HPE Valuation

Hewlett Packard Enterprise Co

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20.520

+0.5(2.498%)1D

HPE Relative Valuation

HPE's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, HPE is overvalued; if below, it's undervalued.

Historical Valuation

Hewlett Packard Enterprise Co (HPE) is now in the Fair zone, suggesting that its current forward PE ratio of 9.00 is considered Fairly compared with the five-year average of 8.41. The fair price of Hewlett Packard Enterprise Co (HPE) is between 19.47 to 23.96 according to relative valuation methord.

Relative Value

Fair Zone

19.47-23.96

Current Price：20.63

Fair

9.23

Trailing

Forward

7.09

EV/EBITDA

Hewlett Packard Enterprise Co. (HPE) has a current EV/EBITDA of 7.09. The 5-year average EV/EBITDA is 5.82. The thresholds are as follows: Strongly Undervalued below 4.66, Undervalued between 4.66 and 5.24, Fairly Valued between 6.40 and 5.24, Overvalued between 6.40 and 6.98, and Strongly Overvalued above 6.98. The current Forward EV/EBITDA of 7.09 falls within the Strongly Overvalued range.

10.56

EV/EBIT

Hewlett Packard Enterprise Co. (HPE) has a current EV/EBIT of 10.56. The 5-year average EV/EBIT is 10.15. The thresholds are as follows: Strongly Undervalued below 8.44, Undervalued between 8.44 and 9.30, Fairly Valued between 11.00 and 9.30, Overvalued between 11.00 and 11.86, and Strongly Overvalued above 11.86. The current Forward EV/EBIT of 10.56 falls within the Historic Trend Line -Fairly Valued range.

0.66

Hewlett Packard Enterprise Co. (HPE) has a current PS of 0.66. The 5-year average PS is 0.72. The thresholds are as follows: Strongly Undervalued below 0.55, Undervalued between 0.55 and 0.63, Fairly Valued between 0.80 and 0.63, Overvalued between 0.80 and 0.88, and Strongly Overvalued above 0.88. The current Forward PS of 0.66 falls within the Historic Trend Line -Fairly Valued range.

5.62

P/OCF

Hewlett Packard Enterprise Co. (HPE) has a current P/OCF of 5.62. The 5-year average P/OCF is 4.88. The thresholds are as follows: Strongly Undervalued below 2.67, Undervalued between 2.67 and 3.77, Fairly Valued between 5.98 and 3.77, Overvalued between 5.98 and 7.09, and Strongly Overvalued above 7.09. The current Forward P/OCF of 5.62 falls within the Historic Trend Line -Fairly Valued range.

8.74

P/FCF

Hewlett Packard Enterprise Co. (HPE) has a current P/FCF of 8.74. The 5-year average P/FCF is 10.41. The thresholds are as follows: Strongly Undervalued below 3.29, Undervalued between 3.29 and 6.85, Fairly Valued between 13.97 and 6.85, Overvalued between 13.97 and 17.53, and Strongly Overvalued above 17.53. The current Forward P/FCF of 8.74 falls within the Historic Trend Line -Fairly Valued range.

Hewlett Packard Enterprise Co (HPE) has a current Price-to-Book (P/B) ratio of 1.08. Compared to its 3-year average P/B ratio of 1.07 , the current P/B ratio is approximately 1.33% higher. Relative to its 5-year average P/B ratio of 1.06, the current P/B ratio is about 2.45% higher. Hewlett Packard Enterprise Co (HPE) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 6.87%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 7.47% , the current FCF yield is about -100.00% lower.

1.11

P/B

Median3y

1.07

Median5y

1.06

0.85

FCF Yield

Median3y

6.87

Median5y

7.47

Competitors Valuation Multiple

The average P/S ratio for HPE's competitors is , providing a benchmark for relative valuation. Hewlett Packard Enterprise Co Corp (HPE) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 18.50%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

HPE.N

Hewlett Packard Enterprise Co

Super Micro Computer Inc

Zebra Technologies Corp

Rigetti Computing Inc

Performance Decomposition

Market capitalization of HPE decreased by 2.69% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 18.54 to 23.83.

The secondary factor is the Revenue Growth, contributed 18.50%to the performance.

Overall, the performance of HPE in the past 1 year is driven by P/E Change. Which is more unsustainable.

18.50%

7.71B → 9.14B

Revenue Growth

-49.70%

6.64 → 3.34

Margin Expansion

28.51%

18.54 → 23.83

P/E Change

-2.69%