Hewlett Packard Enterprise Company (HPE) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-84.4%

$8.32

vs $53.29 price

Levered DCF

$14.72

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

1.41

Distress zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	-547.53×	9.99×	9.86×	21.3×	5.71×	-34.56×	21.04×	12.2×
P/B	1.31×	1.03×	0.94×	0.94×	0.98×	0.7×	1.3×	1.1×
P/S	0.94×	0.85×	0.69×	0.66×	0.7×	0.41×	0.77×	0.76×
EV / EBITDA	19.28×	5.48×	6.03×	6.34×	4.77×	9.67×	7.33×	9.76×
Gross margin	28.8%	31.8%	34.1%	31.4%	32.7%	29.9%	31.1%	29.0%
Operating margin	4.8%	8.1%	8.3%	6.5%	7.9%	5.8%	7.8%	7.7%
Net margin	0.2%	8.6%	7.0%	3.1%	12.3%	-1.2%	3.6%	6.2%
Current ratio	1.01×	1.29×	0.87×	0.88×	0.91×	0.88×	0.79×	1×
Debt / equity	0.98×	0.8×	0.64×	0.68×	0.73×	1.06×	0.81×	0.57×
Interest coverage	9.39×	20.81×	0×	1.76×	15.91×	6.07×	7.12×	8.18×
Dividend yield	2.5%	2.6%	3.1%	3.3%	3.2%	5.5%	2.7%	2.4%
Payout ratio	1396.5%	26.2%	30.6%	71.5%	18.2%	-191.9%	58.0%	29.9%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	0.2%	10.4%	9.6%	4.4%	17.2%	-2.0%	6.1%	9.0%
Return on invested capital	-0.6%	4.2%	5.4%	4.7%	5.1%	2.9%	4.1%	5.9%
Return on assets	0.1%	3.6%	3.5%	1.5%	5.9%	-0.6%	2.0%	3.4%
Free cash flow yield	1.9%	7.7%	8.0%	7.9%	17.2%	-1.3%	5.1%	0.0%
Earnings yield	0.2%	10.1%	10.1%	4.7%	17.5%	-2.9%	4.7%	8.2%
Enterprise value	$50.6B	$30.5B	$29.2B	$27.9B	$30.2B	$23.6B	$32.3B	$30.6B
Net debt / EBITDA	6.97×	0.89×	1.91×	2.12×	1.67×	5.09×	2.29×	2.32×
Cash conversion cycle (days)	76	32	40	32	55	54	24	45