HPE PE Ratio & Valuation,Is HPE Overvalued

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 10.06 is considered Fairly compared with the five-year average of 8.45. The fair price of Hewlett Packard Enterprise Co (HPE) is between 20.97 to 25.51 according to relative valuation methord.

Relative Value

Fair Zone

20.97-25.51

Current Price：23.87

Fair

10.06

7.09

EV/EBITDA

Hewlett Packard Enterprise Co. (HPE) has a current EV/EBITDA of 7.09. The 5-year average EV/EBITDA is 5.84. 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 7.09 falls within the Strongly Overvalued range.

10.58

EV/EBIT

Hewlett Packard Enterprise Co. (HPE) has a current EV/EBIT of 10.58. The 5-year average EV/EBIT is 10.16. The thresholds are as follows: Strongly Undervalued below 8.47, Undervalued between 8.47 and 9.32, Fairly Valued between 11.01 and 9.32, Overvalued between 11.01 and 11.85, and Strongly Overvalued above 11.85. The current Forward EV/EBIT of 10.58 falls within the Historic Trend Line -Fairly Valued range.

0.77

Hewlett Packard Enterprise Co. (HPE) has a current PS of 0.77. 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 0.77 falls within the Historic Trend Line -Fairly Valued range.

7.64

P/OCF

Hewlett Packard Enterprise Co. (HPE) has a current P/OCF of 7.64. 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 6.08 and 3.79, Overvalued between 6.08 and 7.22, and Strongly Overvalued above 7.22. The current Forward P/OCF of 7.64 falls within the Strongly Overvalued range.

17.38

P/FCF

Hewlett Packard Enterprise Co. (HPE) has a current P/FCF of 17.38. 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 14.26 and 6.89, Overvalued between 14.26 and 17.94, and Strongly Overvalued above 17.94. The current Forward P/FCF of 17.38 falls within the Overvalued range.

Hewlett Packard Enterprise Co (HPE) has a current Price-to-Book (P/B) ratio of 1.27. Compared to its 3-year average P/B ratio of 1.07 , the current P/B ratio is approximately 18.36% higher. Relative to its 5-year average P/B ratio of 1.06, the current P/B ratio is about 19.67% higher. Hewlett Packard Enterprise Co (HPE) has a Forward Free Cash Flow (FCF) yield of approximately 1.99%. Compared to its 3-year average FCF yield of 6.79%, the current FCF yield is approximately -70.69% lower. Relative to its 5-year average FCF yield of 7.52% , the current FCF yield is about -73.53% lower.

1.27

P/B

Median3y

1.07

Median5y

1.06

1.99

FCF Yield

Median3y

6.79

Median5y

7.52

Competitors Valuation Multiple

The average P/S ratio for HPE's competitors is 162.63, providing a benchmark for relative valuation. Hewlett Packard Enterprise Co Corp (HPE) exhibits a P/S ratio of 0.77, which is -99.52% above the industry average. Given its robust revenue growth of 14.44%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of HPE increased by 11.80% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -286.01 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.

14.44%

8.46B → 9.68B

Revenue Growth

-88.79%

16.15 → 1.81

Margin Expansion

86.15%

-286.01 → -532.42

P/E Change

11.80%

21.35 → 23.87

Mkt Cap Growth

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Frequently Asked Questions

Is Hewlett Packard Enterprise Co (HPE) currently overvalued or undervalued?

What is Hewlett Packard Enterprise Co (HPE) fair value?

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. The fair price of Hewlett Packard Enterprise Co (HPE) is between 20.97 to 25.51 according to relative valuation methord.

How does HPE's valuation metrics compare to the industry average?

What is the current P/B ratio for Hewlett Packard Enterprise Co (HPE) as of Dec 15 2025?

As of Dec 15 2025, Hewlett Packard Enterprise Co (HPE) has a P/B ratio of 1.27. This indicates that the market values HPE at 1.27 times its book value.

What is the current FCF Yield for Hewlett Packard Enterprise Co (HPE) as of Dec 15 2025?

As of Dec 15 2025, Hewlett Packard Enterprise Co (HPE) has a FCF Yield of 1.99%. This means that for every dollar of Hewlett Packard Enterprise Co’s market capitalization, the company generates 1.99 cents in free cash flow.

What is the current Forward P/E ratio for Hewlett Packard Enterprise Co (HPE) as of Dec 15 2025?

As of Dec 15 2025, Hewlett Packard Enterprise Co (HPE) has a Forward P/E ratio of 10.06. This means the market is willing to pay $10.06 for every dollar of Hewlett Packard Enterprise Co’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Hewlett Packard Enterprise Co (HPE) as of Dec 15 2025?

As of Dec 15 2025, Hewlett Packard Enterprise Co (HPE) has a Forward P/S ratio of 0.77. This means the market is valuing HPE at $0.77 for every dollar of expected revenue over the next 12 months.

HPE Valuation