QualityDipStocks / Technology · Software & electronics retail
Hewlett Packard Enterprise Company HPE
Outside our quality screen, so we don’t track its dips. It’s 25% below its 52-week high.
Outside our quality screen, trading near our fair value estimate, 9% under its Market Value.
- Fair value est.
- $54.95at the price
- Market Value
- $60.64price −9%
- Off 52-wk high
- −25%
- Risk vs market
- Highbeta 2.16
5 bullish · 5 bearish See why
Key levels
Every level vs today’s $55.09
- 52-wk lowlowest close, 1 year$20.00−63.7%
- Fair value est.base case$54.95−0.3%
- PriceFri Oct 30 close$55.09you are here
- Market Valueavg paid since Sep 2$60.64+10.1%
- 52-wk highhighest close, 1 year$73.46+33.3%
Fair value estimate
How the range is computed
Ten-year free-cash-flow DCF. Same 10-year free-cash-flow model as the base: discount rate 9.5% ±1 point and growth 6.4% ±2 points. Bear = 10.5% and 4.4%; bull = 8.5% and 8.4% (both fade to 3%). A model estimate from public filings, not a forecast of where the price will go.
Price sits inside the range.
What the price implies To be worth today’s price, HPE’s free cash flow would need to grow about 6% a year for five years; our estimate uses 6%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 30 to Oct 30, 252 sessions). Beta = how much HPE moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Swings much more than the market, and its own price swings are 4.6× the S&P 500’s.
- Beta vs S&P 500
- 2.16
- Volatility
- 59% vs 13% SPY
- Correlation SPY
- 0.47
- Correlation QQQ
- 0.51
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 5 of 5
GrowthSales grew 27% to $41.9B over the last 12 months vs the 12 months before (SEC filings).
ValuationFree-cash-flow yield of 5.2% (price / FCF 19.2×): $4.2B of free cash in the last 12 months.
ValuationEV/EBITDA of 14.9×, below the 20.8× median for the 74 Technology companies we cover.
ValuationPrice / book of 3.0×, below the 7.1× median for the 149 Technology companies we cover.
ValuationTrades 9.1% below its Market Value of $60.64, the average price paid since the Sep 2 filing.
Top bearish points 5 of 5
Balance sheetDebt rose 102% to $26.4B from FY2023 to FY2025.
ProfitabilityOperating margin narrowed to −1.3% in FY2025 from 7.2% in FY2023 (SEC filings).
ProfitabilityReturn on equity fell 10 points in two fiscal years, to -0% in FY2025.
QualityDoesn’t pass our quality screen: ROE under 12% and ROIC under 10%.
RiskSwings hard: beta 2.16 vs the S&P 500 and 59% yearly volatility (SPY 13%).
Who’s talking about it
Notable investors, executives, analysts and public figures on Hewlett Packard Enterprise Company in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 1, 9:09 PM ET.
Compare with peers
Closest in size in Technology
All fundamentals
P/E 29.8 · FCF yield 5.2% · ROE 11%
Valuation
- P/E
- 29.8×Technology median 33.9×
- Price / FCF
- 19.2×
- FCF yield
- 5.2%
- EV / EBITDA
- 14.9×
- Price / sales
- 1.91×
- Price / book
- 3.01×
- Market cap
- $79.8Bprice × diluted shares
- Enterprise value
- $91.0B
Growth
- Revenue, 12 months
- $41.9B
- Sales growth, 12 months
- +26.6%vs the 12 months before
- Sales growth, 3 yrs
- +6.4%/yrfrom FY2022
- Diluted EPS, 12 months
- $1.94
- EPS growth, last FY
- n/afewer than two years of diluted EPS
- Net income, 12 months
- $2.7B
- Net income growth
- +135%12 months vs before
Profitability
- Gross margin
- n/agross profit isn't reported (common for service and financial companies)
- Operating margin
- 6.2%
- Net margin
- 6.4%
- FCF margin
- 9.9%
- Return on equity
- 11%
- Return on invested capital
- 7%
Balance sheet
- Cash & short-term inv.
- $6.2B
- Total debt
- $17.3B
- Net cash
- −$11.1B
- Debt / equity
- 0.65×
- Interest coverage
- n/ainterest expense not tagged in SEC data
Cash flow & returns
- Free cash flow, 12 months
- $4.2B
- FCF growth, 12 months
- n/an/m: free cash flow a year ago near zero
- Dividend yield
- 0.93%$739M paid
- Payout ratio
- 28%
- Buybacks, 12 months
- $547M0.7% of market cap
- Share count, 1 year
- +2.0%diluted shares vs a year ago
- Stock-based comp
- $795M
Trailing 12 months to Jul 31, 2026; balance sheet at Jul 31, 2026. From Hewlett Packard Enterprise Company’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
Valuation details
DCF $54.95 · MV $60.64 · FCF value $73.36
Assumes 6.4% growth for 5 years (revenue grew 6.4% a year FY22–FY25), fading to 3%; 9.5% discount rate, 3% terminal growth. FCF base $2.87 a share (trailing 12 months to Jul 31, 2026), from the 10-Q filed Sep 3, 2026. Net debt $13.3B, not deducted.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only run on companies that pass our quality screen.
Momentum & 52-week range
RSI 40 · 5 days −2.8%
The business
FCF $4.2B · Sales +34%
- Free cash flow, 12 months$4.2B
- Free-cash-flow yield5.3%
- Free-cash-flow margin10%
- Gross margin37%
- Operating margin8%
- Return on invested capital6%
- Return on equity11%
- Sales growth (latest quarter vs year-ago quarter)+34%
- Net debt / EBITDA2.1×
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.
HPE is outside our quality screen
One text when a published rule fires on one of the 333 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.