Verdict
Overvalued
What is Hewlett Packard Enterprise Company (HPE) worth?
Currently $46.72 — 11% premium to Dolphy’s fair value · ● live
Steady operator
medium confidence in the point estimate
● live · as of 2026-07-21 21:13 · Market cap $65.6B
As of 2026-07-15, Hewlett Packard Enterprise Company (HPE) looks overvalued. Dolphy estimates a fair value of $42.00 versus a current price of $46.72 — a 11% premium to fair value.
Executive summary
HPE is a leading global enterprise IT infrastructure provider, covering four segments: servers, hybrid cloud, networking, and financial services. Following the acquisition of Juniper Networks (~$14 billion) completed in July 2025, its scale jumped: FY2025 revenue of $34.296 billion, TTM ~$38.8 billion. The latest 10-Q (filed 2026-06-02, for Q2 FY2026 / period ended 2026-04-30) shows a significant earnings recovery: Q2 continuing operations net income of $624 million, diluted EPS of $0.44 (vs. a loss in the prior-year period), with normalized EBITDA annualized to ~$7.1 billion, contrasting with FY2025 full-year net income of only $57 million (dragged by transaction fees, impairments, and restructuring). The stock has been revalued under the AI and networking narrative to $49.56 (market cap $65.6 billion). Based on normalized EBITDA of ~$6.8 billion, an 11x multiple, and reasonable treatment of FS liabilities, the fair value midpoint is ~$42, representing a ~15% premium to the current price – slightly overvalued. Key risks include ~4x high leverage, thin earnings quality from AI servers, and severe cash flow volatility.
How we value it
DCF + EV/EBITDA and P/E peer comparison (scenario-weighted)
Every figure is computed from SEC filings by the analyst’s calculator tools and fact-checked by a second, independent model.
Investment thesis
About Hewlett Packard Enterprise Company
Hewlett Packard Enterprise Company, together with its subsidiaries, develops intelligent solutions in the United States, the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and internationally. It operates in five segments: Server, Hybrid Cloud, Networking, Financial Services, and Corporate Investments and Other. The company offers general-purpose servers, workload-optimized servers, and integrated systems, including HPE ProLiant Rack and Tower servers; HPE Synergy; HPE Scale Up servers; HPE Edgeline servers; HPE Cray EX; HPE Cray XD; and HPE NonStop. It also provides cloud-native and hybrid solutions, such as HPE Alletra Storage; HPE InfoSight; HPE CloudPhysics; and HPE GreenLake. In addition, the company develops and sells networking and security products and services comprising hardware products, which include Wi-Fi and private cellular access points, MX and PTX routers, and gateways, as well as QFX, EX, and CX switches; software products, such as Mist and Aruba Central; and services comprising professional, maintenance, support services, management software, and education and training programs. Further, it offers investment solutions, including leasing, financing, IT consumption, utility programs, and asset management services, as well as supports financial solutions for on-premise flexible consumption models. The company serves commercial and large enterprise groups, as well as business and public sector enterprises. It sells its products through resellers, distribution partners, master area partners, original equipment manufacturers, independent software vendors, systems integrators, and advisory firms. The company was founded in 1939 and is headquartered in Spring, Texas.
Frequently asked questions
Is HPE a buy?
As of 2026-07-15, Hewlett Packard Enterprise Company (HPE) looks overvalued. Dolphy estimates a fair value of $42.00 versus a current price of $46.72 — a 11% premium to fair value.
What is HPE's fair value?
Dolphy's estimated fair value for Hewlett Packard Enterprise Company (HPE) is $42.00, versus a current market price of $46.72.
Is HPE overvalued or undervalued?
Hewlett Packard Enterprise Company (HPE) currently looks overvalued — trading at a 11% premium to Dolphy's estimated fair value of $42.00.
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AI-generated research by Dolphy for educational and informational purposes only — not investment advice. Figures are computed from public sources and may contain errors.