HPE
Hewlett Packard Enterprise Company (HPE)
Last Price$19.0(3.9%)
Market Cap$25.7B
DCF value
$20.4
Undervalued (DCF value)
7.4%
Discount Rate
5.7%
Long-Term Growth Rate
4.0%
Stock quality
6/10
Good

HPE DCF Model

Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
Oct'20 ActualOct'21 ActualOct'22 ActualOct'23 ActualOct'24 ActualOct'25 EstimateOct'26 EstimateOct'27 EstimateOct'28 EstimateOct'29 EstimateOct'30 EstimateOct'31 EstimateOct'32 EstimateOct'33 EstimateOct'34 EstimateOct'35 Terminal
% growth
26,982.0
(7.4%)
27,784.0
3.0%
28,496.0
2.6%
29,135.0
2.2%
30,127.0
3.4%
32,565.0
8.1%
34,175.3
4.9%
34,931.7
2.2%
35,782.9
2.4%
36,734.8
2.7%
37,794.0
2.9%
38,968.2
3.1%
40,265.8
3.3%
41,696.6
3.6%
43,271.4
3.8%
45,002.2
4.0%
3,412.0
12.6%
2,429.0
8.7%
3,605.0
12.7%
2,089.0
7.2%
2,190.0
7.3%
2,527.4
7.8%
2,652.4
7.8%
2,711.1
7.8%
2,777.1
7.8%
2,851.0
7.8%
2,933.2
7.8%
3,024.4
7.8%
3,125.1
7.8%
3,236.1
7.8%
3,358.3
7.8%
3,492.7
7.8%
NOPAT
% effective tax rate
2,485.7
9.2%
2,320.7
8.4%
3,572.1
12.5%
1,897.0
6.5%
1,912.6
6.3%
2,207.3
6.8%
2,316.4
6.8%
2,367.7
6.8%
2,425.4
6.8%
2,489.9
6.8%
2,561.7
6.8%
2,641.3
6.8%
2,729.3
6.8%
2,826.3
6.8%
2,933.0
6.8%
3,050.3
6.8%
% of revenue
2,625.0
9.7%
2,597.0
9.3%
2,480.0
8.7%
2,616.0
9.0%
2,564.0
8.5%
2,843.2
8.7%
2,983.8
8.7%
3,049.8
8.7%
3,124.1
8.7%
3,207.3
8.7%
3,299.7
8.7%
3,402.2
8.7%
3,515.5
8.7%
3,640.5
8.7%
3,778.0
8.7%
3,929.1
8.7%
% of revenue
(2,383.0)
(8.8%)
(2,502.0)
(9.0%)
(3,122.0)
(11.0%)
(2,828.0)
(9.7%)
(2,367.0)
(7.9%)
(3,095.8)
(9.5%)
(3,248.8)
(9.5%)
(3,320.7)
(9.5%)
(3,401.7)
(9.5%)
(3,492.2)
(9.5%)
(3,592.9)
(9.5%)
(3,704.5)
(9.5%)
(3,827.8)
(9.5%)
(3,963.8)
(9.5%)
(4,113.6)
(9.5%)
(4,278.1)
(9.5%)
(2,246.0)
(8.3%)
(1,370.0)
(4.9%)
(570.0)
(2.0%)
(1,032.0)
(3.5%)
(688.0)
(2.3%)
(849.5)
(2.6%)
(891.5)
(2.6%)
(911.3)
(2.6%)
(933.5)
(2.6%)
(958.3)
(2.6%)
(985.9)
(2.6%)
(1,016.6)
(2.6%)
(1,050.4)
(2.6%)
(1,087.7)
(2.6%)
(1,128.8)
(2.6%)
(1,174.0)
(2.6%)
Free Cash Flow to Firm (FCFF)
% of revenue
481.7
1.8%
1,045.7
3.8%
2,360.1
8.3%
653.0
2.2%
1,421.6
4.7%
1,105.2
3.4%
1,159.9
3.4%
1,185.5
3.4%
1,214.4
3.4%
1,246.7
3.4%
1,282.7
3.4%
1,322.5
3.4%
1,366.6
3.4%
1,415.1
3.4%
1,468.6
3.4%
1,527.3
3.4%
% of FCFF used in calculation
66.3%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Discount period
0.50
1.50
2.50
3.50
4.50
5.50
6.50
7.50
8.50
9.50
Discount factor
0.97
0.92
0.87
0.82
0.78
0.74
0.70
0.66
0.63
0.59
Discounted FCFF (DFCFF)
712.8
1,067.6
1,032.6
1,000.9
972.3
946.6
923.5
903.0
884.8
868.9

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HPE DCF Value

DCF Value Calculation

as of Mar 03, 2025
Sum of DFCFF
% share of EV
9,313.0M
30.0%
Terminal Value (TV)
36.7B
Discounted TV
% share of EV
21.7B
70.0%
Total Debt
18.2B
Shares outstanding
1,352.3M
FX rate
1.0
7.4% undervalued

Equity Value Bridge

HPE DCF Financials

Revenue
$30.1B -> $43.3B 3.7% CAGR
Operating Income
$2,190.0M -> $3,358.3M 4.4% CAGR
FCFF
$1,421.6M -> $1,468.6M 0.3% CAGR

HPE DCF sensitivity

DCF value
Long-term Terminal growth rate
3.0%
3.5%
4.0%
4.5%
5.0%
WACC
5.0%
$21.0
$21.0
$21.0
$21.0
$21.0
5.5%
$21.0
$21.0
$21.0
$21.0
$21.0
5.7%
$20.0
$20.0
$20.0
$20.0
$20.0
6.5%
$20.0
$20.0
$20.0
$20.0
$20.0
7.0%
$19.0
$19.0
$19.0
$19.0
$19.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
3.0%
3.5%
4.0%
4.5%
5.0%
WACC
5.0%
10.0%
10.0%
10.0%
10.0%
10.0%
5.5%
10.0%
10.0%
10.0%
10.0%
10.0%
5.7%
5.0%
5.0%
5.0%
5.0%
5.0%
6.5%
5.0%
5.0%
5.0%
5.0%
5.0%
7.0%
0.0%
0.0%
0.0%
0.0%
0.0%

Explore more intrinsic value tools hub for HPE

FAQ

What is Hewlett Packard Enterprise Company DCF (discounted cash flow) valuation?

As of Mar 03, 2025, Hewlett Packard Enterprise Company's Discounted Cash Flow (DCF) valuation estimates its share price at $20.4. This suggests it may be undervalued by 7.4% compared to its current price of around $19.0, using a WACC of 5.7% and growth rates of 4.0%.

What is Hewlett Packard Enterprise Company WACC?

As of Mar 03, 2025, Hewlett Packard Enterprise Company's Weighted Average Cost of Capital (WACC) is approximately 5.7%.

What is Hewlett Packard Enterprise Company Enterprise Value?

As of Mar 03, 2025, Hewlett Packard Enterprise Company's Enterprise Value (EV) is approximately $31.0B. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.