Hewlett Packard Enterprise Company

NYSE:HPE Stock Report

Market Cap: US$27.6b

Hewlett Packard Enterprise Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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 HPE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HPE ($21.25) is trading below our estimate of fair value ($38.21)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for HPE. This is calculated by dividing HPE's market cap by their current earnings.
What is HPE's PE Ratio?
PE Ratio14.9x
EarningsUS$1.86b
Market CapUS$27.56b

Price to Earnings Ratio vs Peers

How does HPE's PE Ratio compare to its peers?

The above table shows the PE ratio for HPE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average59.7x
NTAP NetApp
21.8x5.8%US$24.9b
HPQ HP
12.7x2.0%US$34.1b
WDC Western Digital
77.2x21.1%US$25.2b
PSTG Pure Storage
127.3x36.2%US$17.4b
HPE Hewlett Packard Enterprise
14.9x7.3%US$27.6b

Price-To-Earnings vs Peers: HPE is good value based on its Price-To-Earnings Ratio (14.9x) compared to the peer average (59.7x).

Price to Earnings Ratio vs Industry

How does HPE's PE Ratio compare vs other companies in the Global Tech Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
HPE 14.9xIndustry Avg. 22.0xNo. of Companies26PE01632486480+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HPE is good value based on its Price-To-Earnings Ratio (14.9x) compared to the Global Tech industry average (22x).

Price to Earnings Ratio vs Fair Ratio

What is HPE'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.

HPE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.9x
Fair PE Ratio24.2x

Price-To-Earnings vs Fair Ratio: HPE is good value based on its Price-To-Earnings Ratio (14.9x) compared to the estimated Fair Price-To-Earnings Ratio (24.2x).

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 HPE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$21.25
US$22.39
+5.3%
11.6%US$29.00US$18.00n/a17
Nov ’25US$20.06
US$21.26
+6.0%
8.9%US$24.00US$18.00n/a17
Oct ’25US$19.95
US$21.22
+6.3%
9.1%US$24.00US$18.00n/a16
Sep ’25US$19.37
US$20.90
+7.9%
11.3%US$24.00US$16.00n/a15
Aug ’25US$19.08
US$20.28
+6.3%
12.5%US$24.00US$16.00n/a16
Jul ’25US$21.16
US$20.12
-4.9%
12.1%US$24.00US$16.00n/a16
Jun ’25US$17.65
US$17.62
-0.2%
11.3%US$21.00US$14.00n/a16
May ’25US$16.44
US$17.53
+6.6%
11.4%US$21.00US$14.00n/a16
Apr ’25US$17.94
US$17.22
-4.0%
11.3%US$21.00US$14.00n/a16
Mar ’25US$15.56
US$16.68
+7.2%
7.8%US$19.00US$14.00n/a15
Feb ’25US$15.36
US$17.61
+14.6%
9.7%US$21.00US$15.00n/a16
Jan ’25US$16.98
US$17.77
+4.7%
9.7%US$21.00US$15.00n/a19
Dec ’24US$16.89
US$17.82
+5.5%
9.4%US$21.00US$15.00US$21.2220
Nov ’24US$15.53
US$17.92
+15.4%
9.8%US$21.00US$15.00US$20.0620
Oct ’24US$17.37
US$17.88
+2.9%
9.8%US$21.00US$15.00US$19.9520
Sep ’24US$17.98
US$17.89
-0.5%
10.1%US$21.00US$15.00US$19.3721
Aug ’24US$17.41
US$17.34
-0.4%
11.5%US$21.00US$14.00US$19.0821
Jul ’24US$16.80
US$17.29
+2.9%
11.2%US$21.00US$14.00US$21.1621
Jun ’24US$14.67
US$16.90
+15.2%
11.1%US$20.00US$14.00US$17.6520
May ’24US$14.44
US$17.32
+19.9%
10.6%US$20.00US$14.00US$16.4419
Apr ’24US$15.93
US$17.19
+7.9%
12.1%US$20.00US$13.00US$17.9421
Mar ’24US$15.54
US$17.05
+9.7%
13.5%US$20.00US$13.00US$15.5621
Feb ’24US$16.11
US$17.05
+5.8%
13.5%US$20.00US$13.00US$15.3621
Jan ’24US$15.96
US$17.10
+7.1%
13.7%US$20.00US$13.00US$16.9821
Dec ’23US$16.82
US$16.36
-2.8%
14.4%US$20.00US$13.00US$16.8921

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

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