. That does not make sense. It should more be like -10, -5 and 0 or -15, -5, 5.

[informer-]

Hi Paul. How do you have so much confidence when you have no multi baggers, and all your shorts lose? Also you keep talking about buffet but he actually performs well in the markets

[MJB-uqvz]

Stock Moe face cracked me up dude. Lmfao

[PizzaPie-zmvo]

Increasing EPS due to BuyBacks? Should look to n/I, not EPS?

[Max-tgin]

Could the shares outstanding be impacted by the spin off they had a while back though?

[dialogsemiconductor]

Your Analyzer does not consider the buybacks. That's why HP is red at the end. You should ajust that.

[daverevs]

I thought i had a pretty good process before finding this channel. Definitely helped me become a better value investor. Still lots to learn, so ill just watch more videos 🤷😂

[dancingdiamondsjewellersltd]

I owned since this since covid to willing to buy more when it drops in price 🇬🇧🖊📃🔋💎

[mikemcq]

Love this site. I started investing at the beginning of the year and am up 21 percent, and only invest in individual stocks. I've invested in some before they have, by using the stock analyzer tool. One of my multi baggers I think will come will be RCMT

[LiterallyAnythingYouWant]

I like HP, they have good products but with PC market becoming saturated, I just don't see how they can attract new investors with limited growth potential. Apple is going to deal with the same issue, however they have so many other products that they are selling that continue to be in demand. Ex. iPad

[donpeters]

The P/E in the tool and in a DCF Valuation is NOT what you are willing to pay for the company. It is not what Paul says it is!!!
You have to calculate the current value of ALL future Cashflows to infinity.
However, your growth numbers cannot be relied upon out past about 7 years forward.
Hence, you calculate future values for the next X years, in your case 10 years forward, by growing revenues and earnings at your projected growth rate, and at the Margins you specify for the number of years you specify, 10 years.
But this does not value ALL Future Cashflows to infinity... However, your model is less likely to be accurate further out, so the only reasonable way to value those cashflows out past the end of the analysis is to assume that you will be able to SELL the stock you hold at the end of the analysis at a P/E that the market is willing to pay you at that time, which represents the market's perception at that time of the value of all future Cashflows from Year X (Year 10) to infinity, and then discount that back along with the calculated cashflows from Years 1 to X-1 (Year 9) and the value of P/E x Year X (Year 10) Cashflow...
If the Earnings today is 10 and it grows at 10% pa, then after Year 1 = 11, Year 2, 12.1, Year 3, 13.31, Year 4, 14.641, and so on to Year 9, 23.58, then Year 10 you sell the stock for say 15 P/E = 25.937 x 15 = 389.06... Then you discount all of these cashclows back to Net Present Value using your Desired Return (Hurdle Rate) Discount Factor to get the Net Present Value and the Price you would be willing to pay for the stock today... The P/E in the calculator is the value of the Future Cashflows from Year 10 to infinity as valued by the market in Year 10...
See Aswath Damodaran on Valuation.
And your Calculator does not take into account Liquid Assets; Cash and Liquid Assets Minus Short-term liabilities. When you buy a company with a healthy bank balance the money belongs to the shareholders and is not being used in the operations of the business...