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 10.40 is considered Fairly compared with the five-year average of 8.44. The fair price of Hewlett Packard Enterprise Co (HPE) is between 21.09 to 25.61 according to relative valuation methord.
Relative Value
Fair Zone
21.09-25.61
Current Price：24.54
Fair
10.06
PE
1Y
3Y
5Y
Trailing
Forward
7.22
EV/EBITDA
Hewlett Packard Enterprise Co. (HPE) has a current EV/EBITDA of 7.22. The 5-year average EV/EBITDA is 5.84. The thresholds are as follows: Strongly Undervalued below 4.68, Undervalued between 4.68 and 5.26, Fairly Valued between 6.42 and 5.26, Overvalued between 6.42 and 7.00, and Strongly Overvalued above 7.00. The current Forward EV/EBITDA of 7.22 falls within the Strongly Overvalued range.
10.78
EV/EBIT
Hewlett Packard Enterprise Co. (HPE) has a current EV/EBIT of 10.78. The 5-year average EV/EBIT is 10.16. The thresholds are as follows: Strongly Undervalued below 8.47, Undervalued between 8.47 and 9.31, Fairly Valued between 11.01 and 9.31, Overvalued between 11.01 and 11.85, and Strongly Overvalued above 11.85. The current Forward EV/EBIT of 10.78 falls within the Historic Trend Line -Fairly Valued range.
0.79
PS
Hewlett Packard Enterprise Co. (HPE) has a current PS of 0.79. The 5-year average PS is 0.72. The thresholds are as follows: Strongly Undervalued below 0.56, Undervalued between 0.56 and 0.64, Fairly Valued between 0.80 and 0.64, Overvalued between 0.80 and 0.88, and Strongly Overvalued above 0.88. The current Forward PS of 0.79 falls within the Historic Trend Line -Fairly Valued range.
7.86
P/OCF
Hewlett Packard Enterprise Co. (HPE) has a current P/OCF of 7.86. The 5-year average P/OCF is 4.93. The thresholds are as follows: Strongly Undervalued below 2.65, Undervalued between 2.65 and 3.79, Fairly Valued between 6.07 and 3.79, Overvalued between 6.07 and 7.21, and Strongly Overvalued above 7.21. The current Forward P/OCF of 7.86 falls within the Strongly Overvalued range.
17.87
P/FCF
Hewlett Packard Enterprise Co. (HPE) has a current P/FCF of 17.87. The 5-year average P/FCF is 10.57. The thresholds are as follows: Strongly Undervalued below 3.21, Undervalued between 3.21 and 6.89, Fairly Valued between 14.24 and 6.89, Overvalued between 14.24 and 17.92, and Strongly Overvalued above 17.92. The current Forward P/FCF of 17.87 falls within the Overvalued range.
Hewlett Packard Enterprise Co (HPE) has a current Price-to-Book (P/B) ratio of 1.31. Compared to its 3-year average P/B ratio of 1.07 , the current P/B ratio is approximately 22.40% higher. Relative to its 5-year average P/B ratio of 1.06, the current P/B ratio is about 23.74% 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 6.81%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 7.52% , the current FCF yield is about -100.00% lower.
1.27
P/B
Median3y
1.07
Median5y
1.06
1.94
FCF Yield
Median3y
6.81
Median5y
7.52
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 14.44%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of HPE increased by 14.94% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -281.27 to -532.42.
The secondary factor is the Revenue Growth, contributed 14.44%to the performance.
Overall, the performance of HPE in the past 1 year is driven by P/E Change. Which is more unsustainable.
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