Intrinsic value of Hewlett Packard Enterprise - HPE

Previous Close

$16.27

  Intrinsic Value

$17.63

stock screener

  Rating & Target

hold

+8%

Previous close

$16.27

 
Intrinsic value

$17.63

 
Up/down potential

+8%

 
Rating

hold

We calculate the intrinsic value of HPE stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2017), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 26.8

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  29,448
  30,126
  30,900
  31,769
  32,732
  33,789
  34,940
  36,185
  37,527
  38,968
  40,508
  42,153
  43,903
  45,763
  47,737
  49,829
  52,044
  54,386
  56,860
  59,473
  62,229
  65,137
  68,201
  71,430
  74,830
  78,411
  82,179
  86,145
  90,317
  94,705
Variable operating expenses, $m
  11,831
  12,060
  12,322
  12,617
  12,943
  13,301
  13,691
  14,113
  14,567
  15,055
  13,721
  14,278
  14,871
  15,501
  16,170
  16,878
  17,628
  18,422
  19,260
  20,145
  21,078
  22,063
  23,101
  24,195
  25,347
  26,559
  27,836
  29,179
  30,592
  32,079
Fixed operating expenses, $m
  17,082
  17,458
  17,842
  18,234
  18,635
  19,045
  19,464
  19,892
  20,330
  20,777
  21,234
  21,702
  22,179
  22,667
  23,166
  23,675
  24,196
  24,728
  25,272
  25,828
  26,397
  26,977
  27,571
  28,177
  28,797
  29,431
  30,078
  30,740
  31,416
  32,108
Total operating expenses, $m
  28,913
  29,518
  30,164
  30,851
  31,578
  32,346
  33,155
  34,005
  34,897
  35,832
  34,955
  35,980
  37,050
  38,168
  39,336
  40,553
  41,824
  43,150
  44,532
  45,973
  47,475
  49,040
  50,672
  52,372
  54,144
  55,990
  57,914
  59,919
  62,008
  64,187
Operating income, $m
  536
  608
  736
  918
  1,154
  1,443
  1,785
  2,180
  2,630
  3,135
  5,553
  6,173
  6,853
  7,595
  8,402
  9,276
  10,219
  11,236
  12,328
  13,500
  14,754
  16,096
  17,529
  19,058
  20,686
  22,420
  24,265
  26,226
  28,308
  30,519
EBITDA, $m
  4,839
  4,967
  5,160
  5,414
  5,730
  6,107
  6,544
  7,043
  7,605
  8,229
  8,919
  9,676
  10,501
  11,398
  12,369
  13,417
  14,544
  15,755
  17,053
  18,442
  19,926
  21,509
  23,196
  24,993
  26,905
  28,936
  31,094
  33,384
  35,814
  38,389
Interest expense (income), $m
  415
  758
  800
  848
  903
  965
  1,033
  1,108
  1,190
  1,278
  1,374
  1,476
  1,585
  1,702
  1,826
  1,958
  2,099
  2,247
  2,404
  2,571
  2,746
  2,932
  3,128
  3,334
  3,552
  3,781
  4,022
  4,276
  4,544
  4,826
  5,122
Earnings before tax, $m
  -222
  -192
  -112
  15
  189
  410
  677
  991
  1,352
  1,762
  4,077
  4,588
  5,151
  5,769
  6,444
  7,177
  7,972
  8,831
  9,757
  10,753
  11,823
  12,969
  14,195
  15,506
  16,906
  18,398
  19,989
  21,682
  23,483
  25,397
Tax expense, $m
  0
  0
  0
  4
  51
  111
  183
  267
  365
  476
  1,101
  1,239
  1,391
  1,558
  1,740
  1,938
  2,153
  2,384
  2,634
  2,903
  3,192
  3,502
  3,833
  4,187
  4,564
  4,968
  5,397
  5,854
  6,340
  6,857
Net income, $m
  -222
  -192
  -112
  11
  138
  299
  494
  723
  987
  1,286
  2,976
  3,349
  3,760
  4,211
  4,704
  5,239
  5,820
  6,447
  7,123
  7,850
  8,630
  9,467
  10,362
  11,319
  12,341
  13,431
  14,592
  15,828
  17,142
  18,540

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  62,656
  64,097
  65,745
  67,594
  69,643
  71,892
  74,340
  76,990
  79,846
  82,910
  86,188
  89,686
  93,411
  97,369
  101,569
  106,020
  110,732
  115,714
  120,979
  126,538
  132,403
  138,589
  145,109
  151,978
  159,213
  166,831
  174,849
  183,287
  192,163
  201,500
Adjusted assets (=assets-cash), $m
  62,656
  64,097
  65,745
  67,594
  69,643
  71,892
  74,340
  76,990
  79,846
  82,910
  86,188
  89,686
  93,411
  97,369
  101,569
  106,020
  110,732
  115,714
  120,979
  126,538
  132,403
  138,589
  145,109
  151,978
  159,213
  166,831
  174,849
  183,287
  192,163
  201,500
Revenue / Adjusted assets
  0.470
  0.470
  0.470
  0.470
  0.470
  0.470
  0.470
  0.470
  0.470
  0.470
  0.470
  0.470
  0.470
  0.470
  0.470
  0.470
  0.470
  0.470
  0.470
  0.470
  0.470
  0.470
  0.470
  0.470
  0.470
  0.470
  0.470
  0.470
  0.470
  0.470
Average production assets, $m
  24,472
  25,034
  25,678
  26,400
  27,201
  28,079
  29,035
  30,070
  31,185
  32,382
  33,663
  35,029
  36,483
  38,029
  39,670
  41,408
  43,248
  45,195
  47,251
  49,422
  51,713
  54,129
  56,675
  59,358
  62,184
  65,159
  68,291
  71,586
  75,053
  78,700
Working capital, $m
  -3,828
  -3,916
  -4,017
  -4,130
  -4,255
  -4,393
  -4,542
  -4,704
  -4,879
  -5,066
  -5,266
  -5,480
  -5,707
  -5,949
  -6,206
  -6,478
  -6,766
  -7,070
  -7,392
  -7,731
  -8,090
  -8,468
  -8,866
  -9,286
  -9,728
  -10,193
  -10,683
  -11,199
  -11,741
  -12,312
Total debt, $m
  14,814
  15,704
  16,722
  17,865
  19,132
  20,521
  22,034
  23,672
  25,437
  27,330
  29,356
  31,518
  33,820
  36,266
  38,862
  41,612
  44,524
  47,603
  50,857
  54,292
  57,917
  61,740
  65,769
  70,014
  74,486
  79,194
  84,149
  89,363
  94,849
  100,619
Total liabilities, $m
  38,722
  39,612
  40,630
  41,773
  43,040
  44,429
  45,942
  47,580
  49,345
  51,238
  53,264
  55,426
  57,728
  60,174
  62,770
  65,520
  68,432
  71,511
  74,765
  78,200
  81,825
  85,648
  89,677
  93,922
  98,394
  103,102
  108,057
  113,271
  118,757
  124,527
Total equity, $m
  23,935
  24,485
  25,114
  25,821
  26,604
  27,463
  28,398
  29,410
  30,501
  31,672
  32,924
  34,260
  35,683
  37,195
  38,799
  40,500
  42,300
  44,203
  46,214
  48,337
  50,578
  52,941
  55,431
  58,056
  60,819
  63,729
  66,792
  70,016
  73,406
  76,973
Total liabilities and equity, $m
  62,657
  64,097
  65,744
  67,594
  69,644
  71,892
  74,340
  76,990
  79,846
  82,910
  86,188
  89,686
  93,411
  97,369
  101,569
  106,020
  110,732
  115,714
  120,979
  126,537
  132,403
  138,589
  145,108
  151,978
  159,213
  166,831
  174,849
  183,287
  192,163
  201,500
Debt-to-equity ratio
  0.620
  0.640
  0.670
  0.690
  0.720
  0.750
  0.780
  0.800
  0.830
  0.860
  0.890
  0.920
  0.950
  0.980
  1.000
  1.030
  1.050
  1.080
  1.100
  1.120
  1.150
  1.170
  1.190
  1.210
  1.220
  1.240
  1.260
  1.280
  1.290
  1.310
Adjusted equity ratio
  0.382
  0.382
  0.382
  0.382
  0.382
  0.382
  0.382
  0.382
  0.382
  0.382
  0.382
  0.382
  0.382
  0.382
  0.382
  0.382
  0.382
  0.382
  0.382
  0.382
  0.382
  0.382
  0.382
  0.382
  0.382
  0.382
  0.382
  0.382
  0.382
  0.382

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -222
  -192
  -112
  11
  138
  299
  494
  723
  987
  1,286
  2,976
  3,349
  3,760
  4,211
  4,704
  5,239
  5,820
  6,447
  7,123
  7,850
  8,630
  9,467
  10,362
  11,319
  12,341
  13,431
  14,592
  15,828
  17,142
  18,540
Depreciation, amort., depletion, $m
  4,303
  4,359
  4,424
  4,496
  4,576
  4,664
  4,759
  4,863
  4,974
  5,094
  3,366
  3,503
  3,648
  3,803
  3,967
  4,141
  4,325
  4,519
  4,725
  4,942
  5,171
  5,413
  5,668
  5,936
  6,218
  6,516
  6,829
  7,159
  7,505
  7,870
Funds from operations, $m
  4,081
  4,168
  4,312
  4,507
  4,714
  4,963
  5,253
  5,586
  5,961
  6,380
  6,343
  6,852
  7,409
  8,014
  8,671
  9,380
  10,145
  10,966
  11,848
  12,792
  13,802
  14,880
  16,030
  17,255
  18,559
  19,947
  21,421
  22,986
  24,648
  26,410
Change in working capital, $m
  -75
  -88
  -101
  -113
  -125
  -137
  -150
  -162
  -174
  -187
  -200
  -214
  -228
  -242
  -257
  -272
  -288
  -304
  -322
  -340
  -358
  -378
  -398
  -420
  -442
  -465
  -490
  -516
  -542
  -570
Cash from operations, $m
  4,156
  4,256
  4,412
  4,620
  4,839
  5,100
  5,403
  5,748
  6,136
  6,567
  6,543
  7,066
  7,636
  8,256
  8,928
  9,652
  10,433
  11,271
  12,170
  13,132
  14,160
  15,258
  16,428
  17,675
  19,002
  20,412
  21,911
  23,502
  25,190
  26,980
Maintenance CAPEX, $m
  -2,398
  -2,447
  -2,503
  -2,568
  -2,640
  -2,720
  -2,808
  -2,904
  -3,007
  -3,119
  -3,238
  -3,366
  -3,503
  -3,648
  -3,803
  -3,967
  -4,141
  -4,325
  -4,519
  -4,725
  -4,942
  -5,171
  -5,413
  -5,668
  -5,936
  -6,218
  -6,516
  -6,829
  -7,159
  -7,505
New CAPEX, $m
  -488
  -563
  -643
  -722
  -800
  -878
  -956
  -1,035
  -1,115
  -1,197
  -1,280
  -1,366
  -1,455
  -1,546
  -1,640
  -1,738
  -1,840
  -1,946
  -2,056
  -2,171
  -2,291
  -2,416
  -2,547
  -2,683
  -2,826
  -2,975
  -3,132
  -3,295
  -3,467
  -3,647
Cash from investing activities, $m
  -2,886
  -3,010
  -3,146
  -3,290
  -3,440
  -3,598
  -3,764
  -3,939
  -4,122
  -4,316
  -4,518
  -4,732
  -4,958
  -5,194
  -5,443
  -5,705
  -5,981
  -6,271
  -6,575
  -6,896
  -7,233
  -7,587
  -7,960
  -8,351
  -8,762
  -9,193
  -9,648
  -10,124
  -10,626
  -11,152
Free cash flow, $m
  1,270
  1,246
  1,266
  1,330
  1,399
  1,502
  1,639
  1,809
  2,014
  2,252
  2,024
  2,333
  2,679
  3,062
  3,484
  3,947
  4,452
  5,000
  5,594
  6,236
  6,927
  7,671
  8,469
  9,324
  10,240
  11,218
  12,263
  13,377
  14,564
  15,828
Issuance/(repayment) of debt, $m
  782
  891
  1,018
  1,143
  1,266
  1,390
  1,513
  1,638
  1,765
  1,894
  2,026
  2,162
  2,302
  2,446
  2,596
  2,751
  2,912
  3,079
  3,254
  3,435
  3,625
  3,823
  4,029
  4,245
  4,471
  4,708
  4,955
  5,214
  5,486
  5,770
Issuance/(repurchase) of shares, $m
  690
  742
  741
  695
  645
  560
  441
  289
  104
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  1,472
  1,633
  1,759
  1,838
  1,911
  1,950
  1,954
  1,927
  1,869
  1,894
  2,026
  2,162
  2,302
  2,446
  2,596
  2,751
  2,912
  3,079
  3,254
  3,435
  3,625
  3,823
  4,029
  4,245
  4,471
  4,708
  4,955
  5,214
  5,486
  5,770
Total cash flow (excl. dividends), $m
  2,742
  2,878
  3,025
  3,168
  3,310
  3,451
  3,593
  3,736
  3,882
  4,146
  4,050
  4,495
  4,980
  5,508
  6,080
  6,698
  7,363
  8,079
  8,848
  9,671
  10,552
  11,493
  12,498
  13,570
  14,711
  15,926
  17,218
  18,592
  20,050
  21,598
Retained Cash Flow (-), $m
  -690
  -742
  -741
  -706
  -783
  -859
  -935
  -1,012
  -1,091
  -1,171
  -1,252
  -1,336
  -1,423
  -1,512
  -1,604
  -1,700
  -1,800
  -1,903
  -2,011
  -2,123
  -2,241
  -2,363
  -2,491
  -2,624
  -2,764
  -2,910
  -3,063
  -3,223
  -3,391
  -3,567
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  289
  294
  301
  309
  318
  327
  338
  349
  362
  375
  390
  405
  422
  439
  458
  477
  498
  520
  544
  569
  595
  622
  651
  682
  714
  748
  784
  822
  861
  903
Cash available for distribution, $m
  2,051
  2,136
  2,284
  2,462
  2,527
  2,592
  2,658
  2,724
  2,791
  2,975
  2,798
  3,159
  3,558
  3,996
  4,475
  4,997
  5,563
  6,176
  6,836
  7,547
  8,311
  9,130
  10,008
  10,946
  11,947
  13,016
  14,155
  15,368
  16,659
  18,032
Discount rate, %
  4.60
  4.83
  5.07
  5.33
  5.59
  5.87
  6.16
  6.47
  6.80
  7.14
  7.49
  7.87
  8.26
  8.67
  9.11
  9.56
  10.04
  10.54
  11.07
  11.62
  12.21
  12.82
  13.46
  14.13
  14.84
  15.58
  16.36
  17.17
  18.03
  18.93
PV of cash for distribution, $m
  1,961
  1,944
  1,969
  2,000
  1,925
  1,841
  1,749
  1,649
  1,544
  1,493
  1,264
  1,273
  1,268
  1,247
  1,211
  1,159
  1,094
  1,017
  930
  837
  740
  643
  549
  459
  376
  302
  237
  182
  136
  99
Current shareholders' claim on cash, %
  97.5
  94.9
  92.5
  90.3
  88.3
  86.7
  85.5
  84.8
  84.5
  84.5
  84.5
  84.5
  84.5
  84.5
  84.5
  84.5
  84.5
  84.5
  84.5
  84.5
  84.5
  84.5
  84.5
  84.5
  84.5
  84.5
  84.5
  84.5
  84.5
  84.5

Hewlett Packard Enterprise Company is a provider of technology solutions. The Company’s segments include: Enterprise Group, Software, Financial Services and Corporate Investments. The Enterprise Group segment provides its customers with the technology infrastructure they need to optimize traditional information technology (IT). The Software segment allows its customers to automate IT operations to simplify, accelerate and secure business processes and drives the analytics that turn raw data into actionable knowledge. The Financial Services segment enables flexible IT consumption models, financial architectures and customized investment solutions for its customers. The Corporate Investments segment includes Hewlett Packard Labs and certain business incubation projects, among others.

FINANCIAL RATIOS  of  Hewlett Packard Enterprise (HPE)

Valuation Ratios
P/E Ratio 75.4
Price to Sales 0.9
Price to Book 1.1
Price to Tangible Book
Price to Cash Flow 29.2
Price to Free Cash Flow -11.5
Growth Rates
Sales Growth Rate -4.7%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -4.4%
Cap. Spend. - 3 Yr. Gr. Rate -2.8%
Financial Strength
Quick Ratio 3
Current Ratio 0
LT Debt to Equity 43.4%
Total Debt to Equity 59.8%
Interest Coverage 2
Management Effectiveness
Return On Assets 1.4%
Ret/ On Assets - 3 Yr. Avg. 3.3%
Return On Total Capital 0.8%
Ret/ On T. Cap. - 3 Yr. Avg. 4.3%
Return On Equity 1.3%
Return On Equity - 3 Yr. Avg. 6%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 30.1%
Gross Margin - 3 Yr. Avg. 31.6%
EBITDA Margin 12.9%
EBITDA Margin - 3 Yr. Avg. 20%
Operating Margin 2.2%
Oper. Margin - 3 Yr. Avg. 7.5%
Pre-Tax Margin 0.9%
Pre-Tax Margin - 3 Yr. Avg. 6.6%
Net Profit Margin 1.2%
Net Profit Margin - 3 Yr. Avg. 6.5%
Effective Tax Rate -60.3%
Eff/ Tax Rate - 3 Yr. Avg. -26.9%
Payout Ratio 124.4%

HPE stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the HPE stock intrinsic value calculation we used $28871 million for the last fiscal year's total revenue generated by Hewlett Packard Enterprise. The default revenue input number comes from 2017 income statement of Hewlett Packard Enterprise. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our HPE stock valuation model: a) initial revenue growth rate of 2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.6%, whose default value for HPE is calculated based on our internal credit rating of Hewlett Packard Enterprise, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Hewlett Packard Enterprise.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of HPE stock the variable cost ratio is equal to 40.3%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $16714 million in the base year in the intrinsic value calculation for HPE stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for Hewlett Packard Enterprise.

Corporate tax rate of 27% is the nominal tax rate for Hewlett Packard Enterprise. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the HPE stock is equal to 1%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for HPE are equal to 83.1%.

Life of production assets of 10 years is the average useful life of capital assets used in Hewlett Packard Enterprise operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for HPE is equal to -13%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $23466 million for Hewlett Packard Enterprise - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 1646 million for Hewlett Packard Enterprise is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Hewlett Packard Enterprise at the current share price and the inputted number of shares is $26.8 billion.

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COMPANY NEWS

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▶ Dell moves to go public, spurns IPO   [01:57PM  Reuters]
▶ Much of Hewlett Packard Enterprise campus in Roseville sold for $93.5 million   [Jun-29-18 10:40AM  American City Business Journals]
▶ San Jose's north side is 'on the cusp' of a development boom  but will it last?   [Jun-28-18 04:37PM  American City Business Journals]
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▶ HPE Sets Analyst Day As Cloud-Computing War Heats Up Vs. Cisco, Dell   [Jun-18-18 04:15PM  Investor's Business Daily]
▶ UC Davis Health names Harsh, Meg Whitman's husband, as new neurological surgery chair   [Jun-13-18 10:17AM  American City Business Journals]
▶ Sinclair taps Hewlett Packard Enterprise exec as broadcaster's first CIO   [Jun-11-18 02:13PM  American City Business Journals]
▶ Is Hewlett-Packard Company (HPQ) a Buy?   [Jun-09-18 11:14AM  Motley Fool]
▶ It's Been An EPYC Couple Of Weeks For AMD   [Jun-08-18 09:55AM  Forbes]
▶ Koch subsidiary invests $25 million in Cincinnati, creates 35 jobs   [Jun-01-18 02:40PM  American City Business Journals]
▶ HP Inc.: The HP Split Worked   [08:12AM  InvestorPlace]
▶ HP Inc. names new CFO as longtime exec announces retirement   [May-29-18 05:52PM  American City Business Journals]
▶ HPE CEO warns of 'challenging second half' to come   [01:29PM  American City Business Journals]
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