Hewlett Packard Enterprise Company (HPE) stock analysis
Communication Equipment. Scored on the same transparent model behind the daily rankings.
★
HPE
Hewlett Packard Enterprise Company · Communication Equipment
60.0Score
$73.46Oct 9 close$97.5B
1Y Target$72.03Analyst consensus · 21 analysts
5Y Target$105.46Compound horizon
10Y Target$156.44Long-dated conviction
FCF$4.2bTTM · 07/26B
FCF $4.2b — solid, comfortably covers operations and capital return · TTM from SEC filings (OCF − CapEx), four quarters to 07/26.
Rev+26.6%TTM YoYA-
Revenue +26.6% — strong growth, well above S&P median (~7%) · Latest four quarters of revenue vs the four before them, from SEC filings.
D/E0.76C+
D/E 0.76 — above the Technology debt median (≈75th pctile)
P/E37.9xB
P/E 37.9 — near the Technology median (≈60th pctile)
PEG0.57A-
PEG 0.57 — strong; the growth comes cheap
Targets: 1-year is analyst consensus where covered, 5- and 10-year are model estimates; the DCF is a cross-check, not a target. Methodology
Quality-growth score · 60
Quality50.9
Growth85.9
Value49.4
Why this score
Raising its dividend
Entry · Margin of safety
52-week rangeNear 52-week high
0% off the 12-month high
vs DCF fair value39% aboveest. fair value ~$53
What the price assumes: free cash flow growing about 23% next year, slowing to 4% a year by year ten — vs a starting rate of ~23% our model takes as the middle of three readings — analyst estimates, last year's revenue growth, and the company's own multi-year record.
Quality signals
Gross profitability28% · Bgross profit ÷ total assets — not in the score
ROIC4.4% · C+return on invested capital — leads the quality score
Model-generatedFrom reported fundamentals, checked against the figures above · Editorial standards
Why now
Communication Equipment · market cap $97.5b. Trading near 52-week high of $73.56 — momentum setup, limited technical margin of safety. Revenue growing +27% — in hypergrowth territory. PEG 0.57 — paying under fair value for the growth rate. 21 sell-side analysts rate this a Buy with a mean 1-yr target of $72.03 (implying -2% upside).
Moat
ROE 11% meets the long-run market sustainable threshold — solid but not differentiated; the durability comes from elsewhere. FCF converts 149% of net income — earnings translate cleanly into cash. $97.5b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk
Trading within 0% of the 52-week high — limited technical margin of safety; a momentum reversal would test conviction. Beta 1.40 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return. Trailing P/E 38x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.
Horizon
1-3 yr $72.03 (21-analyst consensus) — fundamentals + valuation re-rating. 5 yr $105.46 at ~7% CAGR — compounding case rests on the competitive position widening. 10 yr $156.44 if current growth sustains into durable earnings power.
HPE vs the Top Picks average
Pillar
HPE
Book avg
Diff
Quality
51
83
-32
Growth
86
89
-3
Value
49
76
-27
Average of today's Top 30 (mean score 82.6); size and sector limits also decide the book.
Score history · HPE
Trend
+5.4 over 81 daily scores
From 54.6 (Jun 22) → 60.0 (now)
One point per daily run; read From → To for the actual range.
HPE at a glance
Same audited fundamentals as the score, unless a card says otherwise.
Analyst estimate revisions
30-day change
+2.4%
90-day change
+17.8%
Forward EPS estimate
$4.71
Over the last 90 days, what analysts expect HPE to earn is materially higher (+17.8%). The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.
Estimates move both ways and are not part of the Bull Rankings score. Biggest movers →
Position sizing · HPE
$
%
%
Shares to buy
27
Position size
$1,983
4.0% of portfolio
Stop price
$55.09
25% below $73.46
$ at risk if stopped
$495.85
budget $500.00 · 1% of portfolio
Math only: excludes commissions, slippage and gap risk. Inputs stay in your browser.
Hewlett Packard Enterprise Company (HPE): score, valuation & FAQ
Hewlett Packard Enterprise Company (HPE) is a Communication Equipment company that scores 60 out of 100 on the Bull Rankings quality-growth model — a middling reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are Rev (A-) and PEG (A-). On valuation, HPE sits about 39% above our discounted-cash-flow fair value — the current price implies free cash flow growing about 23% next year, slowing to 4% a year by year ten.
Is HPE a good stock to buy?
Bull Rankings scores HPE 60 out of 100 on its quality-growth model, which is a middling reading. That is driven by Rev (A-) and PEG (A-). A score is a quantitative screen of Hewlett Packard Enterprise Company's fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does HPE score 60 on Bull Rankings?
The score leans on growth at 85.9 out of 100, with value the weakest pillar at 49.4 — the three combine geometrically, so a weak one cannot be papered over by a strong one. HPE earns its highest marks on Rev (A-) and PEG (A-). Each signal is graded against sector-aware thresholds rather than one absolute bar, so HPE is measured against Communication Equipment peers, not against the market as a whole.
Is HPE overvalued or undervalued?
Based on $73.46, HPE sits about 39% above our discounted-cash-flow fair value — the current price implies free cash flow growing about 23% next year, slowing to 4% a year by year ten. It trades at a 37.9x P/E (graded B). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in HPE?
Trading within 0% of the 52-week high — limited technical margin of safety; a momentum reversal would test conviction. Beta 1.40 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return. Trailing P/E 38x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.