The case for buying Hewlett-Packard ahead of its split, The Edge reveals valuation
Dec 8, 2014
By David Pett, Financial Post. The proposed split of Hewlett-Packard Co.’s personal computer and printer businesses could result in significant upside to the company’s current share price, says a new report by The Edge Consulting Group. The PC business has fallen behind mobile computing at a time when consumers are migrating to smartphones and tablets. Last year, Hewlett-Packard lost its place as the largest PC maker to Lenovo Group Ltd., the Edge report said.
“Hence, we believe the split of the personal-computer and printer businesses (to be known as HP Inc) will result in the release of the trapped value as these businesses of HPQ have limited synergies with its Enterprise businesses (to be known as Hewlett-Packard Enterprise),” the report said. Based on its calculations, the sum-of-the-parts valuation for Hewlett-Packard is…