Hewlett Packard Enterprise Company

XTRA:2HP Stock Report

Market Cap: €27.2b

Hewlett Packard Enterprise Valuation

Is 2HP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 2HP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2HP (€19.91) is trading below our estimate of fair value (€37.08)

Significantly Below Fair Value: 2HP is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2HP?

Key metric: As 2HP is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2HP. This is calculated by dividing 2HP's market cap by their current earnings.
What is 2HP's PE Ratio?
PE Ratio15.5x
EarningsUS$1.86b
Market CapUS$28.74b

Price to Earnings Ratio vs Peers

How does 2HP's PE Ratio compare to its peers?

The above table shows the PE ratio for 2HP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.6x
NTAP NetApp
21.6x5.8%US$26.3b
7751 Canon
15.5x7.5%JP¥4.7t
2382 Quanta Computer
20.6x19.7%NT$1.1t
4901 FUJIFILM Holdings
16.8x9.5%JP¥4.0t
2HP Hewlett Packard Enterprise
15.5x7.3%€28.7b

Price-To-Earnings vs Peers: 2HP is good value based on its Price-To-Earnings Ratio (15.5x) compared to the peer average (18.9x).

Price to Earnings Ratio vs Industry

How does 2HP's PE Ratio compare vs other companies in the European Tech Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
2HP 15.5xIndustry Avg. 22.2xNo. of Companies4PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 2HP is good value based on its Price-To-Earnings Ratio (15.5x) compared to the Global Tech industry average (22.6x).

Price to Earnings Ratio vs Fair Ratio

What is 2HP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2HP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.5x
Fair PE Ratio15.1x

Price-To-Earnings vs Fair Ratio: 2HP is expensive based on its Price-To-Earnings Ratio (15.5x) compared to the estimated Fair Price-To-Earnings Ratio (15.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 2HP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€19.91
€21.50
+8.0%
11.6%€27.85€17.29n/a17
Nov ’25€17.99
€19.45
+8.1%
8.9%€21.95€16.46n/a17
Oct ’25€18.08
€19.06
+5.4%
9.1%€21.56€16.17n/a16
Sep ’25€17.49
€18.74
+7.2%
11.3%€21.52€14.35n/a15
Aug ’25€17.97
€18.73
+4.3%
12.5%€22.17€14.78n/a16
Jul ’25€19.56
€18.82
-3.8%
12.1%€22.44€14.96n/a16
Jun ’25€16.03
€16.28
+1.6%
11.3%€19.41€12.94n/a16
May ’25€16.12
€16.43
+1.9%
11.4%€19.68€13.12n/a16
Apr ’25€16.48
€15.73
-4.6%
11.3%€19.19€12.79n/a16
Mar ’25€13.41
€15.39
+14.8%
7.8%€17.53€12.92n/a15
Feb ’25€14.10
€16.20
+14.9%
9.7%€19.32€13.80n/a16
Jan ’25€15.47
€16.06
+3.8%
9.7%€18.97€13.55n/a19
Dec ’24€15.69
€16.24
+3.5%
9.4%€19.14€13.67n/a20
Nov ’24€14.70
€16.91
+15.1%
9.8%€19.83€14.16€17.9920
Oct ’24€16.83
€16.73
-0.5%
9.8%€19.65€14.04€18.0820
Sep ’24€15.86
€16.49
+4.0%
10.1%€19.36€13.83€17.4921
Aug ’24€15.73
€15.48
-1.6%
11.5%€18.75€12.50€17.9721
Jul ’24€15.35
€15.84
+3.3%
11.2%€19.24€12.83€19.5621
Jun ’24€13.72
€15.81
+15.3%
11.1%€18.71€13.10€16.0320
May ’24€12.98
€15.76
+21.4%
10.6%€18.21€12.74€16.1219
Apr ’24€13.81
€16.04
+16.1%
12.1%€18.66€12.13€16.4821
Mar ’24€14.61
€15.73
+7.7%
13.5%€18.46€12.00€13.4121
Feb ’24€14.67
€15.73
+7.3%
13.5%€18.46€12.00€14.1021
Jan ’24€14.78
€16.10
+8.9%
13.7%€18.84€12.24€15.4721
Dec ’23€15.98
€15.54
-2.7%
14.4%€19.00€12.35€15.6921
Nov ’23€14.55
€15.73
+8.1%
15.8%€19.84€11.41€14.7021

Analyst Forecast: Target price is less than 20% higher than the current share price.

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