A stark HP reality check
“H.P.’s market capitalization is about $27 billion. That’s scarcely more than half the price its parts would fetch as standalone entities. At least that is the conclusion from a new Breakingviews calculator that compares revenue multiples at each of its divisions with similar publicly traded companies.
This isn’t a precise valuation method, but it’s a way to assess the worth of troubled businesses since profitability can be swamped by inefficiencies or flattered by aggressive accounting.”