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Hewlett Packard Enterprise (HPE): Assessing Valuation After a Strong Multi‑Year Shareholder Return Run

Simply Wall St · 2d ago

Hewlett Packard Enterprise (HPE) has quietly rewarded patient shareholders, with the stock climbing about 20% over the past month and 16% over the past year, far outpacing many legacy tech peers.

See our latest analysis for Hewlett Packard Enterprise.

The latest move has been driven less by headline grabbing announcements and more by investors warming to HPE’s improving growth profile and cash generation. The current 1 year total shareholder return of 16.25% sits on top of a powerful 5 year total shareholder return of 142.86%, which signals that momentum is still firmly building.

If HPE’s run has you rethinking your tech exposure, this could be a good moment to explore other potential winners across high growth tech and AI stocks.

With earnings growth accelerating, a modest discount to analyst targets, and valuation still below some cloud peers, the real question now is whether HPE remains undervalued or if the market is already pricing in its next leg of growth.

Most Popular Narrative Narrative: 6% Undervalued

With Hewlett Packard Enterprise last closing at $24.70 against a narrative fair value of $26.28, the story leans toward upside if its transformation plays out.

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.

Read the complete narrative.

To see what makes this diversified platform worth more on paper than today, from revenue acceleration to richer margins and a higher future earnings multiple, explore the details.

Result: Fair Value of $26.28 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, heavier reliance on legacy hardware and execution risk around integrating Juniper could derail margin expansion and weaken the long term growth story.

Find out about the key risks to this Hewlett Packard Enterprise narrative.

Build Your Own Hewlett Packard Enterprise Narrative

If you prefer to dig into the numbers yourself and challenge this view, you can build a personalized narrative in just a few minutes: Do it your way.

A great starting point for your Hewlett Packard Enterprise research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If HPE has sharpened your interest, do not stop here. Your next high conviction idea could be waiting in a few targeted, data driven stock screens.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.