Overvalued Company of the Week: Hewlett-Packard (HPQ)
Read the full article at: http://moderngraham.com/blog/2006/10/overvalued_company_of_the_week_3.html
Submitted by Geoff on Wed, 2006-10-11 12:18.
(via moderngraham.com)
Modern Graham takes a look at Hewlett Packard (HPQ). It isn't a pretty sight: "The company’s size, current ratio, lack of positive net income for the past 10 years, and high P/E and P/B ratios eliminate it from being attractive for a defensive investor. With a P/E ratio of 52.53 and ROIC of only 6.66%, Hewlett Packard does not pass any of our tests to identify a valuable stock selection. We find that the current share price is between 250-270% above the intrinsic value."
