HP Inc.

Methodology

HP's PC and printer business generates cyclical earnings tied to corporate IT refresh cycles and consumer electronics demand. The company's printer installed base provides recurring supplies revenue with higher margins. This calculation works best when normalizing for PC market cycles—neither boom periods from work-from-home nor bust periods from oversupply represent sustainable earnings baselines.

Methodology

HP often shows low PEG ratios reflecting structural concerns about PC market maturity and declining print volumes from digitalization. The company's shareholder returns and cost discipline provide value characteristics. A low PEG may signal value for patient investors or appropriately reflect secular decline in printing and commoditization of PC hardware.

Methodology

HP pays a substantial dividend reflecting strong cash generation from the mature PC and printer businesses. The company prioritizes aggressive capital returns through dividends and buybacks. PEGY is highly relevant for income investors seeking yield from legacy technology hardware, though long-term dividend sustainability depends on managing structural print volume declines and maintaining PC market share.