Hewlett Packard Enterprise Values and Financial Analysis

Hewlett Packard Enterprise (HPE) is a technology company that operates with a strong set of values. These values are reflected in the company's mission statement, which emphasizes innovation and customer satisfaction.

HPE's mission is to engineer a better world through technology and innovation. This mission is guided by the company's five core values: integrity, customer focus, teamwork, accountability, and respect for the individual.

Hewlett Packard Enterprise's share price is trading below its estimated fair value. HPE is trading at $21.36, which is below our estimate of fair value at $28.97.

The company's key valuation metric is its Price-To-Earnings (PE) Ratio, which is 11x. This is calculated by dividing HPE's market cap by their current earnings.

HPE's PE Ratio is significantly lower than the peer average of 56.8x. In fact, it's even lower than some of its peers, such as NTAP NetApp's 21.9x and HPQ HP's 11x.

The company's Enterprise Value/Revenue ratio is 1.1x, and its Enterprise Value/EBITDA ratio is 6.5x. Its PEG Ratio is 27.3x.

HPE's PE Ratio is also lower than the Global Tech industry average of 21x. This suggests that the company is undervalued compared to its peers and the industry as a whole.

Here's a comparison of HPE's valuation metrics with those of its peers:

According to the consensus of 12 analysts, HPE has 6.68% upside to fair value with a price target of $24.48 per share.

Hewlett Packard Enterprise has a consensus rating of Leans Bullish, based on 6 Buy ratings, 6 Hold ratings, and 0 Sell ratings.

Analysts predict an estimated upside of 6.68% from the current price of $22.95, with a consensus price target of $24.48.

The lowest downside price target is $19.00, representing a 100% downside risk from the current price of $22.95.

Analysts' consensus price targets have varied over time, but generally remain within a 5-15% range above the current share price.

In recent months, the estimated upside has ranged from 6.68% to 17.54%, indicating varying levels of confidence in the company's future performance.

Here is a summary of the analyst consensus price targets:

Hewlett Packard Enterprise's fair value analysis is a crucial aspect of understanding its stock value. According to the consensus of 12 analysts, the company has a 6.68% upside to fair value with a price target of $24.48 per share.

The intrinsic value of one HPE stock under the Base Case scenario is $36.93USD, making it undervalued by 42% compared to the current market price of $21.36 USD. This significant undervaluation presents a buying opportunity for investors.

Another analyst consensus suggests that HPE has a 17.54% upside to fair value with the same price target of $24.48 per share. This indicates a strong potential for growth in the company's stock value.

HPE's fair value analysis is also compared to its peers, and it's evident that the company is trading at a significantly lower price-to-earnings ratio compared to its peers. For instance, HPE's PE ratio is 11x, while the peer average is 56.8x.

Here's a comparison of HPE's PE ratio with its peers:

This comparison highlights HPE's relatively low PE ratio compared to its peers, making it an attractive investment opportunity.

Hewlett Packard Enterprise has grown year-over-year revenues for 3 quarters straight, with the most recent quarter reporting revenues of $8.5B.

The company's revenue growth has been steady, with revenues increasing from $7.4B to $8.5B in a single quarter. This is a significant increase of $1.1B.

In terms of earnings, Hewlett Packard Enterprise has grown year-over-year earnings for 2 quarters straight, with the most recent quarter reporting earnings per share of $0.99.

Here's a breakdown of the company's revenue growth over the past few quarters:

This revenue growth is a positive sign for the company, indicating that it is on the right track in terms of financial performance.

Hewlett Packard Enterprise has a share repurchase program in place.

This program can have a significant impact on the company's share price, as a smaller share count typically results in higher earnings per share.

The scale of the buyback program is a key factor in determining its effectiveness, and a larger program can lead to more substantial benefits.

A smaller share count can also make the company's financial performance appear stronger, as the same level of earnings is spread across fewer shares.

The benefits of a share buyback program are often seen in the company's earnings per share, which can increase when the share count drops.

Hewlett Packard Enterprise has grown its revenue year-over-year for 3 quarters straight, with the most recent quarter reporting $8.5B in revenue.

The company's earnings have also been on the rise, with year-over-year earnings growth for 2 quarters straight, and the most recent quarter reporting earnings per share of $0.99.

Here's a breakdown of Hewlett Packard Enterprise's revenue growth over the past year:

This consistent revenue growth is a positive sign for the company's financial health.

Hewlett Packard Enterprise's cash flow operations have also been steady, with $4.6B in cash flow operations for the trailing 12 months ending 2022-10-31, and $2B in cash flow operations for the most recent quarter.