Hewlett Packard Enterprise Co (HPE) Fair Value & Analysis

Technology · US · Market cap $65.1B · ISIN US42824C1099

What is Hewlett Packard Enterprise Co really worth?

Hewlett Packard Enterprise Co HPE · US

Price$54.44

Fair Value$2.32

Upside−95.7% ⚠

Quality45/100

Structural break: The valuation model sees a lasting decline in earnings power for this stock, the confidence band is broken. Treat the target with caution.

Below-average quality, and trading another 2,247% above our fair value of $2.32.

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Strengths

✓Moderate debt · generates free cash flow

Risks

!Mixed Growth (revenue 5y +4.9 %/yr)

!Thin margins · 4.0% net margin

!Mixed vs. peers (7/15)

!Narrow moat 31/100

!Evidence only low, so the estimate is less certain

!The models disagree: range $0.9000 to $7.16

!Weak on past: 25 out of 100

For context

·1.00% dividend yield

Evidence: Low Range $0.9000 – $7.16

Fair value as of: Aug 30, 2026

From 21 valuation models · updated 6 days ago

Share price +3.9% over the past month.

What runs behind every stock

26 valuation models 8 families, DCF to NCAV 37 quality factors margins, balance sheet, cashflow, debt 6 AI factors moat, what no ratio measures 2,000+ data points verified, per stock, median

69 individual criteria per stock, every one traceable See the method →

What matters now

The price sits above even our optimistic bull case ($7.16). The favourable scenario is already priced in.
The model range is unusually wide ($0.9000 to $7.16). The outcome hinges heavily on assumptions, so read the point estimate with caution.
The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
Solid but not exceptional quality (45/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 30, 2026.

How to read this chart

60‑month range $10.83 – $59.82 · fair‑value band $0.9000 – $7.16 · the $54.44 price screens above the $2.32 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 30, 2026.

Full chart & analysis →

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Analysis

Hewlett Packard Enterprise Co (HPE) currently trades at $54.44, while our model-based Fair Value estimate is $2.32, implying the stock looks roughly 2,247.4% overvalued today. The Quality Score stands at 45/100 (below-average quality), in the Technology sector. Bull case: the Asset-Based group reads highest at a median of $12.49 per share, and 0 of the 19 models we run sit above the $54.44 price. Bear case: the Earnings-Based group reads lowest at $0.4400, and 19 of the 19 models stay below the price. Evidence for this calculation is low.

Over the trailing twelve months, Hewlett Packard Enterprise Co generated revenue of $35.7B at a net margin of −0.3%. Revenue grew 18.4% year over year. It earns a return on equity of −0.5%. Net debt stands at $18.3B. Fundamentals as of Aug 30, 2026

Our scenario range runs from $0.9000 (bear case) to $7.16 (bull case); at $54.44, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. The share trades about 15% below its 52-week high and 219% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at −52% fair-value upside, at −96%, HPE screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 10 months have passed since. In that time the company retained roughly $0.4430 per share, which is 19.1 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Note: the current price implies far more future growth than the conservative anchors of our models allow (base growth is deliberately capped, we do not regard such extreme rates as sustainable). Our models are not designed for expectations this high; that is why the individual models scatter extremely ($0.4400 to $50.50). Read the values as a conservative anchor, not as a price target.

Model Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence

Highest evidence

FCF DCF — — $0.7000 77

Residual Income $12.51 $11.58 $7.82 76

Growth DCF — — $0.5200 75

All 21 models by family

DCF Models

FCF DCF — — $0.7000 77

5Y Revenue Exit — $3.87 $10.84 69

5Y EBITDA Exit $16.59 $33.52 $56.44 72

10Y Revenue Exit — $1.20 $5.46 64

10Y EBITDA Exit $8.42 $20.39 $34.11 65

Earnings-Based

Graham-Dodd $0.2900 $0.4400 $0.5300 67

EPV $1.59 $3.37 $4.92 70

Dividend Discount

Gordon GGM $5.52 $6.40 $7.44 69

DDM Multi-Stage $5.52 $7.23 $9.43 67

Multiples

P/E Multiple $0.9000 $1.21 $1.51 63

P/S Multiple $0.5500 $0.7300 $0.9100 58

P/B Multiple $0.5500 $0.7300 $0.9100 55

EV/EBIT $13.30 $20.75 $28.20 65

EV/EBITDA $35.61 $50.50 $65.39 67

EV/Revenue $2.25 $7.09 $11.93 49

Asset-Based

NCAV (Graham) $9.32 $12.49 $18.64 54

Growth DCF

Growth DCF — — $0.5200 75

Rev-Margin DCF — $3.98 $9.86 69

Economic Profit

Residual Income $12.51 $11.58 $7.82 76

ROIC Compounder $1.59 $3.37 $4.92 69

Growth Earnings

Growth-Adj P/E $0.6300 $0.9000 $1.17 67

Widest divergence: Asset-Based ($12.49) versus Earnings-Based ($0.4400). Highest evidence: FCF DCF (77).

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Key figures & financial health

P/E ratio 50.9

P/S ratio 0.08 P/E × margin

EPS (TTM) $1.07 price ÷ EPS = P/E 50.9

Dividend yield 1.0% payout 50.9%

Net margin 0.2% FY2025

Return on equity −0.5% TTM

More key figures

Profitability

Return on assets (EBIT) 3.4% avg 5y

Operating margin 7.6% TTM

Growth

Revenue (TTM) $35.7B TTM

Revenue growth (YoY) +18.4% 3y avg +6.9%

EPS growth (YoY) −30.3%

Balance sheet & cash flow

Free cash flow $627M FY2025

Net debt $18.3B FY2025 · ≈ 29.2 yrs of FCF

Figures from reported company fundamentals · as of Aug 30, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 45/100

Of which business quality 45 · Market factors (momentum, volatility) 67

Profitability 20

Margins and returns on capital today

Quality Growth 33

Are margins and returns improving?

Cashflow 40

Earnings quality: real cash, not paper profit

Fin. Strength 44

Balance sheet, leverage, solvency risk

Investment 62

Disciplined investing over empire-building

Low Volatility 22

Calm price path (market factor)

Momentum 84

Price trend over the last 3–12 months (market factor)

52W Momentum 89

Distance to the 52-week high (market factor)

Net Issuance 86

Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Full company description

Hewlett Packard Enterprise Company, together with its subsidiaries, develops intelligent solutions in the United States, the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and internationally. It operates in five segments: Server, Hybrid Cloud, Networking, Financial Services, and Corporate Investments and Other. The company offers general-purpose servers, workload-optimized servers, and integrated systems, including HPE ProLiant Rack and Tower servers; HPE Synergy; HPE Scale Up servers; HPE Edgeline servers; HPE Cray EX; HPE Cray XD; and HPE NonStop. It also provides cloud-native and hybrid solutions, such as HPE Alletra Storage; HPE InfoSight; HPE CloudPhysics; and HPE GreenLake. In addition, the company develops and sells networking and security products and services comprising hardware products, which include Wi-Fi and private cellular access points, MX and PTX routers, and gateways, as well as QFX, EX, and CX switches; software products, such as Mist and Aruba Central; and services comprising professional, maintenance, support services, management software, and education and training programs. Further, it offers investment solutions, including leasing, financing, IT consumption, utility programs, and asset management services, as well as supports financial solutions for on-premise flexible consumption models. The company serves commercial and large enterprise groups, as well as business and public sector enterprises. It sells its products through resellers, distribution partners, master area partners, original equipment manufacturers, independent software vendors, systems integrators, and advisory firms. The company was founded in 1939 and is headquartered in Spring, Texas.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hewlett Packard Enterprise Co reported revenue of $34.3B in FY2025 versus $27.9B in FY2021, a compound +5.3%/yr. Reported net income was $57.0M in FY2025, compounding −64.1%/yr from FY2021.

Growth Quality 64/100

Revenue is growing, but margins or cash flow do not fully confirm the trend.

Latest Revenue (FY 2025)

$34.3B

Latest YoY

+14.1%

Avg. revenue growth/yr (3Y) ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.

+6.9%

Avg. revenue growth/yr (5Y) ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.

+4.9%

Avg. revenue growth/yr (13Y) ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.

−4.3%

Value creation/yr (5Y) ⓘEarnings growth per share (CAGR 5 years, EBIT basis) plus dividend yield: value created per share and year.

−4.4% (−5.4 + 1.0)

Revenue +5.3%/yr

FY21 $27.9B

FY22 $28.1B

FY23 $29.1B

FY24 $30.1B

FY25 $34.3B

Net income −64.1%/yr

FY21 $3.4B

FY22 $868M

FY23 $2.0B

FY24 $2.6B

FY25 $57.0M

Character of growth · EPS growth decomposed (2014-2025) −1.5 % p.a.

Revenue per share −0.9 %

of which total revenue −4.2 % · buybacks/dilution +3.5 %

EBIT margin +0.0 %

Tax rate +0.2 %

Residual (interest, one-offs) −0.9 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

HPE screens 2,247% overvalued. Compare with Cisco Systems, Inc →

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Hewlett Packard Enterprise Co · Fair Value
$2.32 −2247%Fair Value
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Cite: Fair Value Calculator (2026). "Hewlett Packard Enterprise Co Fair Value". https://www.fairvalue-calculator.com/stock/HPE

Peer Group

Communication Equipment · 302 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 45 · Below median

Fair Value upside −96% · Bottom 25%

Return on equity (TTM) 6% · Above median

Return on assets 2% · Above median

Net margin (TTM) 4% · Above median

Operating margin (TTM) 9% · Above median

Revenue growth 40% · Top 25%

Dividend yield (TTM) 1.0% · Below median

Debt / equity 0.72× · Higher than 75% of peers

Valuation Multiples vs Communication Equipment median · lower = cheaper

P/E (TTM) 50.9× · Pricier than median

P/B 2.64× · Pricier than median

P/S (TTM) 1.68× · Pricier than median

P/FCF 103.8× · Pricier than 75% of peers

EV/EBITDA 13.7× · Cheaper than median

PEG 0.85× · Cheaper than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

This stock

Sector peers

VALUE0 · sector 0

FUTURE100 · sector 39

PAST25 · sector 15

HEALTH64 · sector 98

DIVIDEND20 · sector 22

VALUE 0: the price sits above our fair-value range.

Insider activity: 42/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

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Frequently asked questions

Is Hewlett Packard Enterprise Co (HPE) overvalued or undervalued?

As of Aug 30, 2026, our model estimates a fair value of $2.32 versus a price of $54.44, about −96% upside (overvalued).

What is the fair value of HPE?

Our model-based fair value for Hewlett Packard Enterprise Co is $2.32 (as of Aug 30, 2026), built from audited fundamentals. The current price: $54.44.

What is the quality score of HPE?

Hewlett Packard Enterprise Co has a Quality Score of 45/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.

What is the revenue of Hewlett Packard Enterprise Co (HPE)?

Hewlett Packard Enterprise Co reported trailing-twelve-month revenue of about $35.7B (latest available figure, as of Aug 30, 2026).

What is the net profit margin of HPE?

The net profit margin of Hewlett Packard Enterprise Co is about −0.3%, meaning it is currently running at a net loss. Based on the latest reported figures.

Does Hewlett Packard Enterprise Co pay a dividend?

Hewlett Packard Enterprise Co currently shows a dividend yield of about 1.00% relative to its recent price (as of Aug 30, 2026).

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