HPE Analysis — TradeApes

Hewlett Packard Enterprise Co (HPE)

Technology Computer Hardware

$49.20 close · Jun 06, 2026

Above 50 & 200 SMA

52W -12.4% from High

Methodology Breakdown

Triangulated across multiple voting methods. The breakdown below shows each method's output and which ones voted on the final verdict.

Method	Value	Role
DCF (Base Case)	$29.71	REFERENCE
DCF (TTM-anchored)	$28.04	REFERENCE
Peer Multiples	$22.94	REFERENCE
Earnings Power Value	$15.01	REFERENCE
Book Value Anchor	$52.85	REFERENCE
Earnings Anchor	$21.21	REFERENCE

Triangulation spread: 24% across voting methods.

⚠️

Overvalued +74.1%

Market cap (70.45B) is 74.1% above the bull-case DCF fair value (40.46B)

Jun 05

Health Score

Out of 100

Mixed

Pillar Scores

Financial Strength 25

Operating Trend 50

Valuation 65

Capital Allocation 45

Risk Management 80

Positives

↑ Historically cheap — EV/EBITDA in bottom 25% of its 5-year range +5.0

↑ High FCF yield — above 7%, strong cash return relative to price paid +3.8

↑ Free cash flow positive — business generates real spendable cash +2.5

Concerns

↓ Extreme P/E — above 45×, very high expectations embedded in price -5.0

↓ High leverage — net debt/EBITDA between 3× and 5× -3.8

↓ Weak interest coverage — earnings barely cover debt service -3.8

Signal contribution: +12.1 from strengths -15.4 from concerns

Health Score Trend 6 snapshots

Financials

TTM Financials

Revenue ?Total sales generated from the company's primary business activities over the trailing twelve months.	38.79B
Gross Profit ?Revenue minus cost of goods sold. What remains before operating expenses — reflects pricing power and production efficiency.	—
Operating Income ?Profit from core business operations after all operating expenses (EBIT). Excludes interest and taxes.	1.46B
Net Income ?Bottom-line profit after all expenses, interest, and taxes are deducted from revenue.	1.56B
Free Cash Flow ?Operating cash flow minus capital expenditures. The actual cash the business generates after maintaining its assets — the truest measure of profitability.	6.36B
EBITDA ?Earnings before interest, taxes, depreciation & amortization. A proxy for operating cash earnings that strips out accounting and financing differences.	4.77B
Total Debt ?Combined short-term and long-term interest-bearing debt obligations. Compare against cash and earnings to gauge leverage risk.	21.25B
Cash & Equivalents ?Highly liquid assets on hand — cash, money market funds, and short-term securities. The company's immediate financial cushion.	5.29B

Valuation

Market Cap	70.45B
Enterprise Value	88.12B
EV / Revenue	2.3x
EV / EBITDA	18.5x
P/E (TTM)	45.3x
Forward P/E	—
PEG	—
P/FCF	11.1x
FCF Yield	9.0%

EV/EBITDA vs history — 26% percentile (historically cheap)

CheapMidExpensive

EV/Sales vs history — 61% percentile (mid-range)

CheapMidExpensive

P/Book vs history — 83% percentile (historically expensive)

CheapMidExpensive

Relative Valuation

Using relative multiples

EV / Revenue

2.3x

Book Value / Share

$17.66

Price / Book

2.8x

P/E (TTM)

45.3x

Price / Sales

1.8x

Key Metrics

Gross Margin ?Gross profit as a % of revenue. Measures how efficiently the company produces its goods or services — higher is better.	—
EBITDA Margin ?EBITDA as a % of revenue. Shows core operating profitability before accounting adjustments — useful for comparing across industries.	12.3%
Net Margin ?Net income as a % of revenue. The ultimate measure of overall profitability after every expense, interest payment, and tax is accounted for.	4.0%
FCF Margin ?Free cash flow as a % of revenue. Shows how much of each dollar of revenue converts into real, spendable cash.	16.4%
Revenue Growth (YoY) ?Year-over-year change in total revenue. Measures business momentum — sustained growth above 15% is typically considered strong.	22.6%
Net Income Growth (YoY) ?Year-over-year change in net income. Shows whether profits are growing faster or slower than revenue — a key indicator of improving or deteriorating quality.	6.9%
Piotroski F-Score ?Score from 0–9 measuring financial strength across profitability, leverage, and efficiency signals. 8–9 = strong, 0–2 = distressed.	4 / 9
Altman Z-Score ?Bankruptcy risk model. Above 2.99 = safe zone, 1.81–2.99 = grey zone, below 1.81 = distress signal. Most useful for manufacturing companies.	—

Community Sentiment

Not enough ratings yet.
Be the first to rate this company below.

Quarterly Financials

Metric	Q2 '26	Q1 '26	Q4 '25	Q3 '25	Q2 '25	Q1 '26	Q4 '24	Q3 '25	Q2 '25	Q1 '25	Q4 '24	Q3 '24
Revenue ?Total quarterly sales from primary business operations.	10.68B	9.30B	9.68B	9.14B	7.63B	7.85B	8.46B	7.71B	7.20B	6.76B	7.35B	7.00B
Gross Profit ?Quarterly revenue minus cost of goods sold.	—	—	—	—	—	—	—	—	—	—	—	—
Operating Income ?Quarterly profit from core operations before interest and taxes (EBIT).	747.0M	470.0M	-8.0M	247.0M	-1.11B	433.0M	693.0M	547.0M	425.0M	525.0M	507.0M	471.0M
Net Income ?Quarterly bottom-line profit after all expenses and taxes.	624.0M	452.0M	175.0M	305.0M	-1.05B	627.0M	1.37B	512.0M	314.0M	387.0M	642.0M	464.0M
FCF ?Quarterly free cash flow: operating cash minus capital expenditures.	1.41B	1.18B	2.47B	1.31B	-461.0M	-390.0M	2.03B	1.15B	1.09B	64.0M	2.84B	1.53B

Revenue & Free Cash Flow

Market Cap vs. DCF Fair Value Band

Shaded region = bear-to-bull DCF range. Line = actual market cap.

Want to track HPE in your own watchlist?

Create a free account to save companies, refresh fundamentals on demand, and record your investment thesis.

Get stocks like HPE in your inbox every Sunday

11 sector-leading stocks delivered to your inbox every Sunday. Free.

No spam. Unsubscribe anytime.

Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Scores and valuations are derived from SEC filings and publicly available data. Always do your own research before making investment decisions.