HPE Price Forecast Based on Dividend Discount Model

The Dividend Discount Model (DDM) is a valuation model that attempts to determine a fair share price for a stock, based on the dividend it provides in comparison to several company-specific metrics indicative of the riskiness of the stock and the financial health of the company. Regarding Hewlett Packard Enterprise Co, the DDM model generated by StockNews estimates a return of positive 1.23% in comparison to its current price. Digging deeper, the aspects of Hewlett Packard Enterprise Co's dividend discount model that we found most interesting were:

• As for its position relative to other Technology stocks that issue dividends, Hewlett Packard Enterprise Co offers a higher dividend yield than 92.86% of them.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Technology sector, the expected return of 1.23%, based on the stock's current share price and target price based on a dividend discount model, is greater than 78.57% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, Hewlett Packard Enterprise Co bears a discount rate, according to our calculations, lower than 78.57% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Beta, a measure of volatility relative to the stock market overall, is lower for HPE than it is for merely 17.46% of other equities in the Technology sector that also issue dividends.

HPE Dividends vs. Peers