Hewlett Packard Enterprise Company (HPE) Company Bio
Hewlett Packard Enterprise Company offers IT consulting and technology services. The company was founded in 2014 and is based in Palo Alto, California. Hewlett Packard Enterprise Company operates as a subsidiary of Hewlett-Packard Company.
HPE Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for HPE, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Hewlett Packard Enterprise Co ranked in the 12th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Hewlett Packard Enterprise Co ended up being:
Its compound free cash flow growth rate, as measured over the past 4.99 years, is -0.04% -- higher than only 19.16% of stocks in our DCF forecasting set.
50% of the company's capital comes from equity, which is greater than just 20.7% of stocks in our cash flow based forecasting set.
As a business, Hewlett Packard Enterprise Co experienced a tax rate of about 158% over the past twelve months; relative to its sector (Technology), this tax rate is higher than 98.68% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as HPE, try FARO, PLT, PTC, SAP, and SOL.
Hewlett Packard Enterprise Co (NYSE: HPE) reported two upbeat quarters in the second half of fiscal 2020 and is poised to benefit as enterprise IT spending recovers in 2021, according to JPMorgan.The Hewlett Packard Enterprise Analyst: Paul Coster upgraded Hewlett Packard Enterprise from Neutral to Overweight, while raising the price target from $13 to $16.The Hewlett Packard Enterprise Thesis: The company has executed cost-saving initiatives, made a "well-timed acquisition in the SD-WAN space," and is leveraging the high performance computing (HPC) opportunity, Coster said in the note."HPE's execution surprised positively in the two recent quarters, with the firm making good progress on the $800 million cost-saving initiative, stabilizing results in servers and storage, posting strong ...
Hewlett Packard Enterprise Co (HPE) Jefferies Virtual Software Bus Tour January 13, 2020, 18:00 ET Company Participants Marcus Kupferschmidt - Director, IR and Business Intelligence Kumar Sreekanti - CTO & Head, Software Conference Call Participants Brent Thill - Jefferies Presentation Brent Thill Welcome back to the Jefferies software conference. We're...
SA Transcripts on Seeking Alpha | January 14, 2021