HP Inc (HPQ) is undervalued and Western Digital Corp (WDC) is overvalued.
Against our estimates of intrinsic value, HPQ trades at the wider discount: a margin of safety of +29%, against -34% for WDC.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 9.4% (average of 3 methods) values the shares at $44.97; the price of $32.04 is 29% below that value, and 74% of that value comes from beyond year five.
Leak Score 71/100 on 8 of 12 signals
A 9.6x revenue multiple, adjusted for growth and margin, values the shares at $347.40; the price of $464.60 is 34% above that value.
Leak Score 58/100 on 10 of 12 signals
| Metric | HPQ | WDC |
|---|---|---|
| Verdict | Undervalued | Overvalued |
| Price | $32.04 | $464.60 |
| Intrinsic value | $44.97 | $347.40 |
| Margin of safety | +29% | -34% |
| Leak Score | 71/100 (8/12) | 58/100 (10/12) |
| Market cap | $28.9B | $167.5B |
| Revenue growth, 5 years | -0.4% | -5.3% |
| Operating margin | 6.9% | 35.6% |
| Net margin | 4.1% | 72.0% |
| Return on equity | — | 131.4% |
| Debt to equity | — | 0.13 |
| P/E | 12.2x | 19.2x |
| Forward P/E | 10.0x | 14.3x |
| P/B | — | 18.9x |
| Dividend yield | 3.7% | 0.1% |