NYSE · HPE
Technology · Computer Hardware
$61.31▲ 0.91% ($0.55)today
As of 9:54 AM ET
Market cap
$81.19B
To support a price of $61.31, this model requires revenue to grow by 16.18%/yr over the next 10 years, compounded annually.
Historical revenue grew by 5.33%/yr over the past 4 years. The required annual growth rate is 10.85 percentage points higher.
Selected forecast · Base scenario
8.85%/yr · actual 10-year annualized revenue growth
Year 1 growth: 13.87%
Market-implied · Base operating assumptions + edited margins
16.18%/yr · flat 10-year annualized revenue growth
Reverse DCF solves revenue growth itself using Base operating assumptions and your edited margins. Changing forecast growth alone does not change the implied rate. This is a model-implied requirement, not an analyst forecast.
Price used
$61.31
Estimated value / share
$31.19
Base scenario
This estimate is 49.13% below the price used.
Latest quarterly growth differs materially from the latest annual pace. It remains an observed growth input; review whether acceleration or a change in the business explains it.
Year 1 growth 13.87% · Ending margin 8.27% · Discount rate 10.65%
Assumption scenarios, not statistical confidence intervals.
Estimated from future revenue, operating margins, and the investment needed to support them.
There is not a stable run of positive FCFF to anchor a direct cash-flow CAGR, so the model should start from revenue and margin assumptions instead.
Is FCFF positive and has it been for 3+ consecutive years? Latest FCFF is not positive.
HPE
Price vs Fundamentals
The stock rose 142.98% over the last year. Revenue grew 26.62% over the trailing twelve months. Operating margin moved from 6.17% to 8.27%. Free cash flow grew 1,747.11% over the trailing twelve months.
The stock is trading toward the richer end of its historical P/FCF range (71st percentile) while business metrics are improving. More of the upside is already embedded in the multiple now.
Operating margin is at 8.27% — continued expansion would be needed to justify the premium. Revenue growth of 26.62% is encouraging, but any deceleration puts the stretched multiple at risk. This read changes if revenue, margins, and cash flow continue to improve faster than expected — in that case the richer multiple could still prove conservative.
Performance
Company profile
Hewlett Packard Enterprise (HPE) is a global technology firm that provides comprehensive solutions, empowering clients across the Americas, Europe, the Middle East, Africa, Asia Pacific, and Japan to efficiently capture, analyze, and utilize their data.
Market multiples
Stock splits
Every 1000 shares became 1289
Every 2500 shares became 3337
Profitability & growth
Analyst consensus
18
Buy
20
Hold
1
Sell
Analyst ratings tend to be lagging indicators. Use as one signal among many.
Earnings
Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.
Next report
Dec 3, 2026
Q4 FY26 · EPS est $1.27 · Revenue est $14.34B
View
Dividends
$0.57/shareQuarterlyDividend Achiever · 10yrStretchedHPE pays a dividend with a 0.93% dividend yield, 10 consecutive years of growth, growing at 3.5% annually, covered 0.8× by free cash flow.
Dividend Yield
0.93%
Annual Div / Share
$0.57
5yr CAGR
+3.5%
Doubles every ~20.2yr
Payout Ratio
31.06%
Stretched
Dividend Growth Rate
3yr CAGR
+5.9%
5yr CAGR
+3.5%
10yr CAGR
+16.12%
Dividend History
Annualized dividend cycles per share
Income Projection
Today
$1/mo
In 5 yrs
$1/mo
In 10 yrs
$1/mo
| Today | In 5 yrs | In 10 yrs |
|---|---|---|
$9/yr $1/mo | $11/yr+19% $1/mo | $13/yr+41% $1/mo |
Yield-on-cost grows from 0.93% → 1.31% over 10yr
Analysis
Dividend Achiever
HPE has raised its dividend for 10 consecutive years — qualifying as a Dividend Achiever, demonstrating long-term commitment to shareholder income.
Dividend exceeds free cash flow
Free cash flow covers only 0.79× the dividend. The company is paying out more than it generates in cash, which is unsustainable without borrowing or asset sales.
P/E
32.27
EPS (TTM)
$1.90
Next earnings
Dec 3, 2026