HPE Valuation

Hewlett Packard Enterprise Co

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20.890

+0.04(0.192%)1D

Overview
Forecast
Valuation
Earnings

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 10.14 is considered Fairly compared with the five-year average of 8.13. The fair price of Hewlett Packard Enterprise Co (HPE) is between 20.34 to 24.52 according to relative valuation methord.

Relative Value

Fair Zone

20.34-24.52

Current Price：20.85

Fair

10.20

Trailing

Forward

5.37

EV/EBITDA

Hewlett Packard Enterprise Co. (HPE) has a current EV/EBITDA of 5.37. The 5-year average EV/EBITDA is 5.71. The thresholds are as follows: Strongly Undervalued below 4.90, Undervalued between 4.90 and 5.30, Fairly Valued between 6.11 and 5.30, Overvalued between 6.11 and 6.51, and Strongly Overvalued above 6.51. The current Forward EV/EBITDA of 5.37 falls within the Historic Trend Line -Fairly Valued range.

8.46

EV/EBIT

Hewlett Packard Enterprise Co. (HPE) has a current EV/EBIT of 8.46. The 5-year average EV/EBIT is 10.10. The thresholds are as follows: Strongly Undervalued below 8.63, Undervalued between 8.63 and 9.36, Fairly Valued between 10.84 and 9.36, Overvalued between 10.84 and 11.57, and Strongly Overvalued above 11.57. The current Forward EV/EBIT of 8.46 falls within the Strongly Undervalued range.

0.72

Hewlett Packard Enterprise Co. (HPE) has a current PS of 0.72. The 5-year average PS is 0.70. The thresholds are as follows: Strongly Undervalued below 0.49, Undervalued between 0.49 and 0.59, Fairly Valued between 0.80 and 0.59, Overvalued between 0.80 and 0.90, and Strongly Overvalued above 0.90. The current Forward PS of 0.72 falls within the Historic Trend Line -Fairly Valued range.

7.67

P/OCF

Hewlett Packard Enterprise Co. (HPE) has a current P/OCF of 7.67. The 5-year average P/OCF is 4.69. The thresholds are as follows: Strongly Undervalued below 2.60, Undervalued between 2.60 and 3.65, Fairly Valued between 5.73 and 3.65, Overvalued between 5.73 and 6.78, and Strongly Overvalued above 6.78. The current Forward P/OCF of 7.67 falls within the Strongly Overvalued range.

12.78

P/FCF

Hewlett Packard Enterprise Co. (HPE) has a current P/FCF of 12.78. The 5-year average P/FCF is 10.48. The thresholds are as follows: Strongly Undervalued below 3.35, Undervalued between 3.35 and 6.91, Fairly Valued between 14.04 and 6.91, Overvalued between 14.04 and 17.60, and Strongly Overvalued above 17.60. The current Forward P/FCF of 12.78 falls within the Historic Trend Line -Fairly Valued range.

Hewlett Packard Enterprise Co (HPE) has a current Price-to-Book (P/B) ratio of 1.15. Compared to its 3-year average P/B ratio of 1.03 , the current P/B ratio is approximately 11.65% higher. Relative to its 5-year average P/B ratio of 1.02, the current P/B ratio is about 11.79% higher. Hewlett Packard Enterprise Co (HPE) has a Forward Free Cash Flow (FCF) yield of approximately 0.39%. Compared to its 3-year average FCF yield of 7.76%, the current FCF yield is approximately -94.97% lower. Relative to its 5-year average FCF yield of 7.59% , the current FCF yield is about -94.86% lower.

1.15

P/B

Median3y

1.03

Median5y

1.02

0.39

FCF Yield

Median3y

7.76

Median5y

7.59

Competitors Valuation Multiple

The average P/S ratio for HPE's competitors is 99.50, providing a benchmark for relative valuation. Hewlett Packard Enterprise Co Corp (HPE) exhibits a P/S ratio of 0.72, which is -99.28% above the industry average. Given its robust revenue growth of 5.87%, 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

Loss

-51.77%

4.57B

Performance Decomposition

Market capitalization of HPE increased by 6.33% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 3.90 to 20.12.

The secondary factor is the Revenue Growth, contributed 5.87%to the performance.

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

5.87%

7.20B → 7.63B

Revenue Growth

-415.83%

4.36 → -13.77

Margin Expansion

416.29%

3.90 → 20.12

P/E Change

6.33%